The UTTAR PRADESH REGULATION OF COLD STORAGES ACT, 1976

  
 THE UTTAR PRADESH REGULAITON OF COLD STORAGES 
ACT, 19761 
[U. P. ACT No. XI of 1976] 
 Amended by 
U. P. Act No. 17 of 1983 
U. P. Act No. 02 of 1997 
 [Passed in Hindi by Uttar Pradesh  Legislative Assembly on 
April 6, 1976 and the Uttar Pradesh Legislative Council on April 7, 
1976. 
Received the assent of the Governor on April 16 , 19 76, 
under Article 200 of the C onstitution of India and was published 
in the Uttar Pradesh Gazette Extraordinary , dated April  19, 
1976.] 
 AN 
ACT 
 to provide for the licensing, supervision, and control of cold 
storages in Uttar Pradesh and for matters connected therewith 
IT IS HEREBY enacted in the Twenty-seventh Year of the Republic 
of India :— 
 CHAPTER  I 
PRELIMINARY 
Short title, 
extent and 
commencement 
1. (1) This Act may be called the Uttar Pradesh Regulation of 
Cold Storages Act, 1976. 
(2) It extends to the whole of Uttar Pradesh.  
 (3) It shall be deemed to have come into force on September 20, 
1975. 
Definition 2. In this Act, unless the context otherwise requires— 
(a) “agricultural produce” includes products of agriculture or 
horticulture, animal husbandry o r pisciculture and all articles of food 
or drink wholly or partly made from any of them ;  
 (b) “Board” means the Cold Storages Advisory Board 
constituted under section 3 ;  
(c) “cold storage” means an enclosed chamber insulated and 
mechanically cooled by  refrigeration machinery to provide refrigerated 
condition to agricultural produce stored therein, but does not include 
refrigerated cabinets and chilling plants having a capacity of less than 
100 cubic metres ; 
 
1. For Statement of Objects and Reasons please see Gazette Extraordinary, dated April 8, 1976. 
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[The Uttar Pradesh Regulation of Cold Storages Act, 1976]  
 (d) “hirer” means a person who on payment hires space in a 
cold storage for storing agricultural produce ;  
(e) “licence” means a licences granted under this Act ;  
 (f) “licensee” means any person to whom a licence is granted 
under this Act ; 
(g) “Licensing Officer” means the Director of Horticulture and 
Fruit Utilization, Uttar Pradesh and, except in the Exp lanation to 
section 17 includes empowered by the Director of Horticulture and 
Fruit Utilization in his behalf to exercise some or all of  the powers of 
the Licensing Officer under this Act ; 
 (1) any other officer of the Horticulture Department, not below 
the rank of a District Horticulture Officer ;  
(2) an officer of the Revenue Department, not below the rank of 
a Sub-Divisional Officer,   
 (h) “prescribed” means prescribed by rules made under this 
Act; 
(i) “receipt” means a cold storage receipt including a duplicate 
receipt issued by a licensee under this Act ;  
(j) “Tribunal” means the Tribunal constituted under section 35. 
 CHAPTER  II 
COLD STORAGE ADVISORY BOARD 
Constitution 
of the Board 
3. The State Government shall, by notification, constitute a 
Cold Storage Advisory Board, which shall consist of the following 
members, namely :— 
 (a) The Agricultural Production Commissioner, Utta r Pradesh 
who shall be the Chairman of the Board ;  
(b) A representative of the Agricultural Marketing Advisor to the 
Government of India ; 
 (c) The Director of Industries, Uttar Pradesh ;  
(d) The Registrar, Co-operative Societies, Uttar Pradesh ;  
(e) The Director of Mandis, Uttar Pradesh, Lucknow ; and 
 (f) The Director of Horticulture and Fruit Utilization, Uttar 
Pradesh who shall also act as Secretary. 
Duties and 
functions of 
the Board 
4. (1) The Board shall discharge the following duties and 
functions, namely :— 
(a) to advise the State Government on policy matters relating to 
the licensing of cold storages and matters connected therewith ;  
 
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[The Uttar Pradesh Regulation of Cold Storages Act, 1976]  
 (b) to make suggestions to the State Government in respect of 
scientific planning, maintenance, development and expansion  of cold 
storage facilities in the State ;  
 (c) to advise the State Government in the matter of fixation, 
from time to time, of maximum charges for storing agricultural 
produce in the cold storage ; and  
 (d) to advise the State Government on such other  matters as 
may be referred to the Board by the State Government, or as may be 
prescribed. 
(2) The business of the Board shall be conducted in such 
manner as may be prescribed. 
 CHAPTER  III 
LICENSING OF COLD STORAGES 
Restrictions 
on carrying 
on the 
business of 
cold storage 
5. On and after such dates as the State Government may, by 
notification appoint in that behalf, no person shall carry on the 
business of storing any agricultural produce in a cold storage except 
under and in accordance with the terms and conditions of a licence 
granted under this Act. 
Application 
for licence 
6. (1) Every application for a licence under this Act shall be 
made in the prescribed form to the licensing Officer and shall be 
accompanied by the prescribed fee.  
 (2) No licenc e under this Act shall be granted, if it appears to 
the Licensing Officer that — 
(a) the cold storage does not confo rm to the prescribed 
specifications ;  
 (b) the cold storage is not suitable for storage of the class of 
goods for which it is intended ;  
(c) the application is not accompanied by the prescribed fee ; 
 (d) the applicant is guilty of any fraud or misrepresentation ;  
(e) the applicant has been convicted of any offence under this 
Act, or the rules made thereunder. 
Terms and 
renewal of 
licence 
7. (1) A licence granted under section 6 shall be valid for such 
period, as may be prescribed, and may on application made in that 
behalf and upon payment of the prescribed fees, be renewed, from time  
 to time, by the Licensing Officer for such further  period as may be 
prescribed. 
 (2) No licence granted under this Act shall be renewed if it 
appears to the Licensing Officer that— 
(a) any of the grounds mentioned in sub -section (2) of section 6 
exists ;  
 
 
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[The Uttar Pradesh Regulation of Cold Storages Act, 1976]  
 (b) the licensee is guilty of breach of the provisions of this Act 
or the rules made thereunder ;  
(c) that the application involves a breach of any direction issued 
by the State Government under section 44. 
Suspension 
and 
cancellation 
of a license 
8. (1) A licence granted under this Act, may be suspended or 
cancelled, if it appears to the Licensing Officer that — 
(a) any of the grounds mentioned in sub -section (2) of section 7 
exists ;  
 (b) the licence has parted wholly or partly with the possession 
or control of the cold storage or that he has ceased to run it.  
 (2) Where any licence is suspended or cancelled, the licensee 
shall not be entitled to any compensation theref or nor he shall be 
entitled to any refund of any fee paid by him for the licence.  
Permission 
for 
construction 
of a new cold 
storage 
9. (1) No person shall construct any new cold storage without 
obtaining prior permission from the Licensing Officer, for s uch 
construction.  
(2) Every application for permission under sub- section (1) shall 
be made in the prescribed form to the Licensing Officer and shall be 
accompanied by the prescribed fee.  
 (3) The Licensing Officer shall, while granting the permission 
under sub-section (1), have regard to — 
(a) the number of cold storages operating in the area in which 
the cold storage is sought to be constructed ;  
 (b) availability of agricultural produce in such area ;  
(c) any other matter which may be prescribed. 
 (4) The Licensing Officer may, while granting permission under 
sub-section (1), impose such conditions as he may consider necessary.  
Orders to 
contain 
reasons 
10. (1) Every order refusing to grant the licence under  
section 6, or refusing to renew the li cence under section 7, or 
suspending or cancelling the licence under section 8, or refusing 
permission under section 9, shall be in writing and shall contain the 
reasons in support thereof.  
 (2) Before making an order referred to in sub -section (1), the 
Licensing Officer shall give the licensee or the applicant, as the case 
may be a reasonable opportunity of being heard :  
 Provided that when immediate action is required in public 
interest, the Licensing Officer may, for reasons to be recorded, suspend 
a licence without any notice under this section.  
Duplicate 
licence 
11. Where a licence is lost, destroyed, torn, defaced, or 
otherwise becomes illegible, the Licensing Officer shall in the manner 
prescribe and on payment of the prescribed fee, issue a dup licate 
licence.  
 
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[The Uttar Pradesh Regulation of Cold Storages Act, 1976]  
 CHAPTER  IV 
RIGHTS AND DUTIES OF A LICENSEE 
Reasonable 
care of goods 
deposited 
12. Every licensee shall take such care of the goods stored in 
his cold storage as a man of ordinary prudence would take of his own 
goods under similar circumstances and conditions. 
Duty to 
exhibit 
capacity of 
the cold 
storage 
13. Every licensee shall, before the commencement of business 
every day, display and exhibit in the prescribed manner on or near the 
main entrance of cold storage the following informatio n in respect of 
the cold storage :— 
 (a) total capacity of cold storage (both in area and tonnage) ; 
(b) capacity physically occupied (both in area and tonnage) ;\ 
(c) vacant capacity (both in area and tonnage). 
Acceptance 
of goods for 
deposit 
14. (1) No licensee shall accept for storage, agricultural produce 
which is likely to cause damage to other agricultural produce which is, 
or may be stored in the cold storage and if any question arises whether 
any agricultural produce is such as is likely to cause damage as 
aforesaid, it shall be referred to the Licensing Officer  whose decision 
shall be final :  
 Provided that a licensee shall not refuse to store potato seed of 
bona-fide cultivators, so certified in the presc ribed form and manner 
by a Gazette d Officer of Horticulture Department or a Block 
Development Officer, as the case may be, on the ground that it is likely 
to cause damage to other agricultural produce.  
 (2) Subject to the provisions of sub -section (1), no licensee shall 
refuse to accept agricu ltural produce for storage in his cold storage 
without any lawful excuse.  
 Explanation—The refusal to accept any agricultural produce 
on the ground that the space in the enclosed chamber, though 
physically vacant, is booked in favour of any other person,  shall not be 
deemed to be a “lawful excuse” within the meaning of this section. 
Preservation 
of identity of 
goods 
15. Every licensee shall keep in his cold storage the 
agricultural produce of one hirer separate from such produce of other 
hirer and from o ther produce of the same hirer for which a separate 
receipt has been issued, so as to permit at all times the identification 
and easy delivery thereof :  
 Provided that where standardized and graded goods are stored 
in the cold storage, the same variety o f goods belonging to the same or 
different hirer may, subject to  any contract to the contrary, be pooled 
together and each hirer  shall be entitled only to his portion of the 
goods according to weight or quantity as the case may be, as shown in 
his receipt,  less any driage or shrinkage up to the limit fixed under 
Explanation to section 17. 
 
 
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[The Uttar Pradesh Regulation of Cold Storages Act, 1976]  
License to 
allow 
facilities for 
the hirer to 
inspect goods 
16. Every licensee shall allow, during such hours as the 
Licensing officer may by order direct, necessary facilities to a hirer or 
his nominee to inspect and satisfy himself that his goods are properly 
cared for.  
Goods 
deterioration 
in cold 
storage and 
their disposal 
17. (1) Whenever goods stored in a cold storage begin to 
deteriorate or are likely to deteriorate from a cause beyond the control 
of the licensee, or where the hirer fails to take delivery of the goods 
stored in the cold storage within  a period of fifteen days from the date 
specified therefor in the receipt, the Licensee shall forthwith give notice 
thereof to the hirer, requiring him to take delivery of the goods 
immediately after surrendering the receipt duly discharged and paying 
all charges due to the licensee, and send a copy of such notice to the 
Licensing Officer.  
 (2) Where the hirer fails to comply with the notice referred to in 
sub-section (1) within a period of seven days from the date of service 
thereof, the licensee may cau se the goods to be removed from the cold 
storage and sold by public auction at the cost and risk of their hirer :  
 Provided that the licensee shall give notice of the sale to the 
Licensing Officer at least forty -eight hours before such sale, and the 
Licensing Officer shall supervise such sale either himself or through an 
officer authorized by him in that behalf.  
 Explanation—Loss of weight or bulk by driage or shrinking or 
gain of weight or bulk by absorption of moisture shall be deemed to 
amount do det
erioration within the meaning of this section, if the loss 
or gain exceeds such limits as the Licensing Officer may, from time to 
time, having regard to the climatic conditions of different areas, fix by 
notification published in the Gazette. 
 (3) If ther e is any excess in the weight or bulk an agricultural 
produce stored in a cold storage by absorption of moisture or other 
causes, the licensee shall not be entitled to such excess.  
Intimation 
regarding 
condition of 
goods 
18. Any person having an interest in any goods stored in a cold 
storage or in the receipt covering such goods may inform the licensee 
in writing of the fact and nature of his interest and the licensee shall 
keep a record thereof and if such person requests in writing that 
intimation be given to him regarding the condition of goods and agrees 
to pay the prescribed charges for giving such intimation, the licensee 
shall be bound to give him intimation accordingly.  
Deliver of 
goods 
19. (1) Every licensee shall on demand made by or on behalf of 
the hirer, deliver the goods stored in the cold storage provided the hirer 
surrenders the receipt and pays all charges due to the licensee.  
(2) Every receipt so surrendered to the licensee shall be defaced 
and shall not be re-issued.  
 (3) Subject to an agreement between the parties, the hirer may 
take partial delivery of the goods stored in a cold storage and in every  
 
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[The Uttar Pradesh Regulation of Cold Storages Act, 1976]  
 such case, the licensee shall make necessary endorsement on  the 
receipt and return it to the hirer. 
Licensee’s 
lien 
20. Every licensee in possession of the goods in his cold storage 
is entitled to retain possession thereof until the receipt therefor is 
surrendered and necessary charges are duly paid in accordance with 
section 19. 
Licensee not 
to pledge or 
deal in the 
goods in cold 
storage 
without the 
authority of 
the hirer 
21. No licensee shall, except with the written authority of the 
hirer, pledge or otherwise deal in goods received by him for storage in 
the cold storage.  
Rate of 
interest on 
loan a hirer 
22. If any money is lent by the licensee to a hirer against the 
goods stored by some hirer in the cold storage, the rate of interest, in 
no case, shall be higher than one- half of one per cent per annum 
simple interest over the current rate of interest charged by the State 
Bank of India, at the time of the loan, for like purposes in respect of 
advances made by it against goods pledged in its favour. 
Insurance 23. Every Licensee shall insure the agricultural pro duce stored 
in his cold storage against less or damage by fire, breakdown (whether 
mechanical or otherwise) or such other like cause. 
Compensa-
tion for loss, 
destruction, 
etc. 
24. Except as otherwise provided in this Act the licensee shall 
be liable to pa y to the hirer compensation for every loss, destruction, 
damage, deterioration or non -delivery of the goods stored in his cold 
storage caused by the negligence, misconduct or 
Dispute 
regarding 
compensa-
tion to be 
referred to 
the Licensing 
Officer 
25. (1) Every dispute regarding compensation payable by the 
licensee under section 24 shall be referred to the Licensing Officer, and 
subject to the result of appeal, if any, under section 36, the order of 
the Licensing Officer shall be final.  
(2) When the Licens ing Officer is satisfied that any 
compensation payable by a licensee under sub-section (1) has not been 
paid within thirty days from the date of the order under sub -section (1) 
or, as the case may be, from the date of the decision of the Tribunal 
under sec tion 36, he shall issue a certificate of recovery to the 
Collector, and the Collector shall recover the amount of such 
compensation together with costs of recovery as arrears of land revenue 
and pay the amount realized, after deduction of costs, to the hirer. 
Prohibition 
from 
recovery of 
excess 
amount 
26. No licensee shall take or receive, for storage or any other 
service rendered to the hirer, any amount over and above 1[the charges 
fixed under section 29]. 
 
 
 
1.  Subs. by sec. 2 of U. P. Act no. 02 of 1997. 
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[The Uttar Pradesh Regulation of Cold Storages Act, 1976]  
Licensee to 
maintain 
account 
books 
27. Every licensee shall maintain account books and records in 
such form and manner as may be prescribed.  
Power of 
Licensing 
Officer to 
issue 
directions 
28. Every licensee shall be bound to comply with such 
directions of the Licensing Officer under thi s Act as may be issued by 
him from time to time for carrying out the purposes of this Act.  
 CHAPTER  V 
Service Charges 
Maximum 
charges 
1 [ 29. (1) Every licensee shall, from time to time, fix the 
maximum charges for storing agricultural produce in the co ld storage 
or for any other service rendered in connection therewith, and different 
charges may be fixed for different agricultural produce.  
 (2) Every licensee shall display and exhibit on or near the main 
entrance of the cold storage the charges fixed under sub -section (1), 
and shall also delivers copy thereof in the office of the Licensing 
Officer. 
 (3) If the State Government is of the opinion that the charges 
fixed by a licensee under sub -section (1) are unreasonably high, then 
notwithstanding the p rovisions of sub- section (1), the State 
Government may, by a notified order, fix the maximum charges for the 
purposes of sub -section (1) with respect of such licensee and the 
charges to fixed by the State Government shall be effective for the 
remaining part of the financial year in which they are fixed. ] 
 30.  2[  X  X  X  X  ] 
Board’s 
report to be 
considered 
31. Where a Board has been constituted under section 3, the 
State Government shall consider its report before fixing the 3[charges 
under sub-section (3) of section 29]. 
 CHAPTER  VI 
Cold Storage Receipt 
Duty to issue 
receipt 
32. Every licensee shall issue, in the form prescribed, a receipt 
for the agricultural produce stored in his cold storage.  
Cold storage 
receipt  
transferable 
by 
endorsement 
and delivery 
33. The receipt referred to in section 32, shall, unless it is 
otherwise specified therein be transferable by endorsement and 
delivery and shall entitle the holder in due course to receive the goods 
specified in it as if he was the original hirer. 
 
 
 
 
1.  Subs. by sec. 3 of U. P. Act no. 02 of 1997. 
2.  Omit. by sec. 4 of U. P. Act no. 02 of 1997. 
3.  Subs. by sec. 5 of U. P. Act no. 02 of 1997. 
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[The Uttar Pradesh Regulation of Cold Storages Act, 1976]  
Duplicate 
receipt 
34. If a receipt is lost, destroyed, torn, defaced, or otherwise 
becomes illegible, the licensee shall, on an application m ade by the 
hirer and upon payment of the prescribed fee, issue a duplicate receipt 
subject to such conditions, if any, as may be prescribed.  
 CHAPTER  VII 
Tribunal 
Constitution 
of Tribunal 
35. There shall be a Tribunal consisting of the following 
members, namely :— 
(a) the Agricultural Marketing Adviser to the Government of 
India, who shall be the Chairman ;  
 (b) the Legal Remembrancer to the Government of Uttar 
Pradesh or an Officer of his department nominated by him not below 
the rank of Joint Legal Remembrancer ;  
 (c) the Secretary to the Government in the Agriculture 
Department or an officer of that department nominated by him not 
below the rank of Joint Secretary.  
Appeal 36. Any person aggrieved by an order of the Licensing Officer 
refusing to grant a licence under sub -section (2) of section 6, or 
refusing to renew it under sub-section (2) of section 7 or suspending or 
cancelling it under sub -section (1) of section 8, or refusing permission 
under section 9, or deciding a dispute referred to in sub -section (1) of 
section 14 or in sub- section (1) of section 25, may prefer an appeal to 
the Tribunal within thirty days from the date of communication of 
such order, and the decision of the Tribunal thereon shall be final.  
 CHAPTER  VIII 
Penalties and Procedure 
Penalty 37. Whoever contravenes any provision of this Act or any rule, 
order or direction made thereunder shall on conviction be punishable 
with imprisonment for a term which may extend to two years or with 
fine which may extend to ten thousand rupees or with both.  
Offences by 
companies 
38. (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 commis sion of the offence shall be deemed to be guilty of the 
offence and shall be liable to be proceeded ag ainst 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 
the diligence to prevent the commission of such offence.  
 (2) Notwithstanding anything contained in sub -section (1), 
where  any  offence  under  this Act has been committed by a company  
 
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[The Uttar Pradesh Regulation of Cold Storages Act, 1976]  
 and it is prov ed that the offence has been committed with the consent 
or connivance of, or that the commission of the offence is attributable 
to any neglect on the part of any managing agent, secretary, treasurer, 
director, manager or other officer of the company, such managing 
agent, secretary, treasurer, director, manager or other officer of the 
company shall also be deemed to be guilty of that offence and shall be 
liable to be proceeded against and punished accordingly. 
 Explanation—For the purpose of this section— 
(a) “company” means anybody corporate, and include a firm or 
other association of individuals ; and  
(b) “director” in relation to a firm, means a partner in the firm. 
Cognizance 
of offence 
39. (1) Every offence punishable under this Act shall be 
cognizable. 
(2) No court inferior to that of a Magistrate of the first class 
shall try any such offence. 
 CHAPTER  IX 
Miscellaneous 
Power of 
Licensing 
Officer 
40. The Licensing Officer may— 
(a) require any licensee to furnish such information as he may 
specify in respect of the cold storage owned or run by such licensee ;  
 (b) enter upon and inspect or cause to be inspected any cold 
storage, its machinery and equipment, goods stored therein, and the 
account books and records relating thereto, for the purpose of 
satisfying himself that the requirements of this Act and the rules made 
thereunder are being complied with ;  
 (c) collect samples of agricultural produce stored in any cold 
storage and get them analyzed, examined or tested in any laboratory 
selected for the purpose.  
Protection of 
acts in good 
faith 
41. (1) No suit, prosecution or other legal proceeding shall lie 
against any person for anything which is in good faith done or 
intended to be done under this Act or the rules made thereunder.  
 (2) No suit or other legal proceeding shall lie against the State 
Government 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 or 
the rules made thereunder. 
Savings as to 
orders 
42. No order mad e in exercise of any power conferred by or 
under this Act, shall be called in question in any court. 
Effect of Act 
and Rules, 
etc., 
inconsistent 
with other 
enactments 
and 
instruments  
43. The provision of this Act or any rule made thereunder shall 
have effect notwithstanding anything inconsistent therewith contained 
in any enactment other than this Act or in any contract, or in any 
other instrument having effect by viture of any enactment other than 
this Act.   
 
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[The Uttar Pradesh Regulation of Cold Storages Act, 1976]  
Direction by 
State 
Government 
44. In the discharge of his duties under this Act, the Licensing 
Officer shall carry out such directions of the State Gove rnment on 
matters of policy as may be issued by the State Government from time 
to time suo moto or on the advice of the Board. 
 44-A.  1[  X  X  X  X  ] 
Rules 45. (1) The State Government may, by notification in the 
Gazette, make rules for carrying out the purposes of this Act, including 
any rules prescribing fees in respect of any proceeding under this Act. 
 (2) Al rules made under 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 thirty days comprised 
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 modifi cations 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.  
Repeal and 
savings 
46. (1) The Uttar Pradesh Regulation of Cold Storages 
Ordinance, 1976, is hereby repealed. 
U. P. 
Ordinance 7 
of 1976 
(2) Notwithstanding such repeal or the repeal of the Uttar 
Pradesh Regulation of Cold Stora ges Ordinance, 1975 by the 
Ordinance mention ed in sub -section (1) anything done or any action 
taken under the said Ordinances shall be deemed to have been done or 
taken under the corresponding provisions of this Act as if this Act were 
in force at all material times. 
 
————
1.  Omit. by sec. 6 of U. P. Act no. 02 of 1997. 
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