Section 125A in The U.P. Co-operative Societies Act, 1965
125A. [ [Substituted by U.P. Act 29 of 2007, Section (w.r.e.f. 1-7-2007).]
(1)(a)Notwithstanding anything to the contrary contained in any other provision of this Act or the rules made thereunder or the bye-laws of the societies concerned or in any other law for the time being in force, where a Co-operative Sugar Mill in which Majority of shares are held by the State Government, and the State Government is satisfied that neither the Sugar Mill is being run as sound business nor there is any chance of it being run as sound business, it may recommend the Registrar to transfer such Co-operative Sugar Mill to any other society, company, firm or body and on the receipt of the recommendation of the State Government, the Registrar shall after consulting the financing Bank or financing institution, if any, to which such sugar mill is indebted, call upon the committee concerned by notice it writing containing such particulars as may be prescribed and within such time as may be specified in the notice to transfer its assets or its assets and liabilities in whole or part, to any other society or a company or a firm or a body, whether incorporated or not, on such terms and conditions as may be formulated in the manner prescribed, and on such transfer the society formed for such sugar mill under this Act shall stand dissolved.(b)If, within the time specified in the notice referred to in clause (a), the society fails to comply with the direction of the Registrar, he shall after giving at opportunity in the manner prescribed, the committee of such society and the creditors thereof to make their representation, if any, by order notified in the Gazette, take such action as he deems in the matter, including the issue of a direction to the society to transfer its assets or its assets and liabilities, in whole or in part in the manner referred to in clause (a):Provided that in the case of Mill Societies where the State Government's share capital is more than 50 per cent, it will not be mandatory for the registrar to get a resolution passed from the general body of the society to act as per the provisions it clauses (a) and (b).(2)It shall be competent for the State Government to make rules and to give such directions as it may deem fit to the Registrar, for the purposes of this section.Explanation. - For the purpose of this section 'Company' means a company as defined in the Companies Act, 1956.]
