Section 27 in Bengal Chemical And Pharmaceutical Works Limited (Acquisition And Transfer of Undertakings) Act, 1980
27. Contracts to cease to have effect unless ratified by the Central Government or the Government company or existing, or new, Government company.-
Every contract entered into by the Company in relation to its undertaking, 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 that day, cease to have effect unless such contract is, before the expiry of the said period, ratified, in writing, by the Central Government or, as the case may be, the existing, or new, Government company, and in ratifying such contract, the Central Government or as the case may be, the existing, or new, Government company may make such alteration or modification therein as it may think fit:Provided that the Central 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 Central 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 writing its reasons for refusal to ratify the contract or for making any alteration or modification therein.
