(1) Where any liability of the proprietors arising out of any item specified in category I of the Schedule is not discharged fully by the Commissioner out of the amount paid under this Act, the Commissioner shall intimate in writing to the State Government the extent of the liability which remains undischarged and that liability shall be assumed by the State Government.
(2) The State Government may, by order, direct the Corporation to take over any liability assumed by the Government under sub-section (1) and on receipt of such direction, it shall be the duty of the Corporation to discharge such liability.
26. The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law, other than this Act or in any decree or order of any court, tribunal or other authority.
27. Every contract entered into by the proprietors in relation to their undertaking, which has vested in the State 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 State Government, or the Corporation, or new Government company, in which such undertaking has been vested under this Act, and in ratifying such contract, the State Government, or the Corporation or the new Government company, as the case may be, may make such alteration or modification therein as it may think fit:
Provided that, the State Government, or the Corporation, or the new Government company 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 interest of the State Government, or the Corporation or the new Government company ; and
(b) except after giving 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.
28. No suit, prosecution or other legal proceeding shall lie against the State Government, or the Corporation, or the new Government company or any officer or other employee of that Government, or the Corporation or the new Government company, or other person authorised by the State Government or the Corporation, or the new Government company for anything, including any damage caused or likely to be caused by anything , which is in good faith done or intended to be done under this Act.
Assumption of liabilities.
Act to have overriding effect.
Contracts to cease to have effect unless ratified by State Government or Corporation or new Government company.
Protection of action taken in good faith.
16 Central India Spinning, Weaving and Manufacturing [1986 : Mah.XLVI Company Limited, The Empress Mills, Nagpur (Acquisition and Transfer of Undertaking) Act, 1986.