The UTTAR PRADESH AGRICULTURAL CREDIT ACT, 1973

Uttarakhand · state statute

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THE UTTAR PRADESH AGRICULTURAL CREDIT ACT, 19731
[U P. Act No 19 of 1973]

Amended by
U. P. Act No. 19, of 1975
U P, Act No. 25, of 1979

[Passed in, Hindi by the Uttar Pradesh Legislative Council on March 22, 1973
and by the Uttar Pradesh Legislative Assembly on April 18, 1973.
Received the assent of the President on October 17, 1973 under Article 201 of
‘the Constitution of India ’ and was published in Uttar Pradesh Gazette Extrao rdinary
dated October 22, 1973.]
AN
ACT

to make provisions to facilitate adequate flow of credit for agricultural
production and development through banks and other institutional credit agencies and
for matters connected therewith or incidental thereto.

It is hereby enacted in the Twenty -fourth Year of the Republic of India as
follows:-

CHAPTER 1
Preliminary
Short title,
extent and
commence
ment
1. (1) This Act may be called the Uttar Pradesh Agricultural Credit Act, 1973.
(2) It extends to the whole of Uttar Pradesh.
(3) It shall come into force on such date as the State Government may by notifications2 in
the Gazette, appoint in this behalf.

Definitions 2. In this act unless the context otherwise requires----

[“(a) agriculture’ and ‘agricultural purpose’ include s making land fit for cultivation,
cultivation of land improvement of land (including development of sources of
irrigation), raising and harvesting of crops, horticulture, forestry cattle breeding,
animal husbandry, dairy farming, piggery, poultry farming, seed farming,
pisciculture, apiculture, sericulture and such other activities as are generally carried
on by persons engaged in any of the aforementioned activities and also included----

(i) marketing of agricultural products, their storage and transport;
(ii) the acquisition of implements and machinery in conne ction with any such
activity;
(iii) the acquisition of gobar-gas plants; and
(iv) the establishment and maintenance of agro-service centers ;

1. For S.O.R. see Uttar Pradesh Gazette (extraordinary) dated march 15, 1973.
2. This Act came into force wef. January 1, 1974 vide notification no IF 3001 (i)X-1-1973
dated December 31, 1973.

[The Uttar Pradesh Agricultural Credit Act, 1973] [Section 2]

Explanation:- For the purposes of this clause, the expression "agro-service
centre" means a place or a shop where the entrepreneurs, trained by the U. P.
State Agro-Industrial Corporation Limited, carry on the sale of seeds, fertilizers,
insecticides, pesticides or oth er goods of agricultural use or agricultural
operations in respect of land held by others by tractors or other mechanized
process on hire or repair of the agricultural implements;]1
(b) "agriculturist" means a person who is engaged in agriculture;
(c) "bank" means :-
(1) a banking company, as defined in the Banking Regulation Act, 1949 ;
(2) the State Bank of India constituted under the State Bank of India Act, 1955;
(3) a subsidiary Bank, as defined in the State Bank of India (S ubsidiary Banks)
Act, 1959; .
(4) a corresponding new Bank constituted under the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 ;
[(5) a financing bank or Central Bank (as defined in the Uttar Pradesh Co -
operative Societies Act. 1965) not being a land development bank;]2
(6) the Agricultural Refinance Corporation constituted under the Agricultural
Refinance Corporation Act 1963;
(7) the U. P. State Agro -Industrial Corporation Limited a company incorporated
under the Companies Act, 1956.
(8) the Agricultural Finance Corporatio n Limited, a co mpany incor porated
under the Companies Act 1956; and
[(8-a) "a regional rural ba nk established under sub -section (1) of section 3 of the
Regional Rural Banks Act, 1976;]3 and
(9) any othe r financial institution notified by the State Government in the
Gazette as a bank for the purpose of this Act;
(d) "Co-operative Society" means a Co -operative society registered or deemed to be
registered under the Uttar Pradesh Cooperative Societies Act, 1965, the object of
which is to provide financial assistance to its members , and includes a co -
operative land development bank;
(e) "financial assistance" means assistance [granted, whether before or after t he
commencement of this Act] 4 by way of loan, advance, guarantee or otherwise (i)
either to an agriculturist for agricultural purposes or (ii) to a Co-operative Society
for enabling it to grant loans and advances to its members for agricultural
purposes;

1. Subs. by Section 2(i) of U, P. Act No. 25, 1979,
2. Subs. by Sec. 2(ii) of U. P. Act No. 19, 1975.
3. Subs by section 2 (ii) of U. P. Act No. 25,1979
4. Subs. by Sec. 2(iii) of U. P. Act No. 19. 1975 and be deemed always to have been substituted.

[The Uttar Pradesh Agricultural Credit Act, 1973] [Section 3-6]

(f) "law relating to land tenures" means the Uttar Pradesh Zamindari Abolition and Land
Reforms Act, 1950, the Uttar Pradesh Urban Areas and Land Reforms Act, 1956, the
Jaunsar Bawar Zarnindari Abolition a nd Land Reforms Act, 1956, the Kumaun and
Uttrakhand Zamindari Abolition and Land Re -forms Act, 1960, the Uttar Pradesh
Consolidation of Holdings Act, 1 953 or the U.P. Impositio n of Ceiling on Land
Holdings Act, 1960, as amended from time to time;
(g) "prescribed" means prescribed by rules made under this Act.

CHAPTER 2
Rights of agriculturists to alienate land or interest in land in favour of banks

Vesting of
rights of
alienation on
agriculturists
not having
such righs
3. The State Go vernment may by notification in the Gazette, vest, subject to such
restrictions as may be specified in the notification, all bhumidhars, [* **]1 asamis
and Government lessees, with rights of aliena tion in land held under their tenure or
any interest in such land including the right to create a cha rge or mortgage or such
land or interest in favour of ba nks generally or any specified class of banks for the
purpose of obtaining financial as sistance from such banks, and upon issue of such
notification, such bhumi dhars, [ ***]1 asamis and Government lessees shall,
notwithstanding anything contained in any law for the time being in force or in any
contract, grant or other instr ument to the contrary, or any custom or tra dition, have a
right of alienation in accordance with he terms of the notification.]2

Charge on
crop and
other mov -
able property
in
favour of a
bank
4. (1) It shall be lawful for an agriculturist to create a charge on the moveable property
owned by him or on the crops raised by him standing or otherwise or other produce
from land cultivated by him, to the extent of his interests therein, in favour of a bank
to secure financial assistance from that bank, no twithstanding that he may not be
owner of the land [on and from which such crop or produce is raised.]3
(2) Notwithstanding anything to the cont rary in [* **] 4 the Uttar Pradesh Co -operative
Societies Act,1965 or any other law for the time being in force, no charge in respect
of any de bt or other cut -standing demand due to a co -operative society f rom an
agriculturist shall have priority over a charge on the crop raised by him, standing or
otherwise, or any other movable prop erty in respect of any finan cial assistance given
to him by a bank p rovided the financial assistance made by the bank is prior in point
of time to the debt or demand of the co-operative society.

5. [* * * ]5
Creation of
charge on
land
in favour of a
bank by
decalration
6. [(1) An agriculturist desirous of securing financial assistance from any bank by creating a
charge on land or any other immovable property which he owns or in which he has
an interest may make a declaration on a duly stamped paper in the form set out in the
Schedule or as near thereto as circumstances permit, declaring that thereby he creates
in favour of the bank a charge on such land or his Interest therein or other immovable
property, as the case may be.]6

1. Omitted by section 3 of U. P. Act NO. 25. 1979.
2. Subs. by section 3 ibid.
3 Subs. by section 4(a) ibid.
4 Omit by section 4(b) ibid.
5. Omit by section 5 of U. P. Act No. 19 1975.
6. Subs. by section 6 ibid.

[The Uttar Pradesh Agricultural Credit Act, 1973] [Section 6A-8]

(2) A declaration made under sub-section (1) may be varied from time to time by
the agriculturist with the consent of the bank in chose favour the declaration
has been made.

[Transfer of
charge or mort -
gage to land
allotted during
consolidation
operations
6-A Where any land held by an agriculturist is subject to a charge or mortgage
created in favour of a bank by an agriculturist and the rights title and interest o f
the agriculturist in the said land have ceased as a result of the enforcement of the
final consolidation scheme under Chapter IV of the U. P. Consoli dation of
Holdings Act, 1953, such charge or mortgage shall be transferr ed, and attached
to the corresponding land allotted to the agriculturist and to the compensation, if
any, payable under the said scheme.]1

CHAPTER 3
Charges and mortgages in favour of hanks and their priorities

Removal of
disability in
creation of
charges and
mortgages
U.P. Act No. XI
of 1966
7. [Notwithstanding anything contained in the Uttar Pradesh Co-operative
Societies Act, 1965 and Uttar Pradesh Co -operative Lana Development Bank
Act, 1964]2 or any other law for the time being in force and notwithstanding that
any land o r interest therein stands already charged or mortgaged to a co -
operative society, it shall be law ful fo r an agriculturist to create a charge or
mortgage on such land or interest therein in favour of a bank as se curity for any
financial assistance given to the agriculturists by that bank.

Priority of
charges and
mortgages in
favour of
Government a
bank and a co -
operative
society
8. (1) Notwithstanding anything to the contrary in section 39 of the Uttar Pradesh Co-
operative Societies Act, 1965 or section 18 of the Uttar Pradesh Co -operative
Land D evelopment Banks Act, 1964 or any other law for the time being in
force-
(a) any charge or mortgage created on any land or interest therein in favour of
Government shall have priority over any other charge or mortgage that may
have been created on such land or interest by an agriculturist in favour of a
bank or cooperative society prior to the date the charge or mortgage was
created in favour of the Government;
(b) any charge or mortgage created on any land or interest therein, in favour of
a bank in respect of financial assistance given to an agriculturist by that
bank shall have priority over any other charge or mortgage that may have
been created on such land or interest in favour of any person other bank,
prior to the date on which the charge or mortgage was created in favour of
that bank;
(c) where different charges or mortgages over the same land or interest therein
have been created by an agriculturist in favour of a co -operative society or a
bank or more than one bank, any such charge or mortgage created as
security for financial assistance given by the co -operative society or the
bank or banks by way of term loan for development p urposes shall have
priority over the other charges or mortgages created in favour of the co -
operative society or any of the banks :

1. Inserted by section 7 of U. P. Act No. 19 1975.
2. Subs. by section 8 ibid.

[The Uttar Pradesh Agricultural Credit Act, 1973] [Section 9]

Provided the prior notice of any such financial assistance by way of
term loan for development purposes had been given to such co -operative
society or bank had concurred in such financial assistance, and w here more
than one such charge or mortgage is created as security for financial
assistance given by way of term loan, the charges or mortgages byway of
security for term loan for development purposes shall rank for priority in
accordance with the dates of their creation.
Explanation--- For the purpose of this section, “term loan for
development purpose” means financial assistance which would generally
lead to improvement of agriculture or building up of assets in agriculture but
does not include financial assistance for meeting working capital expenses,
seasonal agricultural operations and marketing of crops.
(2) Nothing in this section shall apply to borrowings only from one or more co -
operative societies, including land development banks or the State L and
Development Bank a s defined in the Uttar Pradesh C o-operative Land
Development Banks Act, 1964.

Registration of
charge and
mortgage in
favour of banks

Act No. XVI of
1908
9. (1) Notwithstanding anything contained in the Registration Act, 1908, a charge
in respect of which a declaration has been made under sub -section (1) of
section 6 or in respect of which a variation has been made under sub-section
(2) of that section, or a mortgage of any land or interest therein or other
immovable property ex ecuted by an agriculturist in favour of a bank in,
respect of financial assistance given by that bank shall be deemed to have
been duly registered in accordance with the provisions of that Act with effect
from the date of execution of such charge, variatio n or mortgage, as the case
may be, provided the bank has sent to the Sub -Registrar wit hin the local
limits of whose jurisdiction the whole or any part of the property charged or
mortgaged is situate within a period of one month from the date of such
execution by registered post acknowledgement due, a copy of the document
creating of such charge, variation or mortgage duly certified to be a true
copy by an employee of the bank authorized to sign on its, behalf and the
Sub-Registrar has filed it in Book N o. 1 prescribed under section 51 of the
Registration Act, 1908.
[(2) The Sub -Registrar shall, as soon as may be, on receipt of the copy of the
document referred to in sub -section (1) , and after ascertaining that said
document is duly stamped, file the cop y in Book No.1 prescribed under
section 51 of the Registration Act, 1908.
(3) Where the Sub-Registrar is of the opinion that the said document is not duly
stamped or suffers from any defect arising out of an accidental slip or
omission, he shall send ba ck the copy of the document to the bank requiring
it to get the deficiency in the stamp duty made good on the original or to get
the defect removed within thirty days or within such extended time as he
sub-Registrar may allow in that behalf.
(3-A) The ba nk shall get the deficiency made good or the defect removed,
notwithstanding anything contained in the Indian Stamp Act, 1899.]1

1. Substituted by section 9(a) of U.P. Act No. 19 of 1975.
50

[The Uttar Pradesh Agricultural Credit Act, 1973] Section 9A-10A]

(4) After the deficiency in stamp has been made good [or as the case may be the defect
has been removed] 1 the Bank shall send the copy of the document again to the sub -
Registrar in the manner laid down in sub -section (1) and thereupon the sub-Registrar
shall file the copy in Book No. 1 in accordance with the provisions of sub-section (2).

(5) Notwithstanding anything contained in the Registration Act, 1908, it shall not be
necessary for the agriculturist or any office of the ban k to appear in person or by
agent in any registration office in any proceeding connected with the registration of
the document or to sign as provided in section 58, of the said Act.

[Nothing of
mortgage in
the
record-of-
rights
9-
A
Where a copy of the document creating charge variation or mortgage has been sent
for registration under section 9, the bank may give intimation to the Tahsildar or such
other official as may be designated in this behalf by the State Government, of the
particulars of such cha rge, variation or mortgage. The Tahsildar or the other official
shall make a not of the particulars of the charge, variation or mortgage in the record
of rights relating to the land in respect of with such charge or mortgage has been
created or variation has been made.

Registration
of discharge
certificates
9-
B
Where any declaration or variation in respect of a charge, or mortgage of any land or
interes therein or other immovable property has been registered in accordance with
section 9 and the amoun t of financial assistance secured hereby has been paid to the
bank or the debt has been otherwise discharge, the bank shall issue a certificate to
that effect and the provisions of the said section shall issue a certificate to that effect
and the provisions of the said section shall mutatis mutandis apply to the registration
of such certificate. ]2

Restrictions
on creation
of
tenancy by
an
agriculturist
borrower
10
.
(1) Notwithstanding anything contained in any law relating to land tenures or any oth er
law for the time being in force, an agriculturist who has availed himself of financial
assistance from a bank by creating a charge or mortgage on land or interest therein
shall not so long as the financial assistance continues to be outstanding , lease or
create any tenancy rights on such land or interest therein without prior permission in
writing of the bank nor shall any such rights accrue to any person during that period
by reason of unauthorized occupation or adverse possess ion over such land or
interest.
(2) Any lease granted or tenancy rights created in contravention of this section shall be
void.

CHAPTER 4
Recovery of dues by banks

[Removal of
bar to attach-
ment and sale
by process of
court
10-A Nothing in any law shall prevent in any manner a bank from causing any land or any
interest therein charged or mortgaged to it by an agriculturist to secure any fin ancial
assistance, to be attached and sold through a civil court and applying the proceeds of
such sale towards all moneys du e to it fr om that agriculturist including the costs and
expenses as may be awarded by the court.

1. Inserted by section 9 (b) of U.P. Act No. 19 of 1975.
2. Inserted by section 10 ibid.

[The Uttar Pradesh Agricultural Credit Act, 1973] [Section 10B-11]

Distraint and
sale of
produce
and movables
10-B (1) Where any sum in respect of any financi al assistance granted to an agriculturist
remains unpaid on the date on which it falls due, the bank granting the financial
assistance may apply to the Tahsildar having jurisdiction for the recovery of the sum
due, together with expenses of recovery, by dis traint and sale of the movable
property or the crop or other produce charged in favour of the bank.
(2) The provisions of the Limitation Act, 1963, shal l apply in relation to an application
under sub-section (1), as if such application were a suit in a civil court for sale of the
movable property for enforcing recovery of the sum referred to in that sub-section.
(3) On receipt of an ap plication under sub-section (1) the Tahsildar or any other official
authorized by him may, notwithstanding anything contained in any other law for the
time being force, take action in the manner prescribed for purposes o f distraining
and selling the property referred to in that sub-section.
(4) Any sum, so recovered shall be transferred to the bank after deducting the expenses
of recovery and satisfying the Government dues or other prior charge, if any.]1

Recovery of
dues of a
bank
through a
prescribed
authority
11. [(1) Notwithstanding anything contained in any law for the time being in force, an
officer specified by the State Government by notification in the Gazette
(hereinafter referred to as the prescribed authorit y) may, on the application of a
bank by order, d irect that any amount due to the bank on account of financial
assistance given to an agriculturist be paid by the sale of the land and or any
interest therein or other immovable property which is charged or mortgaged for the
payment of such amount :
Provided that no order of sale shall be made under this sub -section unless the
agriculturist has been served with, a notice by the prescribed authority calling upon
him to pay the amount due.
(1-A) The provisions of the Limit ation Act, 1963 shall apply in relation to an
application under sub-section (1), as if such applications were a suit in civil court
for sale of the land or interest therein or other immovable property for enforcing
recovery of the sum referred to in that sub-section.]2
(2) An order passed by the prescribed authority shall, subject to the resu lt of appeal
under section 12, be final and be binding on the parties.
(3) Every order passed by the prescribed authority in terms of sub -section (1) or by the
appellate authority under section 12 sha ll be deemed to be a decree of a civil court
and shall be executed in the same manner as a decree of such court by the civil
court having jurisdiction.
(4) [* * * * ]3

1. Inserted by section 11 of U. P. Act No. 19, 1975.
2. Substituted by section 12 (a) of U. P. Act No. 19, 1975
3. Omitted by section 12 (b) ibid.

[The Uttar Pradesh Agricultural Credit Act, 1973] [Section 11A-12B]

[Recovery in
the case of
personal
security
11-A (1) Where any amount of financial assistance is .granted by a bank to an agriculturist and
the agriculturist fails to pay the amount together with interest on the due date, then
without prejudice to the provisions of sections 10 -B and 11, the local principal officer
of the bank by whatever name called may forward to the Collector a certificate in the
manner prescribed specifying the amount due from the agriculturist.
(2) The certificate referred to in sub -section (1) may be forwarded to the Collector within
three years from the date when the amount specified in the Certificate fell due.
(3) On receipt of the certificate, the Collector shall proceed to recover from the
agriculturist, the amount specified therein together with expenses of recovery, as
arrears of land revenue, and the amount due to the bank shall be paid after deducting
the expenses of recovery and satisfying any Government dues or other prior charges if
any.
Explanation-- For the purposes of this section, the expression Collector means
the Collector of the district in which. the agric ulturist ordinarily resides or carries on
the activities referred to in clause (a) of section 2 or where any movable or immovable
property of the agriculturist is situate, and includes any officer, authorized by him in
that behalf.]1

Appeal 12. (1) Any party aggrieved by an order of the prescribed authority under section 11 may,
within a period of thirty days from the date of the order prefer an appeal to such
appellate authority as may be speci fied by the State Government by notification in the
Gazette.
(2) The appellate authority may, after giving an opportunity of hearing to the parties, pass
such order as it think fit.

[Right of a
bank to acquire
and dispose of
immovable
property
12-A (1) Notwithstanding anything contained in any law for the time being in force, but subject
to the provisions of sub -section (2), a bank shall have power to itself acquire any land
or interest therein or any other immovable property which has been charged or
mortgaged to it by an agriculturist in respect of a ny financial assistance granted to
him.
(2) Where a bank acquires any land or interest therein or any other immovable property
under sub -section (1), it shall dispose of such land, interest or property by sale in
favour of an agriculturist within a time to be prescribed, notwithstanding anything
contained in any law for the time being in force.
(3) If the bank has to lease out any land acquired by it under sub section (1), pending sale
thereof as indicated in sub-section (2), the period of lease shall n ot exceed one year at
a time, and the lessee shall not acquire any interest in that property notwithstanding
any provisions to the contrary in' any other law for the time being in force.

Recovery of
dues from legal
representatives
12-B (1) Where an agriculturist dies before the dues in respect of any financial assi stance
granted to him have been fully satisfied, the bank or the Tahsildar referred to in
section 10 -B or the prescribed authority referred to in section 11 or the Col lector
referred to in section 11 -A may proceed against the legal representatives of the
agriculturist for the recovery of the dues.

1. Inserted by section 13 of U. P. Act No. 19, 1975

[The Uttar Pradesh Agricultural Credit Act, 1973] [Section 12C-14]

(2) Where, the proceedings are taken for the recovery against such le gal representatives,
they shall be liable only to the extent of the property of the deceased which has
come to their hands and has not been duly disposed of and for the purpose of
ascertaining such liability, the Tahsildar or the prescribed authority or the Collector,
as the case may be, ma y suo motu or on application of the bank compel such legal
representatives to produce such account as he or it thinks fit.
Recovery
of
dues from
sureties
12-C The provisions of this Act relating to the recovery of dues from an agriculturist and
his legal representatives shall mutatis mutandis apply to the recovery of such dues
from a surety who enters into a contract of guarantee to perform any promi se or
discharge the liability of an agriculturist in case of his default and to the legal
representatives of such surety.]1

CHAPTER 5
Financing of Co-operative Societies by banks
Definition
of
Registrar
13. In this Chapter, Registrar means the Regi strar of Co -operative Societies, Uttar
Pradesh, and includes, except where the context otherwise requires, any other officer
exercising the powers of Registrar of Co-operative Societies under the Uttar Pradesh
Co-operative Societies Act, 1965.

[Bank
eligible to
become
member of a
Co-operative
Society

13-A Notwithstanding anything contained in the Uttar Pradesh Co -operative Societies
Act, 1965, or any other law for the time being in force, it shall be lawful for a bank
to become a member of a Co-operative Society.
Power of co -
operative
societies to
borrow from
bank

13-B Nothing contained in section 60 of the Uttar Pradesh Co operative Societies Act,
1965, shall bar any co -operative society from borrowing from a bank for the
purposes of this Act.
Inspection of
books of a
co-operative
society by a
bank
14. (1) A bank shall have the right to inspect the books of any co -operative society which
has either applied to the bank for financial assistance or is indebted to the bank on
account of financial assistance granted earlier.
(2) The inspection may be carried out by an officer or any other member of the paid staff
of the bank with the previous sanction in writing of the Registrar.
(3) Such officer or other member of the staff of the bank, shall at all reasonable times,
have access to the books of accounts, documents, securities, cash and other
properties belonging to or in the custody of the co-operative society and shall also
be supplied by such society such information, statements and returns as may be
required by him to assess the financial condition of the society and the safety of
financial assistance made or proposed to be made to the society.
1. Inserted by section 14 of U. P. Act No. 19, 1975.
2. Inserted by section 15 ibid.

[The Uttar Pradesh Agricultural Credit Act, 1973] [Section 15-17]

Disputes
between a
bank and a
co-
operative
society
15. (1) Notwithstanding anythi ng contained in the Uttar Prades h Co-operative Societies
Act, 1965 or any other law for the time being in force, any dispute touching the
constitution, management or the business of a co -operative society, between a
bank giving financial assista nce to in Co -operative Society and the Co-operative
Society receiving such assistance, other than disputes re garding the disciplinary
action taken by the society or its committee against a paid employee of the
society, shall be referred by either of the parties to the dispute to the Registrar for
decision.
[Explanation-- A claim by a bank for the recovery of its dues from a co -
operative society in respect of the financial assistance given to it shall be deemed
to be a dispute which shall be referred to the Registrar under this sub-section.]1
(2) Where any question arises whether, for purposes of the foregoing sub -section, a
matter referred to for decision is a dispute or not, the question shall be decided by
the Registrar whose decision shall be final.

Settlement
of disputes

16. (1) If the Registrar is satisfied that any matter referred to him or brought to his notice
is a dispute within the meaning of section 15, the Regist rar shall decide the
dispute him self or refer it for disposal to any other officer nominated by him.
(2) Where any dispute is referred under the foregoing sub -section for decision to the
Registrar's nominee the Registrar may at any time, for reasons to be recorded in
writing, withdraw such dispute from his nominee and may decide the dispute
himself or refer it again for decision to any other officer nominated by him.
(3) The Registrar may, if he is of the opinion that the question at issue between a co -
operative society and a bank is one involving com plicated question of law and
fact, by order stay action under sub -section (1), until the ques tion has been tried
by a regular suit instituted by one of the parties to the dispute If, however, no suit
is instituted within two months of such order, the Registrar shall take action as is
provided in sub-section (1).

Decision of
Registrar or
his
nominee
17. (1) When the dispute is referred fo r decision, the Registrar or his nominee may, after
giving a reasonable opportunity to the parties to the dispute to be heard, make an
award in respect of the dispute, the expenses incurred, by the parties to the
dispute in connection with the proceedings and fees, expenses payable to the
Registrar or his nominee. Such an award shall not be invalid merely on the
ground that it was made after the expiry of the period fixed f or deciding the
dispute by the Registrar and shall, subject only to appeal to the Co -operative
Tribunal constituted under section 96 of the Uttar Pradesh Co-operative Societies
Act, 1965, be binding on the parties to the dispute.
(2) Nothing in the Arbitration Act, 1940, shall apply to such reference or appeal:
(3) Any person aggrieve d by a n award of the Registrar or his nominee may within
thirty days after the date on which the award is communicated to such person
appeal to the Tribunal.

1. Inserted by Sec. 16 of U. P. Act No. 19, 1975.

[The Uttar Pradesh Agricultural Credit Act, 1973] [Section 18-21]

(4) The Tribunal after hearing an appeal under this section may pass such order at
it may deem just.

Recovery of
money award
18. Every award given by the Registrar or his nominee or on appeal by the Co-
operative Tribunal under section 17 shall be deemed to be a decree of a civil
court and shall be executed in the same manner as a decree of such court by the
civil court having jurisdiction.

Powers of a bank
to proceed
against defaulting
members of a co -
operative society
19. (1) If a co-operative society is unable to pay its debts t o a bank from which it has
borrowed, by reason of its members defaulting in the payment of the moneys
due by them, the bank may direct the committee of such society to proceed
against such members by taking action under the Uttar Pradesh Co-operative
Societies Act, 1965.

U.P. Act no. XI of
1966
(2) If the commi ttee of th e co -operative society fails to proceed against i ts
defaulting members within a period of ninety days from the date of receipt of
such, direction from the bank, the bank itself may proceed against such
defaulting members, in which event, the provisions of the Uttar Pradesh Co -
operative Societies Act, 1965, the rules and the bye-laws made thereunder shall
apply as if all references to, the society or its committee in the said provisions
rules and bye-laws were references to the bank.
(3) [Notwithstanding anything in the Uttar Pradesh Co -operative Societies Act,
1965, where a bank] 1 has obtained a decree or award against a co -operative
society indebted to a t the bank may proceed to recover such moneys firstly
from the assets of the co -operative society and secondly from the members of
the co-operative society to the extent of their debts due to the society :
[Provided that if any such member who was not a party to any
proceedings referred to in sub -section (2) disputes the existence or amount of
debt due from him to the society, the objection shall be decided in the
appropriate execution proceedings.]2

Audit inspection
and inquiry reports
of societies to be
available to banks
20. The Registrar shall draw the attention of the bank financing a co -operative
society to the defects noticed in every audit or inquiry o r inspection of such
society conduct ed un der Chapter VIII of the Uttar Pradesh Co -operative
Societies Act, 1965 and shall also supply a copy each of such audit, inquiry or
inspection report if demanded in writing, by the bank.

CHAPTER 6
Miscellaneous
Exemption from
legislations relating
to money lending
and agricul turists
debt relief
21. Nothing in any law for the time being in force dealing with money -lending or
agriculturist's debt relief shall apply to financial as sistance given to an
agriculturist by a bank.

1. Substituted by section 17 (a) of U. P. Act No. 19, 1975.
2. Inserted by section 17(b) ibid.

[The Uttar Pradesh Agricultural Credit Act, 1973] [Section 22-25]

Mortgage
executed by
managers of
joint Hindu
families
22. (1) Notwithstanding anything contained in any law for the time being in -force, a
mortgage or charg e created after the commence merit of this Act by the Karta
of a joint Hindu family in favour of a bank for securing -financial assistance
shall be binding on every member of such joint Hindu family.
(2) Where a mortage or charge created in favours of a bank is called in question on
the ground that it was created by the manager of a joint Hindu f amily for a
purpose which was not an agricultural pur pose or on any other ground, the
burden of proving the same shall lie on the party alleging it.

Modified
application
of
section 8 of
Act XXXII
of
1956
23. Section 8 of the Hindu Minority and Guardianship Act, 1 956, shall apply to a
mortgage or charge in favour of a bank for securing financial assistance,
subject to the modification that reference to the court therein shall be construed
as reference to t he Collector or an Assistance Collector in authorized by the
Collector in that behalf and the appeal against the order of the Collector or such
Assistance Collector shall lie to the Commissioner.

Application
of section 4,
5 and 12 of
Act no. 36
of 1963

24. The provisions of section 4, 5 and 12 of the Limitation Act, 1963, shall mutatis
mutandis apply to all proceedings under this Act.
Power of
State
Government
to make
rules
25. (1) The State Government may, by notification in the, Gazette make rules for
carrying out the purpo se of this Act [including any rules prescribing fees i n
respect of any proceeding under this Act.]1
(2) Every rule made under this section shall be laid as soon as may be after it is
made, before each House of State Legislature while it is in session for a total
period of thirty days, which may be comprised in one session or more than one
successive sessions and if, during the said period both Houses agree in m aking
any modification in the rule or both Houses agree that the rule should not be
made, the rule shall thereafter have effect only in s uch modified form or be of
no effect, as the case may be, so however, that such modificatio n or annulment
shall be without prejudice to the val idity of anything previously done under
that rule .

1. Inserted by section 18 of U. P. Act No. 19, 1975

[The Uttar Pradesh Agricultural Credit Act, 1973] [Schedule]

1[SCHEDULE

Declaration under section 6 (1) of the Uttar Pradesh Agricultural Credit Act, 1973

Whereas, I .. .............................................................. (aged ..................................years)
S/o...……………………..r/o………………..........................................district..................
.............................................. am desirous at securing a sum of Rs....
(rupees.................... ) as financial assistance from............... Bank (............................. branch).

And w hereas, the aforesaid bank is wi lling to grant me the above amount as financial
assistance for purposes of.........................................................................

I am, the refore, making this declaration under section 6.(1) of the U. P. Agricultural Credit
Act, 1973 and bind myself as well as my heirs and legal representatives by the following
conditions, namely:-

(1) That I am an agriculturist as define d by section 2 (b) of the U. P.
Agricultural Credit Act, 1973.

(2) That I am the bhumidhar [****]2 /asami/Government lessee/ owner of the
land or other imm ovable property specified below or I have the following interest in
the land or other immovable property specified below
...............................................................
(3) That I hereby create a charge on the said land or interest therein or other
immovable property in favour of the aforesaid bank for securing financial assistance
from such bank.
(4) That I shall repay the amount of financial assistance to the bank together
with interest @ ................................ per cent per annum, in the following manner
...............

(5) That if I fail to make payment in the manner stat ed above, the property
charged may be proceeded against and I shall be liable for the costs as well as other
charges and expenses of the bank, and for the costs, if any, that the bank may have to
incur for recovering the sums due.
(6) That I shall spend and utilize the amount of financial assistance only for the
purposes hereinbefore mentioned.

(7) That the contents of this declaration are true to my personal knowledge and
no part of it is false or incorrect.

1. Substituted by section 19 of U. P. Act 19, 1975.
2. Omitted by section 4 of U. P. Act No. 25 of 1979.

[The Uttar Pradesh Agricultural Credit Act, 1973] [Schedule]

Description of the land or interest therein or other immovable
property charged in favour of the bank

Name of
village
Name of
pargana and
tahsil
Name of
district
Survey no.

City survey
no.
Boundaries
area
Plotno.
Plot hissa
Southeast –
north west
Hectares

Assessment
Rupees
Approximate
value
Encumbrances Remarks, if any
Nature Amount

IN WITNESS WHEREOF, I, Sri ................................................................... thereunder
set my hand this............................... : day of : ..................................... in the year one
thousand nine hundred and ....................................................... WITNESSES

Signed and delivered by .he above named in the presence of----

(1)

(2)

Signature of Declarant

FORWARDER with compliments of the Sub -Registrar with a request to reco rd the
particulars of the charge created under the declaration in his office.
Manager/ Agent ,
............... Bank,………….
Place ................

Returned with complements to the Manager/Agent.. .............................................
Bank..................... The charge created under the declaration has been duly filed.

Sub-Registrar

................................ ]1

1. Scheduled substituted by section 19 of U. P. Act No. 19, 1975.

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