JUDGMENT

Gopal Sri Ram JCA:

This is an appeal against the decision of Abu Mansor J (now JCA.) whereby he quashed an award of the Industrial Court that upheld the appellant's act of terminating the respondent's employment.

The facts relevant to this appeal are as follows.

The appellant is a wholly owned subsidiary of the State Economic Development Corporation of Selangor. It owns and manages several businesses. Amongst these were an hotel known as the Holiday Inn City Centre and a recreational club called Kelab Darul Ehsan ("the club"). But it now no longer owns nor manages the club.

On 24 August 1985, the respondent commenced his employment with the appellant. He was initially employed as the resident manager of the Holiday Inn City Centre. By a letter dated 25 September 1986, he was, with effect from 1 October 1986, appointed as the assistant manager of the club. Later, on 1 April 1987, one Encik Bistaman Siru Abdul Rahman was appointed as the club's general manager, while the respondent was almost simultaneously appointed as its food and beverage director. Later, one Encik Azman Shah replaced Bistaman as the chief executive of the club.

On 13 November 1987, Azman Shah sent fo