(1.) This is an appeal by the State of Bombay against the decree passed by the Assistant Judge, Baroda, in Appeal No. 120 of 1954. The plaintiff, who is the respondent in this appeal, is a graduate in medicine and surgery of the appeal, is a graduate in medicine and surgery of the Bombay University. After graduation the plaintiff joined the former Baroda Government in Medical Department on 14 October 1941, and he was a permanent employee of the State till the date of its merger, 1 August 1949, with the State of Bombay. Before the merger of the State there was an agreement between His Highness the Maharaja of Baroda and the Government of the Union of India that the services of the Baroda State servants were either to be contained on the same conditions as those prevailing in the State or that the servants were to be given reasonable compensation for termination of employment. Pursuant to this agreement, the Government of Bombay issued on 18 July 1949 a Resolution No. 2735/46 (Political and Services Department), stating in its preamble that :
(2.) Rule 1 (a) provided that certain employees shall be discharged if they were :
(3.) The plaintiff was accepted in the employment of the State of Bombay after the merger of the Baroda State, and he contained to remain employed in the Medical Department till 19 August, 1950. On that date a notice was served upon the plaintiff informing him that it was decided by the Government that he be discharged from service under rule 1(A)(i) of the rules contained in Government Resolution No. 2735 /46 dated 18 July 1949. By the second paragraph of this notice the plaintiff was informed that he was given one month's notice of discharge in accordance with rule No. 1(A)(1) of the rules and that he will be discharged from services with effect from 18 September 1950 afternoon. The plaintiff was directed to hand over charge of his post of Resident Medical Officer, S. P. Sanatorium, Baroda, to Dr. O. P. Shah, if no other medical officer came on that date to relieve him.