Contracts to cease to have effect unless ratified by the Government

(1) Every contract (including any contract of employment or other arrangement) entered into by the Board in relation to the College, the management of which has vested in the Government under section 3, and in force immediately before the appointed day, shall, on and from the date of the expiry of ninety days from the appointed day, cease to have effect unless such contract or other arrangement has been, before the expiry of that period, ratified, in writing, by the Government; and in ratifying such contract or other arrangement, the Government may make such alterations or modifications therein as it may think fit: Provided that the Government shall not omit to ratify any contract or other arrangement and shall not make any alteration or modification therein- (a) unless it is satisfied that such contract or other arrangement is unduly onerous or has been entered into in bad faith or is detrimental to the interests of the College; and (b) except after giving the party or parties to the contract as the case may be, or other arrangement a reasonable opportunity of being heard and except after recording, in writing, the reasons for refusal to ratify the contract 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 other arrangement is terminated, altered or modified under sub-section (1) or who ceases to hold any office by reason of any provision contained in section 4, shall be entitled to claim any compensation for the premature termination of the contract or other arrangement or for any alteration or modification therein or for the loss of office.