Amritsar Oil Works (Acquisition and Transfer of Undertakings) Act : CONTRACT TO CEASE TO HAVE EFFECT UNLESS

Amritsar Oil Works (Acquisition and Transfer of Undertakings) Act,1982

Act No : 50

Section : CONTRACT TO CEASE TO HAVE EFFECT UNLESS RATIFIED BY THE CENTRAL GOVERNMENT OR GOVERNMENT COMPANY

SECTION 22: CONTRACT TO CEASE TO HAVE EFFECT UNLESS RATIFIED BY THE CENTRAL GOVERNMENT OR GOVERNMENT COMPANY

Every contract entered into by the Amritsar Sugar Mills Company in relation to the Amritsar Oil Works which has vested in the Central Government undersection 3-, for any service, sale or supply and in force immediately before the appointed day shall, on and from the expiry of a period of thirty days from the appointed day, cease to have effect unless such contract is, before the expiry of that period, ratified, in writing by the Central Government or the Government company and in ratifying such contract the Central Government or the Government company may make such alteration or modification therein as it may think fit:

Provided that the Central Government or the Government company shall not omit to ratify a contract and shall not make any alteration or modification in a contract-

(a) unless it is satisfied that such contract is unduly onerous or has been entered into in bad faith or is detrimental to the interest of the Central Government or the Government company; and

(b) except after giving the parties to the contract a reasonable opportunity of being heard and except after recording in writing its reasons for refusal to ratify the contract or for making any alteration or modification therein.