Section 30 of The Textile Undertakings (Nationalisation) Act, 1995
- (1)Every contract entered into by the owner or occupier of any textile undertaking for any service, sale or supply and in force immediately before the appointed day shall, on and from the expiry of one hundred and twenty days from the date on which the Textile Undertakings (Nationalisation) Ordinance, 1995 (Ord. 6 of 1995) was promulgated, cease to have effect unless such contract is before the expiry of that period, ratified, in writing, by the National Textile Corporation and in ratifying such contract the National Textile Corporation may make such alterations or modifications therein as it may think fit: Provided that the National Textile Corporation 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 textile undertaking.
- (2)The National Textile Corporation shall not omit to ratify a contract or 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.
Summary
- Old contracts made by former owners for services, sales, or supplies do not automatically stay valid forever.
- The National Textile Corporation must "ratify" (officially approve) the contract in writing to keep it going.
- When approving a contract, the Corporation has the right to change or modify the terms as they see fit.
- They can only refuse to approve a contract if it is "unduly onerous" (too burdensome), made in bad faith, or harmful to the mill.
- Before rejecting or changing a contract, the Corporation must give the other people involved a chance to be heard and must write down their reasons.
Practical examples
FAQ
1. Can the National Textile Corporation change my contract?
Yes, the law allows them to make alterations or modifications when they ratify it.
2. On what grounds can the Corporation reject a contract?
They can only do so if the contract is too burdensome (unduly onerous), made in bad faith, or bad for the mill's interests.
3. Do I get to defend my contract before it is canceled?
Yes, the Corporation must give the parties to the contract a reasonable opportunity of being heard.
Test yourself
Q1.Under Section 30 of The Textile Undertakings (Nationalisation) Act, 1995, how many days do old contracts have before they cease to have effect without ratification?
Q2.According to Section 30 of The Textile Undertakings (Nationalisation) Act, 1995, in what form must the National Textile Corporation ratify a contract?
Q3.Under Section 30 of The Textile Undertakings (Nationalisation) Act, 1995, what is a valid reason for the Corporation to NOT ratify a contract?
Q4.What procedural step must the National Textile Corporation take before refusing to ratify a contract under Section 30 of The Textile Undertakings (Nationalisation) Act, 1995?