Section 25
Contracts to cease to have effect unless ratified by Central Government or Cement Corporation.
The Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act, 1981
About this Act
An Act to provide for the acquisition and transfer of the undertakings of the Dalmia Dadri Cement Limited with a view to securing the proper management of such undertakings so as to subserve the interest of the general public by ensuring the continued manufacture, production and distribution of cement which is essential to the needs of the economy of the country and matters connected therewith or incidental thereto.
Every contract entered into by the Company in relation to its undertakings, 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 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 Cement Corporation, where such undertakings have been
vested in that Corporation under this Act, and in ratifying such contract, the Central Government or the
Cement Corporation may make such alteration or modification therein as it may think fit:
Provided that the Central Government or the Cement Corporation shall not omit to ratify 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 Central Government or the Cement Corporation, and
(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.
Provided that the Central Government or the Cement Corporation shall not omit to ratify 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 Central Government or the Cement Corporation, and
(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.