Section 134 · Power of Authority to make agreement

(1) An Authority shall be competent to make any agreement with any person in respect of any matter which is to be provided for in a scheme subject to the power of the State Government to modify or disallow such agreement and unless it is otherwise expressly provided therein, such agreement shall take effect on or after the day on which the scheme comes into force. (2) An agreement referred to in sub-section (1) shall not in any way affect the duties of the Arbitrator as stated in section 102 or the rights of the third parties but it shall be binding on the parties to the agreement, notwithstanding any decision that may be made by the Arbitrator : Provided that, if any agreement contains any provisions which are inconsistent with the final scheme as drawn up by the Arbitrator under section 102 or the final scheme as sanctioned by the State Government under section 113 such an agreement shall be void : Provided further that if the agreement is modified by the State Government, either party shall have the option of avoiding it if it so elects.