Amendment status not verified — confirm the current text below against the official source.
Every contract entered into by the Company in relation to its undertakings for any service, sale or supply, and in force immediately before the appointed day, shall, on and from the expiry of one hundred and eighty days from the date of publication of this Act in the Official Gazette, cease to have effect unless such contract is, before the expiry of the said period ratified in writing by the State Government or, as the case may be, the existing, or new, Government company, and in ratifying such contract, the State Government or, as the case may be, the existing, or new Government company may make such alterations or modification therein as it may think fit: Act to have overriding effect. Contracts to cease to have effect unless ratified by the State Government or existing, or new, Government company. Provided that the State Government or, as the case may be, the existing, or new, Government company shall not omit to ratify a contract and shall not make any alteration or modification therein— (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 State Government or, as the case may be, such Government company; and (b) except after giving the parties to the contract a reasonable opportunity of being heard and except after recording in witing its reasons for its refusal to ratify the contract or for making any alteration or modification therein.