THE UTTAR PRADESH AGRICULTURAL CREDIT ACT, 19731

1 · . For S. O. R. see Uttar Pradesh Gazette (Extraordinary) dated March 15, 1973.

2 · . This Act came into force w.e.f. January 1, 1974

1 · . Ins. by s.2 of U. P. Act No. 24 of 2005.

2 · . Subs. by section 2 (i) of U. P. Act No. 25, 1979.

3 · . Subs. by s. 2 (ii) of U. P. Act No. 19, 1975.

4 · . Subs. by s. 2 (ii) of U. P. Act No. 25, 1979.

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, notwithstanding that he may not be owner of the land [on and from which such crop or produce is raised.] 4

1 · . Subs. by s. 2 (iii) of U. P. Act No. 19, 1975 and be deemed always to have been substituted.

2 · . Omitted by Sec. 3 of U. P. Act No. 25, 1979.

3 · . Subs. by s. 3 of U. P. Act No. 19, 1975.

4 · . Subs. by Sec 4 (a) ibid.

5 · . Omitted by Sec. 4 (b) ibid.

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.] 2

7 · [Notwithstanding anything contained in the Uttar Pradesh Co -operative Societies Act, 1965 and Uttar Pradesh Co-operative Land Development Bank Act, 1964 ] 4 or any other law for the time being in force and notwithstanding that any land or interest therein stands already charged or mortgaged to a co-operative society, it shall be lawful for an agriculturist to create a charge or mortgage on such land or interest therein in favour of a bank as security for any financial assistance given to the agriculturists by that bank.

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 Development Banks Act, 1964 or any other law for the time being in force—

1 · . Omit by Sec. 5 of U. P. Act No. 19, 1975.

2 · . Subs. by Sec. 6 ibid.

3 · . Ins. by Sec. 7 ibid.

4 · . Subs. by sec. 8 ibid.

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 executed 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, variation or mortgage, as the case may be, provided the bank has sent to the Sub-Registrar within 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 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 filled it in Book No. 1 prescribed under section 51 of the Registration Act , 1908.

9 · -B. Where any declaration or variation in respect of a charge, or mortgage of any land or interest therein or other immovable property has been registered in accordance with section 9 and the amount 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 mutatis mutandis apply to the registration of such certificate.] 3

10 · (1) Notwithstanding anything contained in any law relating to land tenures or any other 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 the outstanding lease or create any tenancy rights on such land or interest therein

1 · . Subs. by s. 9 (a) of U. P. Act No. 19, 1975.

2 · . Ins. by s. 9 (b) ibid.

3 · . Ins.by s. 10 ibid .

10 · -B. (1) Where any sum in respect of any financial 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 distrait and sale of the movable property or the crop or other produce charged in favour of the bank.

1 · . Ins. by s. 11 of U. P. Act No. 19, 1975.

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 specified by the State Government by notification in the Gazette.

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 any financial assistance granted to him.

1 · . Subs. by s. 12 (a) of U. P. Act No. 19, 1975.

2 · . Omit. by s. 12 (b) ibid.

3 · . Ins. by s. 13 ibid.

12 · -B. (1) Where an agriculturist dies before the dues in respect of any financial assistance 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 Collector referred to in section 11 -A may proceed against the legal representatives of the agriculturist for the recovery of the dues.

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 promise or discharge the liability of an agriculturist in case of his default and to the legal representatives of such surety.] 1

15 · (1) Notwithstanding anything contained in the Uttar Pradesh 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 assistance to a Co -operative Society and the Co-operative Society receiving such assistance, other than disputes regarding 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.

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 Registrar shall decide the dispute himself or refer it for disposal to any other officer nominated by him.

1 · . Ins. by s. 16 of U. P. Act No. 19, 1975.

17 · (1) When the dispute is referred for 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 for 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.

1 · . Subs. by Sec. 17 (a) of U. P. Act No. 19, 1975.

2 · . Ins. by Sec. 17 (b) ibid.

8o · f the Hindu Minority and Guardianship Act, 1956, 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 the Collector or an Assistance Collector 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.

1 · . Subs. by s. 19 of U. P. Act 19, 1975.