Chapter II Chapter II

Licensing of Industrial Premises

Save as otherwise provided in this Act, no employer shall use or allow to be used any place or premises as an industrial premises unless he holds a valid licence issued under this Act and no such premises shall be used except in accordance with the terms and conditions of such licence.

1. (1) Any person who intends to use or allows to be used any place or premises as industrial premises shall make an application in writing to the competent authority, in such form and on payment of such fees as may be prescribed for a licence to use, or allow to be used, such premises as an industrial premises: Provided that nothing contained in this section shall apply to an independent weaver carrying on the weaving operation in his dwelling place assisted only by the other members of his family.
2. (2) The application for a licence shall specify the number of employees proposed to be employed at any time of the day in the place or premises and shall be accompanied by a plan of the place or premises prepared in such manner as may be prescribed.
3. (3) The competent authority shall, in deciding whether to grant or refuse a licence, have regard to the following matters -
   • (a) the suitability of the place or premises which is proposed to be used for the weaving operation;
   • (b) the financial resources of the applicant including his financial capacity to meet the demands arising out of the provisions of this Act or of any other law for the time being in force relating to welfare of labour;
   • (c) whether the application is made bona fide on behalf of the applicant himself or in benami of any other person;
   • (d) the welfare of the labour in the locality, the interest of the general public and such other matters as may be prescribed.
4. (4) (a) A licence granted under this section shall not be valid beyond the financial year in which it is granted, but may be renewed every year on payment of such fees as may be prescribed.
   • (b) An application for renewal of a licence granted under this Act shall be made at least thirty days before the expiry of the period thereof, on payment of such fees as may be prescribed and where such application has been made, the licence shall be deemed to continue, notwithstanding the expiry of the period thereof, until the renewal of the licence or the rejection of the application, as the case may be: Provided that if any application for a licence or for renewal of the licence is not made within thirty days of commencement of any process connected with weaving operation or before thirty days of expiry of any licence already issued, but is made after this period of thirty' days, a surcharge of 25 per cent of the fee to be prescribed for issue or renewal of the licence, as the case may be, shall be levied, subject, however, to the condition that such an option to get a licence or renewal with surcharge shall be allowed only upto a period of ninety days either after the commencement of any operation connected with the weaving process or after the expiry of the licence already issued, but not renewed under the foregoing provisions of this section. In that event, it shall be construed that the weaving operation is carried on without a valid licence, which shall in turn be a contravention of the provisions of this Act warranting penal action as prescribed.
   • (c) The competent authority shall, in deciding whether to renew a licence or not, have regard to the matters specified in sub-section (3).
5. (5) The competent authority may, after giving the holder of a licence an opportunity of being heard, cancel or suspend any licence granted or renewed under this Act, if it appears to such authority that such licence has been obtained by misrepresentation or fraud or that the licensee has contravened or failed to comply with any of the provisions of this Act or the rules made thereunder or any of the terms and conditions of the licence.
6. (6) The Government may issue in writing to the competent authority such directions as the Government may consider necessary in respect of any matter relating to the grant or renewal of licences under this section.
7. (7) Subject to the foregoing provisions of this section, the competent authority may grant or renew licences under this Act on such terms and conditions as it may determine and where the competent authority refuses to grant or renew any licence, it shall do so by an order in writing communicated to the applicant giving the reasons for such refusal within a reasonable time.

Any person aggrieved by the decision or order of the competent authority refusing to grant or renew a licence or cancelling or suspending a licence under section 4 may, within thirty days of receipt of the said order and on payment of such fees, not exceeding twenty rupees, as may be prescribed, appeal to such authority as the Government may, by notification, specify in this behalf, and such authority may, by an order in writing either confirm, modify or reverse any order refusing to grant or renew a licence or renew a licence or suspending or cancelling a licence. The order of such appellate authority shall be final and binding ami shall not be questioned in any Court of Law.