Section 26
Contracts to cease to have effect unless ratified by the Central Government or the Government company.
About this Act
An Act to provide for the acquisition and transfer of the undertakings of the Hooghly Docking and Engineering Company Limited with a view to securing the better utilisation of the available infrastructure thereof, to modernise and increase the capacity for ship building and ship repairing so as to reduce the import of ships, vessels and craft and to augment the production of grey iron, non-ferrous and alloy castings by the said undertakings so as to subserve the interests of the general public by ensuring the continued supply of the said articles which are essential to the needs of the economy of the country, and for matters connected therewith and 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 existing, or new, Government company in which such
undertakings have been vested under this 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 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 Central Government or the Government company; 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 such Government 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 Central Government or the Government company; 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.