(1) Every contract entered into by the owner or occupier of the undertaking for any service, sale or supply and in force immediately before the date of commencement of this Act, shall, on and from the expiry of one hundred and eighty days from the said date cease to have effect unless such contract is, before the expiry of that period, ratified, in writing, by the State Industrial Development Corporation, and in ratifying such contract the State Industrial Development Corporation, may, with the previous approval of the Government, make such alterations or modifications therein as it may think fit:
Provided that the State Industrial Development 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 undertaking.
(2) The State Industrial Development Corporation 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 reason for refusal to ratify the contract or for making any alteration or modification therein.