Section 17
Contracts in bad faith may be cancelled or varied.
The Metal Corporation (Nationalisation and Miscellaneous Provisions) Act, 1976
About this Act
An Act to provide for the taking over of the management of the undertaking of the Metal Corporation, after such undertaking is deemed to have been transferred to, and re-vested in, the said Corporation, and for the subsequent acquisition of the undertaking of the Metal Corporation for the purpose of enabling the Central Government, in the public interest, to exploit to the fullest extent possible, the zinc and lead deposits in and around Zawar area in the State of Rajasthan and to utilise those minerals in such manner as to subserve the common good, and for matters connected therewith or incidental thereto.
(1) If the Central Government is satisfied
after such inquiry as it may think fit that any contract or agreement entered into at any time within three
years immediately preceding the commencement of this Act between the Metal Corporation or the
managing agents of Metal Corporation and any other person, in so far as such contract or agreement
relates to the undertaking of the Metal Corporation, has been entered into in bad faith or is detrimental to
the interests of the undertaking of the Metal Corporation, it may make an order cancelling (either
unconditionally or subject to such conditions as it may think fit to impose) or varying the contract or
agreement, and thereafter the contract or agreement shall have effect accordingly:
Provided that no such contract or agreement shall be cancelled or varied except after giving to the parties to the contract or agreement a reasonable opportunity of being heard.
(2) Any person aggrieved by an order made under sub-section (1) may make an application to the High Court at Delhi for the variation or reversal of such order and thereupon such court may confirm, modify or reverse such order.
Provided that no such contract or agreement shall be cancelled or varied except after giving to the parties to the contract or agreement a reasonable opportunity of being heard.
(2) Any person aggrieved by an order made under sub-section (1) may make an application to the High Court at Delhi for the variation or reversal of such order and thereupon such court may confirm, modify or reverse such order.