The UTTAR PRADESH PUBLIC MONEYS (RECOVERY OF DUES) ACT, 1972

Uttar Pradesh · state statute

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THE UTTAR PRADESH PUBLIC MONEYS (RECOVERY OF DUES)
ACT, 1972
[ U. P. ACT No. 23 of 1972 ]
Amended by
U.P. Act No. 17 of 1975
U.P. Act No. 6 of 1992
[As passed by the Uttar Pradesh Vidhan Mandal, assented to
by the President on April 28, 1972 and published in U.P. Gazette
extraordinary on May 1, 1972]
AN
ACT
to provide, with retrospective effect, for the speedy
recovery of certain classes of dues payable to the State
Government or to the Uttar Pradesh Financial Corporation or any
other corporation notified by the State Government in that behalf
or to any nationa lized or other Scheduled Bank or to a
Government Company, and to validate certain acts done and
proceedings taken in the past, and to provide for matters
connected therewith.
IT IS HEREBY enacted in the Twenty-Third Year of the
Republic of India as follows :–
Short title,
extent and
commencement
1. (1) This Act may be called the Uttar Pradesh Public Moneys
(Recovery of Dues) Act, 1972.
(2) It extends to the whole of Uttar Pradesh.
(3) This section and sections 2 to 5 shall be deemed to have
come into force on December 4, 1965.
Definitions 2. 1[***] In this Act unless the context otherwise requires,—
(a) ‘‘Corporation’’ means the Uttar Pradesh Financial
Corporation established under the State Financial Corporation
Act, 1951, and includes any other Corpor ation owned or
controlled by the Central Government or the State Government
and specified in a notification issued in that behalf by the State
Government in the official Gazette ;
(b) ‘‘financial assistance’’ means any financial assistance,–
(i) for establishing, expanding, modernising, renovating
or running any industrial undertaking ; or
(ii) for purposes of vocational training; or
(iii) for the development of agriculture, horticulture,
animal husbandry or agro-industry ; or

1. Omitted and renumbered by sec. 2 of U.P. Act No. 17, 1975.
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[The Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972]

(iv) for purposes of any other kind of planned
development ; or
(v) for relief against distress ;
(c) ‘‘Government Company’’ means a Government Company
as defined in section 617 of the Companies Act, 1956 ;
(d) ‘‘Industrial concern’’ has the meaning assigned to the
expression in the State Financial Corporatio n Act, 1951, as
amended from time to time ;
(e) ‘‘Industrial undertaking’’ includes any undertaking for
the manufacture, preservation, storage or processing of goods, or
mining, or the hotel industry, o r the transport of passengers or
goods, or the generation or distribution of electricity or any other
form of power, or for the development of any contiguous area of
land as an industrial estate;
Explanation—The expression ‘‘processing of goods’’
includes any art or process for producing, preparing or mak ing
an article by subjecting any material to a manual, mechanical,
chemical, electrical or any other like operation ;
(f) ‘‘banking company’ means the State Bank of India,
constituted under the State Bank of India Act, 1955, a subsidiary
bank as defined in the State Bank of India (Subsidiary Banks)
Act, 1959, a corresponding new bank constituted under the
Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970, or a banking company as defined in the Banking
Regulation Act, 1949 ; 1[or a fin ancing bank or Central Bank as
defined in the Uttar Pradesh Co-operative Societies Act, 1965 not
being a land development bank.] ;
(g) ‘‘State-sponsored scheme’’ means a scheme sponsored by
way of financial assistance by the State Government under which
the State Government either advance money to a banking
company or a Government company for the purpoe of disbursing
loans, advances or grants or for purpose of sale of goods on credit
or hire -purchase or guarantees or agrees to guarantee the
repayment of a loan, advance or grant or the payment of the price
of goods sold on credit on hire purchase 2[and includes any other
scheme of financial assistance, by a banking company or a
Government company, which is declared to be a State -sponsored
scheme by the State Government by notification in the Gazette.]
Recovery of
certain dues as
arrears of land
revenue
3. (1) Where any person is party—
(a) to any agreement relating to a loan, advance or grant
given to him or relating to credit in respect of, or relating to hi re
purchase of, goods sold to him by the State Government or the
Corporation, by way of financial assistance ; or

1. Ins. by sec. 2 (i) of U.P. Act No. 17 of 1975.
2. Ins. by sec. 2(ii) of U.P. Act No. 17 of 1975.
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[The Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972]
(b) to any agreement relating to a loan, advance or grant
given to him or relating to credit in respect of, or relating to hire-
purchase of, goods sold to him, by a banking company or a
Government company, as the case may be, under a State -
sponsored scheme; or
(c) to any agreement relating to a gurantee given by the
State Government or the Corporation in respect of a loan raised
by an industrial concern; or
(d) to any agreement providing that any money payable
thereunder to the State Government 1[or the Corporation] shall
be recoverable as arrears of land revenue; and such person–
(i) makes any default in repayment of the loan or
advance or any instalment thereof; or
(ii) having become liable under the conditions of the
grant to refund the grant or any portion thereof, makes any
default in the refund of such grant or portion or a ny
instalment thereof ; or
(iii) otherwise fails to comply with the terms of the
agreement,–
then, in the case of State Governmen t, such officer as
may be authorized in that behalf by the State Government
by notification in the official Gazette, and in the case of the
Corporation or a Government company the Managing
Director 2[or where there is no Managing Direct or then the
Chairman of the Corporation, by whatever name called] 3[or
such owner of the Corporation or Government Company as
may be authorized in that behalf by the Managing Director
or the Chairman] thereof, and in the case of a banking
company, the local agent thereof, by whatever name called
may send a certificate to the Collector, mentioning the sum
due from such person and requesting that s uch sum
together with costs of the pro ceedings be recovered as if it
were an arrear of land revenue.
(2) The Collector on receiving the certificate shall proceed to
recover the amount stated therein as an arrear of land revenue.
(3) No suit for the recovery of any sum due as aforesaid shall lie
in the civil court against any person referred to in sub-section (1).
4[(4) In the case of any agreement referred to in sub -section (1)
between any person referred to in that sub -section and the State
Government or the Corporation, no arbitration proceedings shall lie at
the instance of either party for recovery of any sum claimed to be due
under the said sub -section or for disputing
the correctness of such
claim :
1. Ins. by sec. 3(1)(a) of U.P. Act No. 17 of 1975.
2. Ins. by sec. 3(1)(b) of U.P. Act No. 17 of 1975.
3. Ins. by sec. 2 of U.P. Act No. 6 of 1992.
4. Ins. by sec. 3(ii) of U.P. Act No. 17 of 1975.
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[The Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972]
Provided that whatever proceedings are taken against any
person for the recovery of any such sum he may pay the amount
claimed under protest to the officer taking such proceedi ngs, and upon
such payment the proceedings shall be stayed and the person against
whom such proceedings were taken may make a reference under or
otherwise enforce an arbitration agreement in respect of the amount so
paid, and the provisions of section 183 of the Uttar Pradesh Land
Revenue Act, 1901, or section 287- A of the Uttar Pradesh Zamindari
Abolition and Land Reforms Act, 1950, as the case may be, shall
mutatis mutandis apply in relation
to such reference or enforcement as
they apply in relation to any suit in the civil court.
(5) Save as otherwise expr essly provided in the provisions to
sub-section (4) of this section or in section 183 of the U.P. Land
Revenue Act, 1901 or section 287- A of the Uttar Pradesh Zamindari
Abolition and Land Reforms Act, 1950 every certificate sent to the
collector under sub-section (1) shall be final and shall not be called in
question in any original suit, application (including any application
under the Arbitration Act, 1940) or in any reference to arbitration, and
no i njunction shall be granted by any court or other authority in
respect of any action taken or intended to be taken in pursuance of any
power conferred by or under this Act.]1
Savings 4. (1) Nothing in section 3, shall–
(a) affect any interest of the Stat e Government, the
Corporation, a Government company or any banking company,
in any property created by any mortgag
e, charge, pledge or
other encumbrance; or
(b) bar a suit or affect any other right or remedy against any
person other than a person referred to in that section, in respect
of a contract of indemnity or guarantee entered into a relation to
an agreement referred to in that section or in respect of any
interest referred to in clause (a).
(2) Where the property of any person referred to in sec tion 3 is
subject to any mortgag e, charge, pledge or other encumbrance in
favour of the State Government, the Corporation a Government
company or banking company, then–
(a) in every case of a pledge of goods, proceedings shall first
be taken for sale of the t hing pledged, and if the proceeds of
such sale are less than the sum due, then proceedings shall be
taken for recovery of the balance as if it were an arrear of land
revenue ;

1. Ins. by sec. 3(ii) of U.P. Act No. 17 of 1975.
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[The Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972]
Provided that where the State Government is of opinion that
it is necessary so to do for safeguarding the recovery of the sum
due to it or to the Corporation, Government company or
banking company, as the case may be, it may for reasons to be
recorded, direct proceedings to be taken for recovery of the sum
due, as if it were an arrear of land revenue before or at the same
time as proceedings are taken for sale of the thing pledged ;
(b) in every case of a mortgage, charge or other
encumbrance on immovable property, such property o r, as the
case may be, the interest of the defaulter therein, shall first be
sold in proceedings for recovery of the sum due from that
person as if it were an arrear of land revenue, and any other
proceeding may be taken thereafter only if the Collector ce rtifies
that there is no prospect of realization of the entire sum due
through the first mentioned process within a reasonable time.
Repeal 5. The Public Moneys (Recovery of Dues) Act, 1965, is hereby
repealed.
Validation 6. Notwithstanding the repeal of the Public Moneys (Recovery of
Dues) Act, 1965, by section 5, and notwithstanding any judg ement,
decree or order of any court or tribunal, any action taken or purported
to have been taken, or anything done or purported to have been done
between December 4, 1965 and the commencement of this Act, by the
State Government or by the Corporation or a Government company or
the State Bank of India or other scheduled bank, or by any officer of the
State Government or of such corporation, company o r bank, or by any
Collector or other revenue official or by a Receiver appointed or
purpoted to have been appointed by the Collector, including any
notification issued, certificate issued or sent, appointment of Receiver
made or other proceedings taken for recovery of any amount as an
arrear of land revenue under or in pursuance of the said Act shall in so
far as it is not inconsistent with this Act be deemed to be valid and to
have been taken or done under or in pursuance of the corresponding
provisions of this Act.
Repeal 7. The Uttar Pradesh Public Moneys (Recovery of Dues)
Ordinance, 1972 is hereby repealed.

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