Section 28 in The National Company Limited (Acquisition And Transfer Of Undertakings) Act, 1980
28. Contracts to cease to have effect unless ratified by the Central Government or the Government company.
- Every contract entered into by the Company in relation to any of the undertaking, owned by it, which has vested in the Central Government under section 3 for any service, sale or supply, and in force immediately before the appointed day, shall, on and from the expiry of a period of one hundred and eighty days from the appointed day, cease to have effect unless such contract is, before the expiry of that period, ratified, in writing, by the Central Government or the existing, or new, Government company in which such undertakings have been vested under Act, and in ratifying such contract, the Central Government or the Government company may make such alteration or modification therein as it may think fit:Provided that the Central Government or such Government 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 interest of the Central Government or the 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.
