(1) Every contract or agreement (including any contract of employment or other arrangement) entered into at any time by the Society in relation to institute the management of which has vested in the State Government under Section 3, and in force immediately before the appointed day, shall on and from the date of expiry of ninety days from the appointed day, cease to have effect unless such contract or agreement or other arrangement has been, before the expiry of that period, ratified, in writing by the State Government, and in ratifying such contract or agreements or other arrangement, the State Government may make such alterations or modifications therein as it may think fit:
Provided that he State Government shall not omit any condition of, or ratify any contract or agreement or other arrangement and shall not make any alteration or modification therein,- unless it is satisfied that such contract or agreement or other arrangement is unduly onerous or has been entered into in bad faith or is detrimental to the interests of the Institute; and except after giving the parties to the contract or agreement or other arrangement a reasonable opportunity of being heard and except after recording in writing, its reasons for refusal to ratify the contract or agreement or other arrangement or for making any alteration or modification therein.
(2) Notwithstanding anything contained in any law for the time being in force, no person in respect of whom any contract or agreement or other arrangement is terminated altered or modified under sub-section (1), or who ceases to exercise any powers or hold any office by reason of any provision contained in sub-section (1) of Section 4, shall be entitled to claim any compensation for the premature termination of the contract or agreement or other arrangement or for any alteration or modification therein or for the loss of his powers or office.