The Oil Industry (Development) Act, 1974
12. Powers and duties of the
Directors.
- Subject to the control of the Board,
the Directors appointed under section 10 shall take such steps as may be
necessary for the purpose of efficiently managing the business of the oil
industrial concern and shall exercise such powers and perform such duties as may
be prescribed.
- Without prejudice to the
generality of the powers vested in them under sub-section (1), the Directors
appointed under section 10.may, with the previous approval of the Board, make
an application to a court for the purpose of canceling or varying any contract
or agreement entered into at any time before the issue of the notified order
under section 10, between the oil industrial concern and any other person and
the court may, if satisfied after due inquiry that such contract or agreement
had been entered into in bad faith and is detrimental to the interests of the
concern, make an order cancelling or varying (either unconditionally or subject
to such conditions as it may think fit to impose) that contract or agreement
and the contract or agreement shall accordingly stand cancelled or, as the case
may be, have effect as so varied.
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