The Tamil Nadu Scrap Merchants and Dealers in Second-Hand Property and Owners of Automobile Workshops and Tinker Shops (Regulation, Control and Licensing) Act, 1985

Short title, extent and commencement.-

1. (1) This Act may be called the Tamil Nadu Scrap Merchants and Dealers in Second-Hand Property and Owners of Automobile Workshops and Tinker Shops (Regulation, Control and Licensing) Act, 1985.
2. (2) It extends to the whole of the State of Tamil Nadu.
3. (3) It shall come into force on such date as the Government may, by notification, appoint.

In section 3 of the Tamil Nadu Scrap Merchants and Dealers in Second-Hand Property and Owners of Automobile Workshops and Tinker Shops (Regulation, Control and Licensing) Act, 1985 (hereinafter referred to as the principal Act),-

1. (i) in the marginal heading, for the expression 'obtain licences annually", the expression "obtain licences" shall be substituted;
2. (ii) for sub-section (2). the following sub-section shall be substituted, namely:- "(2) Every licence granted under this Act shall expire on the last day of the third year for which it was granted but may be renewed, from time to time, for a period of three years at a time".

Scrap merchants and dealers in second-hand property and owners of automobile workshops and tinker shops to obtain licences annually.-

1. (1) No scrap merchant or dealer in second-hand property or owner of an automobile workshop or a tinker shop shall, after the date of commencement of this Act, carry on or continue to carry on business as such scrap merchant or dealer in second-hand property or owner of an automobile workshop or tinker shop in any area in this State, unless he has obtained a licence in his behalf under this Act.

Grant and refusal of licences.-

1. (1) Every application for licence under section 3 shall be in writing to such authority as may be prescribed (hereinafter referred to as the licensing authority).
2. (2) In considering the application for the grant of a licence under this section, the licensing authority shall have regard to the following matters, namely :-
   • (a) the interest of the public generally;
   • (b) whether the applicant has been convicted of any offence punishable under Chapter XVII of the Indian Penal Code (Central Act XLV of 1860);
   • (c) whether permission has been obtained under section 5 in respect of the place of business;
   • (d) such other matters as may be prescribed.
3. (3) Before any licence is refused under sub-section (2), the applicant shall be given an opportunity to make his representations within a reasonable time, not ordinarily exceeding fifteen days and any representation made by him in this behalf shall be duly taken into consideration before final orders are passed.
4. (4) In granting or refusing to grant a licence under this section, the licensing authority may consult such authority or officer as may be prescribed.

Permission to be made for establishment of any place of business of scrap merchant or for dealing in second-hand property or automobile workshop or tinker shop.-

1. (1) Every person intending to establish any place of business of scrap merchant or for dealing in second-hand property or any automobile workshop or tinker shop shall, before establishing such place, make an application to the licensing authority for permission to undertake such business.
2. (2) The application shall be accompanied by-
   • (a) a plan of the place of business or automobile workshop or tinker shop prepared in such manner as may be prescribed;
   • (b) such other particulars as may be prescribed.
3. (3) The licensing authority shall, as soon as may be, after the receipt of the application-
   • (a) grant the permission applied for subject to such conditions as it thinks fit to impose; or
   • (b) refuse permission if it is of opinion that such establishment-
     • (i) is objectionable by reason of the density of population in the locality; or
     • (ii) is likely to cause a nuisance to the residents of the locality; or
     • (iii) is likely to cause traffic or health hazards to the residents of the locality; or
     • (iv) does not contain adequate space for parking the vehicles which would be normally expected.
4. (4) Before any permission is refused under clause
   • (b) of sub-section (3), the applicant shall be given an opportunity to make his representation within a reasonable time, not ordinarily exceeding fifteen days and any representation made by him in this behalf shall be duly taken into consideration before final orders are passed.
5. (5) Before granting or refusing permission under this section, licensing authority shall consult and have due regard to the opinions of the health officer and traffic police as regards the suitability of the place where the business of scrap merchant or dealer in second-hand property or the automobile workshop or tinker shop is to be established.
6. (6) If orders on an application for permission under sub-section
7. (1) are not received by the applicant within sixty days after the receipt of the application by the licensing authority, permission shall be deemed to have been granted subject to any law for the time being in force regarding the establishment of the automobile workshop or tinker shop.
8. (7) Any person aggrieved by an order of the licensing authority under this section refusing permission may, within such time as may be prescribed, appeal to such authority as the Government may, by notification, specify, and such authority may make such order in the case as it thinks fit.
9. (8) Every permission shall be granted subject to such conditions as may be specified in the permission and on payment of such fee not exceeding two hundred rupees.

Provision in respect of certain existing places of business.-

1. (1) Notwithstanding anything contained in the provisions of sub-section (2), every scrap merchant or dealer in second-hand property or an owner of an automobile workshop or tinker shop carrying on the business as such scrap merchant or dealer in second-hand property or the business of automobile workshop or tinker shop in any place of business on the date of the commencement of this Act shall be entitled to continue to carry on business at such place of business.
2. (2) No person entitled to continue business under sub-section
3. (1) shall continue to carry on such business after expiry of a period of six months from the date of the commencement of this Act unless he obtains a licence under this Act for carrying on such business and a permission under this Act for the place of business.

Scrap merchants and dealers in second-hand property and owners of automobile workshops or tinker shops to keep and maintain accounts and books

1. (1) Every scrap merchant or dealer in second-hand property and every owner of an automobile workshop or tinker shop shall be bound to keep and maintain such accounts and books and in such manner as may be prescribed and shall be responsible for the correct and up-to-date maintenance of such accounts and books. The accounts and books shall contain the following particulars, namely :-
   • (a) the names and addresses of the persons from whom the materials relating to the business were purchased;
   • (b) the dates of such purchases and the amounts paid for such purchases;
   • (c) such other matters as may be prescribed.
2. (2) All records or entries made in the accounts and books referred to in sub-section
3. (1) shall be either in Tamil or English or in such language of the locality as may be prescribed; and all such accounts and books shall be open to inspection at any time by the licensing authority or the police officer having jurisdiction.

Scrap merchant or dealer in second-hand property and owner of automobile workshop or tinker shop to keep and maintain a register of workers employed Every scrap merchant or dealer in second-hand property and every owner of an automobile workshop or tinker shop, shall, in addition to the accounts and books referred to in section 7, also keep and maintain an up-to-date register of workers employed by him. Such register shall contain the following particulars, namely :-

1. (1) the names and addresses of the workers;
2. (2) passport size photographs of the workers taken and affixed against the names of the workers;
3. (3) character and conduct roll of the workers;
4. (4) such other matters as may be prescribed.

Power to cancel or suspend of any licence

1. (1) The licensing authority may, of its own motion or on complaint, and after giving the licensee an opportunity to be heard, by an order, in writing, cancel or suspend any licence granted under this Act, if it is satisfied that the licensee has carried on the business in contravention of the provisions of this Act, or the rules made thereunder or has acted in any manner, for which such authority could have refused the grant the licence under sub-section
2. (2) of section 4, or has failed to comply with the notice of that authority, after the grant of the licence.
3. (2) Without prejudice to the generality of the powers under sub-section (1), the licensing authority may cancel or suspend the licence if the licensee is convicted of any offence against this Act or any cognizable and non-bailable offence, or if he is found to be maintaining false accounts.

1. (3) A list of articles believed to have been stolen may be delivered by the police to any such merchant, dealer or owner licensed under this Act and thereupon it shall be the duty of such merchant, dealer or owner-
   • (a) if any article answering the description of any of the articles set forth in any such list is offered to him by any person by way of sale or otherwise, to proceed in accordance with the provisions of sub-section (2); and
   • (b) if any such article is already in his possession, forthwith to communicate to the nearest police station the facts of the case (including full particulars as to the name and address of the person concerned in the delivery of the article to the merchant, dealer or owner) and also, if so required by the police, to deliver the article to them.
2. (9) Every scrap merchant, dealer in second-hand property or owner of an automobile workshop or tinker shop buying any article knowing or having reason to believe the same to be stolen property shall be punished with imprisonment of either description for a term which may extend to three years and with fine.

Penalty for carrying on business without licence Whoever carries on the business of scrap merchant or dealer in second-hand property or the business of running an automobile workshop or a tinker shop without licence or otherwise than in conformity with the terms and conditions of a licence shall be punished with imprisonment which may extend to one year or with fine which may extend to five thousand rupees.

Offences by companies

1. (1) Where an offence under this Act has been committed, by a company, every person who, at the time the offence was committed, was in-charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
2. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect, on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary, or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly: Explanation.-For the purposes of this section,-
   • (a) "company" means any body corporate, and includes a firm or other association of individuals; and
   • (b) "director" in relation to a firm means a partner in the firm.

Penalties.—Whoever contravenes any of the provisions of this Act or any rule made thereunder or of any terms and conditions of a licence or permission granted shall, if no other penalty is elsewhere provided in this Act for such contravention, be punished with imprisonment which may extend to one year or with fine which may extend to five thousand rupees and, if such person has been previously convicted whether under this section or any other provision contained in this Act, with imprisonment which may extend to two years or with fine which may extend to ten thousand rupees.

Power to try offences.—

1. (1) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act.
2. (2) Notwithstanding anything contained in Section 29 of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974), it shall be lawful for the Magistrates specified in sub-section
3. (1) to pass a sentence of fine not exceeding ten thousand rupees.
4. (3) No court shall take cognizance of an offence punishable under this Act other than an offence punishable under section 10 except on a complaint in writing made by any prescribed authority.

Cognizance of offences.—Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (Central Act 2 of 1974), any offence punishable under section 10 shall be a cognizable offence within the meaning of that Code:

Power to make rules Power to make rules.—

1. (1) The Government may make rules for carrying out all or any of the purposes of this Act. (2)
   • (a) All rules made under this Act shall be published in the Tamil Nadu Government Gazette; and unless they are expressed to come into force on a particular day, shall come into force on the day on which they are so published.
   • (b) All notifications issued under this Act shall, unless they are expressed to come into force on a particular day, come into force on the day on which they are so published.
2. (3) Every rule made or notification issued under this Act, shall, as soon as possible after it is made or issued, be placed on the table of both Houses of the Legislature, and if, before the expiry of the session in which it is so placed or the next session, both Houses agree in making any modification in any such rule or notification or both Houses agree that the rule or notification should not be made or issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.

Saving.—The provisions of this Act shall be in addition to and not in derogation of, any other law for the time being in force, and nothing contained herein shall exempt any person from any proceeding by way of investigation or otherwise which might, apart from this Act be instituted against him.