Kosangas Company (Acquisition of Undertakings) Act : CONTRACTS TO CONTINUE UNLESS TERMINATED BY CENTRAL

Kosangas Company (Acquisition of Undertakings) Act,1979

Act No : 28

Section : CONTRACTS TO CONTINUE UNLESS TERMINATED BY CENTRAL GOVERNMENT

SECTION 11: CONTRACTS TO CONTINUE UNLESS TERMINATED BY CENTRAL GOVERNMENT

(1) Every contract entered into before the appointed day between Gocul Gas Private Limited or Kosangas company in relation to the undertaking for any service, sale or supply 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.

(3) The Central Government may, if it is satisfied that any contract referred to in sub-section (1) has been entered into in bad faith or is detrimental to the interests of the Central Government or the successor Government company, it may make an order terminating or modifying (either unconditionally or subject to such conditions as it may think fit to impose for the purpose) the contract and thereafter the contract shall have effect accordingly:

Provided that no contract shall be terminated or modified by the Central Government 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 or modification.