(1.) Guru Nanak College at Gurdaspur was a private institution affiliated to Guru Nanak Dev University. The respondent was appointed as Principal of the College by a resolution of the Managing Committee adopted on 27/5/1975. His appointment was approved by the Vice- Chancellor on 30/6/1975 and thereafter he was confirmed on that post with effect from 31/5/1976.
(2.) Guru Nanak College, as also three other colleges were proposed to be taken over by the government under its memo dated 30/9/1982 on the condition that only those staff members who possessed the requisite qualifications wouldalone be absorbed and that too as "new entrants" while the Principal of the college would be brought in as seniormost lecturer and not as Principal. This memorandum was considered by the Managing Committee of the college in its meeting held on 18/5/1983 and was approved. Consequently, a gift deed dated 11/7/1983 was executed between the management of the college and the State government in which the management was described as donors and it was provided, inter alia, as under:
(3.) In pursuance of the aforesaid gift deed, the staff members of the college were absorbed in government service and the respondent who, prior to the takingover of the college by the government, was working as the Principal, was brought in as seniormost lecturer.