Section 8 in The M.P. Vidyut Pradaya Upakram (Arjan) Adhiniyam, 1974
8. Contracts in bad faith may be cancelled or varied.
(1)If the State Government is satisfied, after such enquiry as it may think fit, that any contract or agreement other than a contract of employment entered into at any time on or after the 1st July, 1972, between the licensee or his agents or manager of the undertaking and any other persons, in so far as such contract or agreement relates the undertaking has been entered into bad faith or is detrimental to the interest of the undertaking it may make an order cancelling or varying (either unconditionally or subject to such conditions as it may think fit to impose) such contract or agreement and thereafter the contract or agreement shall have effect accordingly :Provided that no contract or agreement shall be cancelled or varied without giving the parties to the contract or agreement reasonable opportunity of being heard.(2)Any person aggrieved by an order under sub-section (1) may make an application to the Principal Court of Civil Jurisdiction within the local limits of whose jurisdiction the undertaking is situated for the variation or reversal of such order and thereupon such Court may confirm, modify or reverse such order.(3)Without prejudice to the right of the State Government to cancel or vary any contract or agreement as provided in sub-section (1), where the State Government is of the opinion that the licensee has on or after 1st July, 1972, disposed of any property whether by way of sale, exchange, gift, lease or otherwise or incurred any expenditure, liability or obligation otherwise than in normal course of events with a view to benefit unduly the licensee or some other person and thereby caused loss to the State Government as succeeding owner of the undertaking, the State Government shall be entitled to claim deduction under Section 12 towards the loss sustained by the State Government.
