5. Contract in bad faith may be cancelled or varied.

(1) Without prejudice to the provisions contained in section 4, the Board of control may with the previous approval of the Government, rescind or alter any contract or initiate proceeding before any court or authority having jurisdiction in this behalf for the purpose of cancelling or varying any contract or agreement entered in to at any time before the issue of the notified order under sub-section (1) of section 3 between the society and any person. (2) Where any proceeding is initiated before any court or authority under sub-section (1), the court or authority, as the case may be may, if satisfied after due enquiry that such contract or agreement had been entered in bad faith and is detrimental to the interests of the societies, make an order cancelling or varying (either unconditionally or subject to such conditions as it may think fit to impose) the contract or agreement and in that event the contract or agreement shall cease to have effect or stand cancelled, as the case may be or, shall have effect subject to such variations.