27. Protection of action taken in good faith.—(1) No suit, prosecution or other legal proceeding
shall lie against the Custodian in respect of anything which is in good faith done or intended to be done
under this Act.
(2) No suit or other legal proceeding shall lie against the Central Government or the Custodian or the
new company for any damage caused or likely to be caused by anything which is in good faith done or
intended to be done under this Act.
28. Contracts, etc., in bad faith may be cancelled or varied.—(1) If the Central Government is
satisfied, after such inquiry as it thinks fit, that any contract or agreement entered into at any time within
twelve months immediately preceding the appointed day, between the old company and any other person
has been entered into in bad faith and is detrimental to the interests of the old company or of the new
company, it may 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 thereafter the contract or agreement shall have
effect accordingly:
Provided that no contract or agreement shall be cancelled or varied except after giving to the parties
to the contract or agreement a reasonable opportunity of being heard.
(2) Any person aggrieved by an order made under sub-section (1) may make an application to the
Tribunal for the variation or reversal of such order and thereupon the Tribunal may confirm, modify or
reverse such order.
29. Power to terminate contract of employment.—If the Custodian is of opinion that any contract
of employment entered into by or on behalf of the old company at any time before the appointed day is
unduly onerous, he may, by giving to the employee one month’s notice in writing or the salary or wages
for one month in lieu thereof, terminate such contract of employment.
30. Power to remove difficulty.—If any difficulty arises in giving effect to the provisions of this
Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the
difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the
commencement of this Act.
31. Power to make rules.—(1) The Central Government may, by notification, make rules to carry
out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:—
(a) the form and manner in which every claim shall be preferred before the Tribunal;
(b) the form in which fresh shares shall be issued by the Custodian;
(c) any other matter which is required to be, or may be, prescribed.
(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House
of Parliament while it is in session for a total period of thirty days which may be comprised in one session
or in two or more successive sessions, and if, before the expiry of the session immediately following the
session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or
both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such
modified form or be of no effect as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done under that rule.