Section 7(1) in Uttar Pradesh Sugar Undertakings (Acquisition) Act, 1971
(1)(a)Subject to the provisions of Cls, (b) and (c), the State Government shall pay as compensation for any sugar stocks comprised in a scheduled undertaking their value, which shall be calculated at the ex-factory market price prevailing immediately before the appointed day, minus basic excise duty and additional excise duty in lieu of sales-tax, leviable thereon.(b)Such sugar stocks shall be disposed of from time to time [if necessary, by arrangement with any bank which has made advances before the appointed day on the security thereon], and as and when the stocks are disposed of , so much of the said composition as relates to the quantity disposed of shall be paid in cash by deposit with the prescribed authority in accordance with the provisions of sub-section (6) and (9).(c)Out of the said compensation the amount of any advance or, as the case may be, proportionate amount of advance, made on the security of the quantity disposed of together 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 deposited as aforesaid with the prescribed authority and be paid to the person entitled thereto in accordance with the decision 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 8, Section 9 or Section 11.
