S.8 Claims to be satisfied out of compensation

(1) The Corporation may prefer to the prescribed authority any claim based on any loss sustained by the Corporation by reason of any property, asset, book of account, register or any other document comprised in the scheduled undertaking not having been delivered in accordance with the provisions of Section 5.
(2) Any cane-grower or cane growers' co-operative society may prefer to the prescribed authority any claim in respect of price of sugarcane supplied by him or by its members, as the case may be, to the scheduled undertaking before the appointed day or interest thereon or the society's commission in respect of the sugarcane so supplied.
(3) Without prejudice to the provisions of sub-section (2), the Corporation may send to the prescribed a

S.9 Avoidance of certain secured debts

(1) Where any objection relating to a claim based on a debt, mortgage, charge or other encumbrance or lien, or similar obligation is preferred to the prescribed authority under sub-section (9) of Section 7, of the State Government or the Corporation or any person referred to in sub-section (2), sub-section (4) or sub-section (5) of section 8, or any other creditor of the objector, may contest such claim, inter alia, on any of the following grounds, namely:-
(i) that the transaction of debt, mortgage, charge or other encumbrance or lien, trust or other obligation on which the claim is based was entered into-
(a) to defeat or delay an

S.10 Prescribed Authority

The State Government shall, by notification in the Gazette, appoint an officer and below the rank of a Commissioner or a District Judge to perform the functions of the prescribed authority under this Act, and different prescribed authorities may be appointed in respect of different scheduled undertakings.

S.11 Appeal

Any person (including the State Government) aggrieved by a decision of the prescribed authority may prefer an appeal against such decision to the Tribunal, and the Tribunal may thereupon make such orders as it thinks fit.

S.12 Tribunal

(1) The State Government shall, by notification in the Gazette, constitute a Tribunal to perform the functions assigned to it by this Act, and different Tribunals may be constituted in respect of different scheduled undertakings.
(2) The Tribunal shall consist of a single member, appointed by the State Government, from amongst persons who are or have been Judges of a High Court.

S.13 Power and Procedure

(1) The prescribed authority or the tribunal shall have the powers of a Civil Court, while trying a suit or executing a decree under the Code of Civil Procedure, 1908 (Act V of 1908), in respect of following matters-
(a) Summoning and enforcing the attendance of any person and examining him on oath:
(b) requiring the discovery and production of any document;
(c) receiving evidence on affidavits;
(d) issued commission for the examinati

S.14 Bar of Jurisdiction

Every decision of the prescribed authority, subject to appeal, if any, to the Tribunal and every decision of the Tribunal under this Act shall be final and shall not be called into question in any court.

S.15 Liability in respect of unsatisfied claims and other dues

Nothing in this Act shall be construed-
(i) to affect any dues on any advances referred to in Clause (c) of sub-section (1) of Section 7 or any claim referred to in Section 8 to the extent it remains unsatisfied out of the amount of compensation; or
(ii) to transfer any liability or obligation in respect thereon to the State Government or to the Corporation;
(iii) to bar any remedy or any investigation or legal proceeding (whether pending immediately before the appointed day or not) under any law for the time being in force (including any law relating t

S.16 Transfer of employees

(1) Save as otherwise provided in this section, every person (other than a director of a company in whom the ownership, management or control of the scheduled undertaking was vested immediately before the appointed day, or of a subsidiary company of such company, or a relative, as defined in section 6 of the companies Act. 1956 (Act. 1 of 1956). of such director or of proprietor or partner or lessee of the undertaking, who was employed exclusively in connection with the schedule undertaking immediately before the appointed day shall, on and from that day become an employee of the Corporation and shall hold his office or service therein by the same tenure, at the same remuneration and upon the same terms and conditions, and with same rights and privileges as to pension gratuity and other matters as he would have held the same on the appointed day if the undertaking had not been transferred to and vested in th

S.17 Access to books of account and other documents

Where, at any time during a period of one year from the appointed day, occupier or any person interested in a scheduled undertaking requires for purposes of defending any claims referred to in Sections 7 and 8 before the prescribed authority or for filling any return before any public officer or authority, or any other like purpose, any information contained in any book of account, register or other document which by virtue of this Act has vested in the Corporation, he may apply to the Corporation for inspection of such book, register or other document, and thereupon the Corporation shall afford him all facilities for the purpose and in particular, allow him to inspect any such book, register or document or to take extracts or copies therefrom.

S.18 Penalities

(1) Any person who-
(i) having in his possession, custody or control any property, asset, book of account, register or other document forming part or relating to a scheduled undertaking vested in the Corporation under Section 3, withholds it from the Collector in contravention of the provisions of Section 5; or
(ii) wrongfully obtains possession of any such property, asset, book of account, register or other document; or
(iii) conceals, destroys, mutilates or defaces any book of account, register or other document with intent to evade the provisions of

S.19 Offence by Companies

Offences by Companies.
(1) If the person committing an offence under this Act is a company, the company, as well as every person in charge of and responsible to the company, for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
No suit, prosecution or other legal proceeding shall lie against the State Government, the Corporation, the prescribed authority or the Tribunal, or an officer or servant of the State Government or of the Corporation, or any person authorised by the State Government, the Corporation, the prescribed authority or the Tribunal to perform any function under this Act, for anything which is in good faith done or intended to be done under this Act or any rule or order made thereunder.

S.21 Power to make rules

(1) The State Government may, by notification in the Gazette, make rules to carry out the purposes of this Act.
(2) All rules made in this Act shall, as soon as may be, after they are made, be laid before each House of the State Legislature, while it is in session, for a total period of not less than fourteen days, extending in its one session or more than one successive sessions, and shall, unless some later date is appointed take effect from the date of their publication in the Gazette subject to such modifications or annulments as the two Houses of the Legislature may, during the said period, agree to make, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done thereunder.

S.22 Repeal and saving of Uttar Pradesh Ordinance No. 13 of 1971

(1) The Uttar Pradesh Sugar Undertakings (Acquisition) Ordinance, 1971 is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act as if this Act had come into force on the 3rd day of July 1971.

S.1 Short title

This Act may be called the Uttar Pradesh Sugar Undertakings (Acquisition) Act, 1971.

S.2 Definition

In this Act, unless the context otherwise requires-

(a) ¹[appointed day] in relation to the undertakings specified in Schedule 1 means July 3, 1971 and in relation to the undertakings specified in Schedule II means October 28, 1984 [and in relation to the undertakings specified in schedule III means April 24, 1989].

(b) collector includes any officer authorised by him to perform the functions of the Collector under this Act;

(c) corporation means the Uttar Pradesh State Sugar Corporation Limited, a Government Company within the meaning of Section 617 of the Companies Act, 1956 (Act I of 1956)

(d) occupier in relation to a scheduled undertakings, means the person who immediately before the appointed day had the ultimate control over the affairs of the undertaking;

(e) person interested in relation to a scheduled undertaking acquired under this Act, means all persons claiming an interest in compensation to be made on accou


S.3 Vesting

On the appointed day, every schedule undertaking shall, by virtue of this Act, stand and be deemed to have stood transferred to and vest and be deemed to have vested in the Corporation free from any debt, mortgage, charge or other encumbrance or lien trust or similar obligation (excepting any lien or other obligation in respect of any advance on the security of any sugar stock or other stock-in-trade) attaching to the undertaking:

Provided that any such debt, mortgage, charge or other encumbrance or lien, trust or similar obligation shall attach to the compensation referred to in Section 7, in accordance with the provisions of that section, in substitution for the undertaking:

Provided further that a debt, mortgage, charge or other encumbrance or lien, trust or similar obligation created after the scheduled undertaking or any property or asset comprised therein had been attached or a receiver appointed over it, in any proceedings for realisation of any tax


S.3B 3B

Notwithstanding anything to the contrary contained in any other provision of this Act, the Corporation or any of its subsidiaries may, in public interest, sell or transfer any of its assets and/or liabilities or part thereof which have vested in the Corporation in accordance with the provisions of this Act, or in any other manner.




S.3A 3A

Notwithstanding anything to the contrary contained in any other provisions of this Act, the State Government, may, if it considers necessary or expedient in public interest, divest, sell off, transfer or otherwise part with all or any of its shares in the Corporation at any time.




S.3E Power to remove difficulties

If any difficulty arises in giving effect to the provisions of this Act, the State Government may, by notified order make provisions not inconsistent with the provisions of this Act as may appear to it to be necessary or expedient for removing such difficulty ;

Provided that no order under this section shall be made after expiration of a period of two years from the commencement of the Uttar Pradesh Sugar Undertakings (Acquisition) (Amendment) Act, 2009.




S.3C 3C

Notwithstanding anything to the contrary continue in any other law for the time being in force it shall be lawful for the State Government, if it is satisfied that in the public interest it is necessary to so do, to change the land use or to issue directions for change of land use in relation to the land belonging to the scheduled undertakings of the Corporation or in relation to land belonging to any sugar mill acquired or established by the Corporation or its subsidiaries at any time.




S.3D 3D

The Government Order No. 1215S.C/18-2-07-56/07T.C. dated June 4, 2007 and all subsequent Government Orders, notifications or policy statements issued and actions taken in relation to disinvestment, privatization, sale, transfer in any form or closure of the scheduled undertakings or sugar mills of the Corporation and its subsidiaries or in relation to the Corporation itself shall stand validated.




S.5 Duty to deliver possession

(1) Where any scheduled undertaking has vested in the Corporation under Section 3, every person in whose possession or custody or under whose control any property or asset, book of account, register or other document comprised in that undertaking may be, shall forthwith deliver the same to the Collector.

(2) The Collector may take all necessary steps for securing possession of any such property or asset, book of account, register or document, and in particular, may use or cause to be used such force as may be necessary.

(3) The Collector shall prepare an inventory of all properties, assets, book of account, registers and documents taken possession of under this section, so far as practicable in the presence of the occupier or his authorised representative.

(4) Delivery of possession to the Collector under this section shall amount to delivery of possession to the Corporation.

(5) Without prejudice to the provisions of the foregoing sub-section


S.6 Duty to furnish particulars

The occupier of every scheduled undertaking shall, within sixty days from the appointed day or within such further time as the Corporation may allow in this behalf, furnish to the Corporation or to such officer as the Corporation may specify, complete particulars of all liabilities and obligations incurred on the security of the undertaking and subsisting on the appointed day and also of all agreements and other instruments pertaining to the scheduled undertaking (including agreements, decrees, awards, standing orders and other instruments relating to leave, pension, gratuity, provident fund and other terms of service of any person employed in that undertaking), in force immediately before the appointed day, and the Corporation shall afford him all reasonable facilities for this purpose.




S.4 Certain consequences of vesting

Notwithstanding anything contained in any other law for the time being in force, and save as otherwise provided in this Act, on and from the appointed day-

(i) every appointment of Receiver over any scheduled undertaking by any Court shall cease;

(ii) every lease or other arrangement where under any scheduled undertaking or the management thereof has been transferred to any person shall cease to have effect;

(iii) every attachment, injunction or any other order of a court restricting or restraining the use of any scheduled undertaking or prescribing a scheme of management in respect thereof howsoever described, shall cease to have effect.




S.7 Determination and mode of payment of compensation

(1) (a) Subject to the provisions of Clauses, (b) and (c), the State Government shall pay as compensation for any sugar stocks comprised in a scheduled undertaking their value, which shall be calculated at the ex-factory market price prevailing immediately before the appointed day, minus basic excise duty and additional excise duty in lieu of sales-tax, leviable thereon.

(b) Such sugar stocks shall be disposed of from time to time (if necessary, by arrangement with any bank which has made advances before the appointed day on the security thereof), and as and when the stocks are disposed of, so much of the said composition as relates to the quantity disposed of shall be paid in cash by deposit with the prescribed authority in accordance with the provisions of sub- sections (6) and (9).

(c) Out of the said compensation the amount of any advance or, as the case may be, proportionate amount of advance,made on the security of the quantity disposed of togeth