Section 25
Contracts to cease to have effect unless ratified by the Central Government or Andrew Yule. Repealed
The Transformer and Switchgear Limited (Acquisition and Transfer of Undertakings) Act, 1983
About this Act
An Act to provide for the acquisition and transfer of the undertakings of the Transformer and Switchgear Limited with a view to securing the better utilisation of the available infrastructure thereof and to modernise and augment the production of transformers, switchgears and other allied electrical equipments by the said undertakings so as to subserve the interests of the general public be ensuring the continued supply of the aforesaid articles which are essential to the needs of the economy of the country and for 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 Andrew Yule, in which such undertakings have been vested under this Act, and in
ratifying such contract, the Central Government or Andrew Yule may make such alteration or
modification therein as it may think fit:
Provided that the Central Government or Andrew Yule 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 Andrew Yule; 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 Andrew Yule 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 Andrew Yule; 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.