Section 16: Contract by or on behalf of the Board

(1) The contracts by or on behalf of the Board shall be made in accordance with the following provisions, namely:- (a) every contract shall be made on behalf of the Board by the Managing Director and shall be in writing; (b) no such contract for any purpose which in accordance with any provision of this Act, the Managing Director may not carry out without the approval or sanction of Board or Government, shall be made by him until or unless such approval is granted; (c) the Managing Director may sanction any estimate or contract including that of technical and administrative nature involving such amount, as may be prescribed; and (d) all other estimates or contracts shall be sanctioned by the Board. (2) Subject to provisions of any other law for the time being in force, the manner and procedure for giving contracts by the Board, shall be such as may be prescribed.