M. Katju, J. - (1.) This writ petition has been fied against the resolution of the Board of Directors of U.P. State Textile Corporation Ltd. dated 11.7.1997, Annexure-14 to the petition by which the post of Joint Managing Director in the Corporation has been abolished. The petitioner has also prayed for a certiorari to quash the impugned order dated 15.7.1997 dispensing with the services of the petitioner as Joint Managing Director.
(2.) We have heard learned counsel for the parties. The Corporation is wholly owned and managed by the State Government and it is also registered under the Indian Companies Act. It is managed and controlled by a Board of Directors of which the Chairman and Managing Director is an I.A.S. Officer. The corporation owns several spinning mills in the State.
(3.) The petitioner was selected and appointed as Joint Managing Director of the Corporation vide Annexure-4 to the writ petition. In para 15 of the petition it is alleged that the official lobby did not relish and developed cold feet in permitting participation of a technical hand in the Board and hence confirmation order was not issued to him. On the other hand a letter dated 27.11.1992 was issued to the petitioner converting the tenure of his appointment from 2 years to 3 years. A perusal of the letter dated 27.11.1992 shows that the appointment was for 3 years but it could be renewed by the Board for a period not exceeding 3 years at a time but not beyond the age of superannuation, i.e., 58 years. Clause 2 (b) of this letter also states that the service is terminable without assigning reasons by one month notice or notice pay. By letter dated 15.1.1993 the petitioner's appointment was renewed for a further period of 3 years vide Annexure-6 and by resolution dated 28.1.1996 it was further extended by 3 years w.e.f. 1.1.1996, i.e., till 31.12.1998 vide Annexure-7. By another resolution dated 29.5.1997 it was decided that the petitioner should be given appointment on the same terms and conditions as his predecessor Sri V.K. Jain vide Annexure-10.;