Caltex [Acquisition of Shares of Caltex Oil Refining (India) Limited and of the Undertakings in India of

Caltex [Acquisition of Shares of Caltex Oil Refining (India) Limited and of the Undertakings in India of Caltex (India) Limited] Act,1977

Act No : 17

Section : CONTRACTS TO CONTINUE UNLESS TERMINATED BY CENTRAL GOVERNMENT

SECTION 15: CONTRACTS TO CONTINUE UNLESS TERMINATED BY CENTRAL GOVERNMENT

- (1) Every contract entered into by Caltex (India) for any service, sale or supply in India, and in force immediately before the appointed day shall, unless terminated under sub-section (2) within a period of two years from the appointed day, continue to be of full force and effect against or in favour of the Central Government or, as the case may be. the successor Government company.

(2) The Central Government may, if it is satisfied that any contract referred to in sub-section (1) is unduly onerous or has been entered into in bad faith or is detrimental to the interests of that Government or the successor Government company, as the case may be, by order in writing, cither terminate such contract or make such alterations or modifications therein as it may think fit:

Provided that the Central Government shall not terminate any contract or make any alteration or modification therein except after giving to the parties to the contract, a reasonable opportunity of being heard and except after recording in writing its reasons for such termination, alteration or modification, as the case may be.