5. Contract in bad faith may be cancelled or varied.
- Without prejudice to the provisions contained in Section 4, the State Government may cancel or vary any contract or agreement entered into any time before the issue of the notified order under sub-section (1) of Section 3 between the Governing Body and any other person or between the Bard of Control and any other person if the State Government is satisfied that such contract or agreement were malafide and entered into in bad faith and was detrimental to the interest of the institution.
