Grant of license.

3. (1) No cotton ginning factory or cotton pressing factory shall be worked without a license granted to the owner thereof by such licensing authority, in such form, subject to such conditions and on payment of such fee, as may be prescribed: Provided that a license for which the prescribed fee has been paid shall be liable to be refused only on the ground that the owner or person incharge of a cotton ginning or a cotton pressing factory in respect of which a license is applied for has been convicted of an offence punishable under this Act or has not complied with the conditions prescribed for grant of a license. (2) If any person works a cotton ginning or cotton pressing factory in respect of which a license has not been granted or has been suspended, withdrawn or cancelled, such person shall be punishable,- (a) on first conviction, with fine which may extend to one thousand rupees and if the offence is continued ofr more than one day, with an additional fine which may extend to two hundred rupees for every day subsequent to the first day for which the offence has continued; and (b) on every subsequent conviction, with fine which may extend to three thousand rupees and, if the offence has continued for more than one day, an additional fine which may extend to four hundred rupees for every day subsequent to the first day during which the offence has continued. (3) The licensing authority shall pass an order on the application for the grant of license within a period of ninety days from the date of receipt of the application. In case the grant of license is reused, the reasons for such refusal shall also be communicated in writing to the applicant within the said period failing which the license shall be deemed to have been granted. (4) An appeal against the order of refusal to grant license under sub-section (3) shall lie to the State Government within a period of thirty days from the date of communication of such order. (5) A license shall be liable to be suspended, withdrawn or cancelled on the ground that the owner has been convicted of an offence under this Act or has not complied with an order passed by the competent authority under this Act or rules made there under: Provided that before taking such action the owner shall be served with a notice to show cause within a period of thirty days from the date of the receipt of notice. (6) An appeal against the order passed under sub-section (5) shall lie to the State Government within a period of thirty days from the date of communication of such order.