Section 7 in Uttar Pradesh Sugar Undertakings (Acquisition) Act, 1971
7. Determination and mode of payment of compensation.
(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.(2)The State Government shall pay as compensation for the acquisition of any stocks of molasses comprised in the scheduled undertaking their value, which shall be calculated at the price prevailing immediately before the appointment day, as fixed under the Uttar Pradesh Sheera Niyantran Adhiniyam, 1964 (U.P. Act XXIV of 1964), and the provision of Cls. (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 scheduled 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-section (1), (2), (3) and (4) for the acquisition of the properties and assets referred to in those sub-section, the State Government shall pay as compensation for the acquisition of every scheduled undertaking specified in Column 2 of 1[and 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-sections (6) and (9), and the same shall be paid to the persons entitled thereto in accordance with the decisions 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 referring to in sub-section (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 undertaking:(b)any amount due to any cane-growers or any cane-grower's cooperative societies in respect of the price of sugarcane supplied by such cane-growers or by members of such society to the scheduled undertaking before the appointed day;(c)any amount of wages, relating allowance, bonus, provident fund or other payment due to person employed as workmen (within the meaning of the U.P. Industrial Disputes Act. 1917) in connection with the scheduled undertaking immediately before the appointed day;(d)any amount due in respect of either the employer's contribution or the employee's contribution realised 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, not being an amount referred to in Cl. (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 load, 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 provisionally deducted under Cl. (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 amount referred to in Cls. (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 in respect thereof, and it shall be open to the State Government to obtain relevant information either from the Corporation 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 giving particulars of the deduction 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 believed 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 sub-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 makes 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:(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 than amounts mentioned in Cls. (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 dates or respective date 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 proviso 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 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 undertaking; or(b)to require the State Government to pay 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.
