Section 12 in The Parel Investments and Trading Private Limited and Domestic Gas Private Limited (Taking Over of Management) Act, 1979
12. Contracts in bad faith,etc., to be terminated or modified:
If the Central Government is satisfied, after suchinquiry as it may think fit, that any contract or agreement entered into at anytime within twenty–four months immediately preceding the appointed day,between either of the two companies and any other person, in so far as such;contract or agreement relates to the undertaking of either of the two suchcontract or agreement relates to the undertaking of either of the twocompanies, has been entered into in bad faith or is detrimental to theinterests of the undertaking of the concerned company, it may make an orderterminating or modifying (either unconditionally or subject to such conditionsas it may think fit to impose) and thereafter the contract or agreement shallhave effect accordingly:Provided that no contract oragreement shall be terminated or modified by the Central Government exceptafter giving to the parties to the contract or agreement a reasonableopportunity of being heard and except after recording in writing its reasonsfor such termination or modification.
