Section 26
Contracts to cease to have effect unless ratified by the Central Government or Government company. Repealed
The Smith, Stanistreet and Company Limited (Acquisition and Transfer of Undertakings) Act, 1977
About this Act
An Act to provide for, in the public interest, the acquisition and transfer of the right, title and interest of the undertakings of Messrs. Smith, Stanistreet and Company Limited, Calcutta and for matters connected therewith or incidental thereto.
(1) Every contract entered into by the Company in relation to its undertakings 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 that day, cease to have effect, unless such contract is before the
expiry of the period, ratified, in writing, by the Central Government or Government company, and, in
ratifying such contract, the Central Government or Government company may make such alteration or
modification therein as it may think fit:
Provided that the Central Government or the Government company shall not omit to ratify a contract, and, shall not make any alteration or modification in a contract, 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 Government company.
(2) The Central Government or Government company shall not omit to ratify a contract, and, shall not make any alteration or modification therein, 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 Government company shall not omit to ratify a contract, and, shall not make any alteration or modification in a contract, 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 Government company.
(2) The Central Government or Government company shall not omit to ratify a contract, and, shall not make any alteration or modification therein, 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.