Section 27 in Karnataka Co-Operative Textile Mills (Acquisition and Transfer) Act, 1986
27. Contract to cease to have effect unless ratified by Company.
- Every contract entered into by the lessor, lessee or the present management in relation to the mills which has vested in the Government under section 4, for any service, sale or supply and in force immediately before the appointed day, shall on and from the expiry 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 Company and in ratifying such contract, the Company may make such alteration or modification therein as it may think fit:Provided that the 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 interests of the Company;(b)except after giving to 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.
