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The uttar pradesh sugar undertakings (acquisition) act, 1971

Uttar Pradesh · state statute
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THE UTTAR PRADESH SUGAR UNDERTAKING (ACQUISITION) 
ACT, 19711 
(U. P. ACT No. 23 of 1971) 
Amended by 
U. P. Act No. 20 of 1985 
U. P. Act No. 30 of 1989 
U. P. Act No. 03 of 2009 
[Authoritative English Text of the Uttar Pradesh Chini 
Upakran (Arjan) Adhiniyam, 1971]  
[Passed in Hindi by the U ttar Pradesh Legislative Assembly 
on August 16, 1971, and the Uttar Pradesh  Legislative Council on 
August 18, 1971. 
Received the Assent of the President on August 22, 19 71 
under Article 201 of the Constitution of India and  was published 
in the Uttar P radesh Gazette, Extraordinary,  dated August 22, 
1971.] 
AN 
ACT 
to provide in the interests of the general public, for the acquisition 
and transfer of certain sugar undertakings, and for matters connected 
therewith or incidental thereto.  
S
hort title 
IT IS HEREBY enacted in the Twenty -second Year of the Republic 
of India as follows :— 
1. This Act may be called the U ttar Pradesh Sugar
Undertakings (Acquisition) Act, 1971. 
Definition 2. In this Act, unless the context otherwise requires—
2[ (a) “ Appointed day” in relation to the undertakings spe cified 
in Schedule I 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 authori zed 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 ; 
(d) “occupier” in relati on to a schedule undertaking, means the 
person who immediately before the appointed day had the ultimate 
control over the affairs of the undertaking ; 
1. For Statement of Objects and Reasons,  please see Uttar Pradesh Gazette (Extraordinary), dated August 16,
1971. 
2. Subs. by sec. 2 (a) of U. P. Act no. 30 of 1989.
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[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971] 
(e) “persons interested”, in relation to a schedule d undertaking 
acquired under this Act, means all persons claiming an interest in 
compensation to be made on account of the acquisition of that 
undertaking, and includes a lessee of such undertaking ; 
(f) “prescribed” means prescribed by rules made under this Act; 
(g) “prescribed authority” means the prescribed authority 
appointed under section 10 ; 
(h) “scheduled undertaking” means an undertaking engaged in 
the manufacture or production of sugar by means of vacuum pans and 
with the aid of mechanical power  in a factory specified 1[in any of the 
Schedules to this Act] and comprises— 
(i) all plant, machinery and other equipment, (including milling 
plant, boiling house equipment, other sugar machinery, cane 
unloading equipment and power plant), weigh -bridges, cranes, 
chimneys, turbines and boilers (including the foundations, super -
structure and roofing thereof) pertaining to that factory ;  
(ii) any engineering workshop, including machinery and 
equipment thereof ;  
(iii) any chemical laboratory including an y apparatus and 
equipment thereof ;  
(iv) any motor or other vehicle or locomotive, or railway sidings 
pertaining to that factory ;  
(v) any dispensary or hospital or community or welfare centre 
exclusively for the benefit of workmen and other persons employed in 
that factory ;  
(vi) all lands (other than lands held or occupied for purposes of 
cultivation and grove lands) and buildings held or occupied for 
purposes of that factory (including buildings pertaining to any  of the 
properties and assets here inbefore specified, and guest houses and 
residences of directors managerial personnel, staff and workmen or of 
any other person as lessee or licensee, and any store-houses, molasses 
tanks, roads, bridges, drains, culverts, tube -
wells, water storage or 
distribution system and other civil engineering works), including any 
leasehold interest therein ;  
(vii) all limestone quarries pertaining to that factory, including 
any mining lease relating thereto ; 
(viii) all electrical installations (including any plan t or 
equipment for the generation or transmission of energy), telephone 
equipment, furniture and fixtures pertaining to that factory or to any 
property or asset hereinbefore specified ;  
1. Subs. by sec. 2 (b) of U. P. Act no. 30 of 1989.
2 
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[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
(ix) all tools, spare parts and stores pertaining to that factory ; 
(x) all fire-arms for the use of watch and ward staff employed in 
that factory ;  
(xi) all maps, plans, sections, drawings and designs pertaining 
to that factory ;  
(xii) all sugarcane, sugar in the process of manufacture or 
production, an stocks of sugar and molasses and all bagasse and press 
mud ;  
(xiii) all books of accounts, registers and other documents 
pertaining to that factory or to any property or asset hereinbefore 
specified, but does not include cash -in-hand, cash at bank advances 
towards any income or other tax, inves tments and book debts, or 
rights, liabilities and obligations respecting any other contract ;  
(i) “Tribunal” means the Tribunal constituted under section 12. 
Vesting 3. On the appointed day, every scheduled undertaking shall, by
virtue of this Act, sta nd 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 se
ction 7, in accordance with the 
provisions of that section, in substitution for the under-taking ;  
Provided further that a debt, mortgage, charge or other 
encumbrance or lien, trust or similar obligation created after the 
scheduled undertaking or any pr operty or asset comprised therein had 
been attached, or a receiver appointed over it, in any proceedings for 
realization of any tax or cess or other dues recoverable as arrears of 
revenue shall be void as against all claims for dues recoverable as 
arrears of revenue. 
1[3-A. 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.  
3-B. 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. 
1. Ins. by sec. 3 of U. P. Act no. 3 of 2009.
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[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
3-C. 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 re lation to land belonging to any 
sugar mill acquired or established by the Corporation or its 
subsidiaries at any time. 
3-D. The Government Order No. 1215S.C/18 -2-07-56/07T.C. 
dated June 4, 2007 and all subsequent Government Orders, 
notifications or polic y 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.  
Power to 
remove 
difficulties 
3-E.  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.] 
Certain 
consequences 
of vesting 
4. 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— 
(a) every appointment of Receiver over any scheduled 
undertaking by any court shall cease ;  
(b) every lease or other arrangement where under any 
scheduled under taking or the management thereof has been 
transferred to any person shall cease to have effect ;  
(c) 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. 
Duty to 
deliver 
possession. 
5. (1) Where any scheduled undertaking has ves ted 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.   
4 
[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
(3) The Collector shall prepare an inventory of all properties, 
assets, books of account, registers and documents taken possession of 
under this section, so far as practicable in the presence of the o ccupier 
or his authorized representative.  
(4) Deliver of possession to the Collector under this section 
shall amount to deliver of possession to the Corporation. 
(5) Without prejudice to the provisions of the foregoing sub -
sections, any person referred to in sub- section (1) shall be liable to 
account to the Corporation for any such property or asset, book of 
account, register or document which he has failed to deliver to the 
Collector.  
Duty to 
furnish 
particulars 
6 The occupier of every scheduled und ertaking shall, within 
sixty days from the appointed day or within such further time as the 
Corporation may allow in that 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.  
Determina 
tion and 
mode of 
payment of 
compensation 
7. (1) (a) Subject to the provisions of clauses (b) and (c), th e
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 compensation 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, the proportionate amount of advance, made on the 
security of the quantity disposed of toget her with interest and any 
other charges relating thereto payable under the terms of the advance, 
and storage and other incidental charges relating thereto payable to 
the Corporation or to any other person, shall be paid first, and the 
balance shall be depo sited as aforesaid with the prescribed authority 
and be paid to the persons entitled thereto in accordance with the 
decisions of that authority or of the Tribunal, as the case may be,  
5 
[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
under sub-section (9) or sub -section (12) or under section 8, section 9 
or section 11. 
U
. P. Act 
XXIV of 
1964. 
(2) The State Government shall pay as compensation for the 
acquisition of any stocks of molasses comprised in the scheduled 
undertaking their value calculated at the price prevailing immediately 
before the appointed day, as fixed under the Uttar Pradesh Sheera 
Niyantran Adhiniyam, 1964, and the provisions of clauses (b) and (c) of 
sub-section (1) shall mutatis mutandis  apply in relation to such 
compensation.  
(3) The State Government shall pay as compensation for the 
acquisition of any stocks of sugarcane comprised in the scheduled 
undertaking the actual cost of their purchase, as may be agreed upon 
between the State Government and the persons interested and failing 
such agreement, as may be determined by the prescribed authority.  
(4) The State Government shall pay as compensation for the 
acquisition of any sugar in the process of production or any bagasse or 
press-mud comprised in the schedule I undertaking its market value 
as may be agreed upon between the State Government and the persons 
interested, and failing such agreement, as may be determined by the 
prescribed authority.  
(5) In addition to the compensation, if any, payable under sub -
sections ( 1), (2), (3) and (4) for the acquisition of the properties and 
assets referred to in those sub -sections, the State Government shall 
pay as compensation for the acquisition of every scheduled 
undertaking specified in column 2 of 1[any of the schedules to this Act] 
an amount specified against it in column 3 thereof, by depositing it 
with the prescribed authority in accordance with the provisions of sub -
section (6) and (9), and the same shall be paid to the persons entitled 
thereto in accordance with the decis
ions of that authority or of the 
Tribunal, as the case may be, under sub -section (9) or sub-section (12) 
or under section 8, section 9 or section 11. 
(6) The State Government shall provisionally deduct from the 
compensation referred to in sub -sections (1 ), (2), (3), (4) and (5) the 
following amounts, namely :— 
(a) any amount due on account of any debt, mortgage, charge 
or other encumbrance or lien, trust or similar obligation attached to 
the scheduled undertaking which by virtue of the provisions of section 
3 shall, on the appointed day, attach to the compensation in 
substitution for the under taking ;  
(b) any amount due to any cane -growers or any cane -growers’ 
co-operative societies in respect of the price of sugarcane supplied by 
such cane growers or by members of such societies to the scheduled 
undertaking before the appointed day ;  
1. Subs. by sec. 3 of U. P. Act no. 30 of 1989.
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[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
(c) any amount of wages, retaining allowances, bonus, 
provident fund or other payment due to persons employed as workmen 
(within the meaning of the U. P. Industrial Disputes Act, 1947) in 
connection with the scheduled undertaking immedi ately before the 
appointed day ; 
(d) any amount due in respect of either the employer’s 
contribution or the employees’ contribution realized by the employer or 
any other dues recoverable from the employer under the Employees’ 
Provident Fund Act, 1952 or the Employees’ State Insurance Act, 1948 
in respect of persons employed in connection with the scheduled 
undertaking immediately before the appointed day that the employer 
may have failed to pay in accordance with the respective Acts ;  
(e) any amount, n ot being an amount referred to in clause (a), 
claimed by the State Government to be due immediately before the 
appointed day from any person interested in the scheduled 
undertaking on account of any loan, tax or cess, or any penalty or 
interest due in respect of such loan, tax or cess, — 
and deposit the balance, if any, with the prescribed authority, and 
where such deductions are equal to or exceed the compensation, it 
shall inform the prescribed authority accordingly ;  
Provided that the amount provisi onally deducted under clause 
(a), in so far it is not claimed by the State Government as due to itself, 
be deposited with the prescribed authority for disbursement to the 
persons interested according to their respective titles.  
Explanation—The amounts r eferred to in clauses (a), (b), (c) 
and (d) shall be provisionally deducted on the basis of information 
available with the State Government in respect thereof, and it shall be 
open to the State Government to obtain relevant information either 
from the Corp oration or from the Cane Commissioner, the Labour 
Commissioner, the Employees’ Provident Fund Commissioner or the 
Employees’ State Insurance Corporation, as the case may be.  
(7) The State Government shall file with the prescribed 
authority a statement g iving particulars of the deductions referred to 
in sub-section (6). 
(8) The prescribed authority shall give notice of every deposit 
made with it under sub -section (6) and of every statement filed before 
it under sub -section (7) to all persons known or be lieved to be 
interested in the scheduled undertaking or to be entitled to act for 
persons interested.  
(9) If any person interested (including any secured creditor) 
makes any objection against the correctness of the amounts 
provisionally deducted under s ub-section (6), such objection shall be 
decided by the prescribed authority and the prescribed authority may 
in  accordance  with  its  decision direct the State Government to make  
7 
[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
such deposit or further deposit as may be necessary or make such 
other order as it thinks fit. 
(10) The deposit referred to in sub -section (6), in so far as it 
relates to the compensation referred to in sub -section (5), shall be 
made not later than six months from the date on which possession of 
the properties and assets comprised in the scheduled undertaking has 
been delivered under section 5 ; 
Provided that where in c onsequence of any act committed by 
any person interested (including any legal proceeding instituted by 
him), the Corporation is deprived of or is interrupted in the possession 
of such properties and assets the period of such deprivation or 
interruption shall be excluded while computing the said period of 1[six 
months]. 
(11) (a) Interest at the rate of five and three quarters per cent 
per annum shall be due from the State Government on the balance of 
the amount of compensation referred to in sub -section (5
) less the 
amounts mentioned in clauses (a), (b), (c), (d) and (e) of sub-section (6). 
(b) Such interest shall run from the date on which possession 
of the properties and assets comprised in the scheduled undertaking 
has been delivered under section 5 till the date or respective dates of 
deposits under sub -section (6) and sub -section (9), but any period 
referred to in the proviso to sub-section (10) shall be excluded. 
(12) If any doubt or difference arises in respect of the period 
referred to in the pro viso to sub -section (10) or about the amount of 
interest referred to in sub-section (11) the same shall be determined by 
the prescribed authority, which may in accordance with its decision 
direct the State Government to make such deposit or further deposit  
as may be necessary. 
(13) Nothing in this section shall be construed— 
(a) to permit the State Government to claim any priority for its 
unsecured dues over any debt, mortgage, charge or other 
encumbrance, or lies, trust or similar obligation attached to the 
scheduled undertaking which by virtue of the provisions of section 3 
shall, on the appointed day, attach to the compensation in 
substitution for the undertaking ; or 
(b) to require the State Government to pa y any amount in 
excess of the compensation provided by this section for satisfying any 
such debt, mortgage , charge or other encumbrance or lien, trust or 
other obligation. 
Claims to be 
satisfied out 
of 
compensation. 
8. (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  
1. Subs. by sec. 3  of U. P. Act no. 20 of 1985.
8 
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[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
comprised in the scheduled under taking 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 authority a certificate 
containing particulars of any outstanding dues referred to in that sub -
section.  
Ac
t XIX of 
1952. 
Act XXXIV of 
1948. 
(4) The Employees’ Provident Fund Commissioner or the 
Employees’ State Insurance Corporation may sent to the prescribed 
authority a certificate in respect of either the employer’s contribution 
or the employees’ contribution realized by the employe r or any  other 
dues recoverable from the employer under the Employees’ Provident 
Fund Act, 1952, or the Employees’ State Insurance Act, 1948, as the 
case may be, in respect of any person who was employed in connection 
with the scheduled undertaking immedia tely before the appointed day, 
that the employer may have failed to pay in accordance with the 
respective Acts.  
(5) Any person who was employed exclusively in connection 
with the scheduled undertaking immediately before the appointed day, 
whether he doe s or does not become an employee of the Corporation 
under section 16, or ceases to be in such employment, or any trade 
union of which such person was member, may prefer to the prescribed 
authority any claim relating to any salary, wages, retaining allowances, 
leave salary, bonus, pension, provident fund, gratuity or other 
payment due to him, or the proportionate amount thereof, in respect of 
any service rendered by him in connection with the undertaking before 
the said day.  
(6) Without prejudice to the p rovisions of sub -section (5), the 
Corporation may send to the prescribed authority a certificate 
containing particulars of any outstanding dues referred to in that sub -
section in so far as they relate to persons who were employed as 
aforesaid before the ap pointed day and who on and from that day 
become employees of the Corporation under section 16. 
(7) A claim mentioned in sub -section (1), sub -section (2), or 
sub-section (5), may be preferred whether or not a decree or award has 
been obtained on the basis thereof and it shall conform generally to the 
requirements of Orders VI and VII of the Code of Civil Procedure, 1908, 
as if it were a plaint.  
Act V of 1908 (8) A certificate mentioned in sub -section (3) or sub -section (6) 
may be sent whether or not any recover certificate or other process has  
9 
[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
been issued or othe r legal proceedings have been taken before the 
appointed day in respect of dues referred to in that sub -section, and 
shall be conclusive evidence of the matters stated therein. 
(9) The prescribed authority shall give notice of every claim 
preferred to it or certificates received by it under this section to all 
persons known or believed to be interested in the scheduled 
undertaking or to be entitled to act for persons interested.  
(10) The prescribed authority shall hold such inquiry as it 
thinks fit, an d subject to  the provisions of sub -section (8) and of 
section 9, adjudicate on the claims mentioned in this section and also 
on any dispute as to title to the compensation.  
(11) The amount of compensation shall be applied to the 
satisfaction of the claims mentioned in sub -section (6) of section 7 and 
the foregoing sub-sections, in the following order :— 
(a) claims mentioned in sub-section (1) ; 
(b) claims mentioned in clause (a) of sub -section (6) of 
section 7; 
(c) claims mentioned in clauses (b), (c) and (d) of sub-section (6) 
of section 7 ;  
(d) claims mentioned in clause (e) of sub-section (6) of section 7; 
(e) other claims mentioned in the foregoing sub-sections. 
(12) The claims mentioned in each clause of sub -section (11) 
shall rank equally between themselves, and if the balance referred to 
in that sub -section is insufficient to meet them they shall be satisfied 
proportionately.  
(13) The claims mentioned in the foregoing sub -section shall be 
preferred or certificates in respect thereof sen t to the prescribed 
authority within four months from the appointed day :  
Provided that any period referred to in the proviso to sub -
section (10) of section 7 shall be excluded while computing the said 
period : 
Provided further that nothing in the for egoing sub -sections 
shall be construed to require any claim to be preferred or certificate to 
be issued in respect of any amount deducted by the State Government 
under clause (b), clause (c), or clause (d) of sub-section (6) of section 7. 
(14) The claims referred to in sub -section (11) shall be satisfied 
from the amount available out of compensation by the State 
Government or the prescribed authority, as the case may be, and the 
liability of any person interested in the scheduled undertaking shall, to 
the extent of such payment, stand discharged.  
(15) If the State Government pays any amount to any person 
which, according to the decision of the prescribed authority, was not  
10 
[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
payable to him or exceeded the amount payable to him , the prescribed 
authority may make an order for the refund of such amount or, as the 
case may be, the excess amount, and such order shall have the force of 
a decree of a Civil Court. 
(16) The prescribed authority may disburse the sums deposited 
with it  in accordance with its decisions or the decisions of the 
Tribunal, as the case may be, and may make such interim orders 
respecting the withdrawal or investment of the whole or part of any 
such sum as it thinks just and expedient.  
Explanation—In this se ction and in section 16, a person 
employed exclusively in connection with the undertaking immediately 
before the appointed day includes a seasonal worker who was in 
receipt of retaining allowance immediately before such day but does 
not include any other casual worker.  
Avoidance of 
certain 
secured debts 
9. (1) Where any objection relating to a claim based on a debt,
mortgage, charge ro other encumbrance or lien, trust or similar 
obligation is preferred to the prescribed authority under sub-section (9) 
of section 7, 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 of lien, trust or other obligation on which the claim is 
based, was entered into— 
(a) to defeat or delay any dues of the State Government or any 
claim referred to in section 8 or the claim of any other creditor ; or  
(b) to give to the claimant, or to a person through whom he 
claims, a preference over the dues of the State Government or of 
persons referred to in the said sub -
sections of section 8, such 
transaction having bee n entered into within a period of one year 
immediately before the appointed day ; or 
(ii) that the transaction was not entered into in good faith and 
that its terms were not reasonable.  
(2) The prescribed authority after taking into consideration all 
the circumstances of any such transaction and of the scheduled 
undertaking, may, unless the claimant is proved to the satisfaction of 
the prescribed authority to be a transferee in good faith and for 
consideration, make an order cancelling or varying the transaction on 
such terms as it may think fit to impose, and the transaction shall, 
thereupon, cease to have effect or, as the case may be, shall have effect 
subject to such variation.  
Prescribed 
Authority 
10. The State Government shall, by notification i n the Gazette,
appoint an officer not below the rank of a Commissioner or a District 
Judge to perform the functions of the prescribed authority under this  
11 
[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
Act, and different prescribed authorities may be appointed in respect of 
different scheduled undertakings. 
Appeal 11. 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. 
Tribunal 12. (1) The State Government shall, by notification in th e
Gazette, constitute a Tribun al 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. 
Powers an 
Procedure. 
Act V of 1908 
13. (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, in respect of the 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) issuing commission for the  examination of any witness or 
document or for the inspection or evaluation of any property or asset 
comprised in a scheduled undertaking ;  
(e) executing any order made by it ; 
(f) such other matters, if any, as may be prescribed. 
(2) The prescribed authority or the Tribunal shall have power to 
regulate its own procedure, and to review any of its decisions in the 
event of there being a mistake on the face of the record or correct any 
arithmetical or clerical error therein.  
(3) If for any reason a vacancy (other than a temporary absence) 
occurs in the office of the prescribed authority or of the member of the 
Tribunal, the State Government shall appoint another person in 
accordance with the provisions of this Act to fill the vacancy, and the 
proceeding may be continued before the prescribed authority or the 
Tribunal, as the case may be, from the stage at which the vacancy is 
filled.  
Act V of 1898 
Act
 XLV of 
1860 
(4) The prescribed authority or the Tribunal shall be deemed to 
be a civil court withi n the meaning of section 480 of the Code of 
Criminal Procedure, 1898, and any proceeding before the prescribed 
authority or the Tribunal shall be deemed to be a judicial proceeding 
within the meaning of sections 193 and 228 of the Indian Penal Code. 
Bar of 
Jurisdiction 
14. Every decision of the prescribed authority, subject to
appeal,  if  any,  to  the  Tribunal,  and  every  decision  of the Tribunal 
12 
[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
under this Act shall be final and shall not be called into question in 
any court. 
Liability in 
respect of 
unsatisfied 
claims and 
other dues 
15. Nothing in this Act shall be construed —
(i) to affect any dues on any advance 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 ; or  
(iii) to bar any remedy or any investigation or legal proceeding 
(whether pending immediately befor e the appointed day or not) under 
any l aw for the time being in force (including any law relating to 
recovery of dues realizable as arrears of revenue), in respect thereof 
against any person interested in the scheduled undertaking.  
Transfer of 
employees 
Act I of 1956 
16. (1) Save as otherwi se 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, of such director or of a proprietor or partner or lessee of the 
undertaking), who was employed exclusively in connection with the 
scheduled 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 the 
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  the Corporation, and shall 
continue to do so until his employment in the Corporation  is 
terminated or until his remuneration or ot her terms and conditions of 
service are revised or altered by 
the Corporation under or in pursuance 
of any law or in accordance with any provision which for the time being 
governs his service ;  
Provided that no appointment made or promotion, increment i n 
salary, pension, allowance or any other benefit  1[granted to any person 
after the thirty -first day of March, 1970  in relation to an undertaking 
specified in schedule 1, 31st day of March, 1983 in relation to an 
undertaking specified in schedule 2 and such date as may be notified 
by the State Government in this behalf in relation to an undertaking 
specified in schedule 3 (such dates hereinafter re ferred to as the 
specified date] and 2[before the appointed day which in the opinion of 
the Corporation] would not ordinarily have been admissible under the 
terms and conditions of service in force prior to the specified date shall 
have effect or be payable or claimable from the corporation or from any 
prvident, pension or other fund or from any authority administring the 
fund unless the State Government has, by general or special order, 
confirmed the appointment, promotion or increment or has directed 
the continued grant of the pension, allowance or other benefit as the 
case may be.  
1. Subs. by sec. 4(a) of U. P. Act no. 30 of 1989.
2. Subs. by sec. 4(b) of U. P. Act no. 30 of 1989.
13 
—————————————————————————————————————————— 

[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
U
. P. Act 
XXVIII of 
1947 
(2) Notwithstanding anything in sub -section (1), but subject to 
any express agreement to the contrary, any person referred to therein, 
other than a workman as defined in the U. P. Industrial Disputes Act, 
1947, who becomes an employee of the Corporation shall be liable to 
be transferred from the schedule undertaking in which he was 
employed immediately before the appointed day to any other 
undertaking or establishment belonging to the Corporation at the same 
remuneration and on the same terms and conditions as govern him 
immediately before such transfer.  
(3) If any question arises as to whether any person was 
exclusively employed, in connection with the scheduled undertaking 
immediately before the appointed day, it shall be decided by the 
prescribed authority.  
(4) For the persons who, immediately before the appointed day, 
were trustees or any pension, provident, gratuity or other like fund 
constituted for the employees referred to in sub- section (1), other than 
trustees nominated by or under any law, there shall be substituted as 
trustees such persons as the State Government may, be general or 
special order, specify.  
U
. P. Act 
XXVIII of 
1947 
(5) Notwithstanding anything contained in the U. P. Industrial 
Disputes Act, 1947, or in any other law for the time being in force, the 
transfer of services of any employee to the Corporation under sub -
section (1) shall not entitle any such employee to any compensation 
under that Act or such other law, and no such claim shall be 
entertained by any court, tribunal or authority.  
U
. P. Act 
XXVIII of 
1947 
(6) Where the State Government is satisfied that for purposes of 
securing uniformity in the scales of re muneration and other terms and 
conditions of  service applicable to persons employed in connection 
with the scheduled undertakings vested in the Corporation under this 
Act it is necessary so to do, or that in the interest of the Corporation or 
for the devel opment of the sugar industry in the State a reduction in 
remuneration payable or a revision of the other terms and conditions 
of service applicable, to employees or any class of them is called for, 
the State Government, notwithstanding, anything in this se ction or in 
the U. P. Industrial Disputes Act, 1947, or any other law for the time 
being in force may at any time within a period of three years from the 
appointed day alter (whether by way of reduction 
or otherwise) the 
remuneration and the other terms and conditions of service to such 
extent and in such manner as it thinks fit, and if the alteration is not 
acceptable to any employee, the Corporation may terminate his  
14 
[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
employment by giving him compensation equivalent to three months’ 
remuneration unless the contract of service with such employee 
provides for a shorter notice of termination. 
Explanations I —The compensation payable too an employee 
under this sub-section shall be in addition to, and shall not affect, any 
pension, gratuity, provident fund or any other benefits to which the 
employee may be entitled under the contract of service.  
Explanations II —The expression “contract of service” means 
the contract as s ubsisting between the employee and the Corporation 
immediately before termination.  
A
ct II of 
1946 
U. P. Act 
XXVIII of 
1947 
Act XXI of 
1965 
Act XIX of 
1952 
Act XXXIV of 
1948 
(7) For the purposes of adjudicating upon the fairness or 
reasonableness of t he provisions of any standing orders under the 
Industrial Employment (standing Orders) Act, 1946, or the fairness 
and reasonableness of wages and other allowances, leave with wages, 
holidays, bonus, profit- sharing, provident fund, gratuity, customary 
concessions and privileges, rationalization, retrenchment or any other 
matter mentioned in the Second or the Third Schedule to the U. P. 
Industrial Disputes Act, 1947, and for calculation of bonus under the 
Payment of Bonus Act, 1965, or any contribution under the 
Employees’ Provident Fund Act, 1952, or under the Employees’ State 
Insurance Act, 1948, the accounts, profit, lo sses and other 
circumstances of or  pertaining to the undertaking belonging to the 
Corporation in which a workman or other employee is for th e time 
being employed shall alone be considered and not the accounts, 
profits, losses and other circumstances of any other undertaking 
vested by virtue of this Act in the Corporation or otherwise acquired by 
it.  
(8) Where at any time after the appointed  day the Corporation 
promotes any subsidiary company and transfers one or more 
scheduled undertakings which by virtue of this Act have vested in the 
Corporation to such company, the services of such of the employees of 
the Corporation as the Corporation de clares to have been employed in 
connection with that or those undertakings (excepting such of them as 
elect otherwise within such time as may be prescribed) shall stand 
transferred to that subsidiary company, and every such employee shall 
become the employ ee of such company at the same remuneration, 
upon the same terms and conditions and with the same rights and 
privileges as to p
ension, gratuity and other matters as would have 
been admissible to him if the undertaking had not been transferred to 
the subsidiary company, and shall continue to do so 
until his 
remuneration or other terms and conditions of service are revised or 
altered by the company under on in pursuance of any law or in 
accordance with any provision which for the time being governs his 
service, and the provisions of sub -section (5) shall muta tis mutandis  
apply to in relation to such transfer of services. 
15 
[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
Access to 
books of 
account and 
other 
documents 
17. Where, at any time during a  period of one year from the
appointed day, any 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 filing 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 in spect any 
such book, register or document or to take extracts or copies 
therefrom. 
Penalties 18. (1) Any person who—
(a) having in his possession, custody or control any property, 
asset, book of account, register or other document forming part of 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 
(b) wrongfully obtains possession of any such property, asset, 
book of account, register or other document ; or  
(c) conceals, destroys, mutilates or defaces any book of 
account, register or other document with intent to evade the provisions 
of section 5 ; or  
(d) willfully fails to furnish any particulars as required by 
section 6 ; or  
(e) furnishes, in compliance with the requirements of section 6, 
particulars which are false and which he either knows or believes to be 
false or does not believe to be true ;  
shall be punishable with imprisonment for a term which may extend to 
three years or with fine, or with both.  
(2) Any court trying any offence under clause (a) or clause (b) of 
sub-section (1) may, at the time of convicting the accused person, 
order him to deliver up within a time to be filed by it any  property, 
asset, book of account, reg ister or other document wrongfully obtained 
or willfully withheld. 
(3) No court shall take cognizance of an offence punishable 
under this section except with the previous sanction of the State 
Government or of an officer authorized by the State Governmen
t in 
that behalf. 
Offences by 
Companies 
19. (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 offences shall be deemed to be guilty of the 
offence and shall be liable to be proceeded against and punished 
accordingly ; 
16 
[The Uttar Pradesh Sugar Undertaking (Acquisition) Act, 1971]
Provided that nothing conta ined 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.  
(2) Notwithstan

Excerpt shown. Open the full act in Lexace.

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