Wholesale trading in specified commodity in market area to be regulated by licence

(1) On and after the date specified by the local authority, by notification (hereafter in this section referred to as the notified date), no person shall, within a market area.—(a) set up, establish or use, or continue or allow to be continued, any place for the wholesale trade of any specified commodity: or (b) operate as weighman, measurer, trader, warehouserman or in any other capacity in relation to the wholesale trading of any specified commodity; or (c) carry on any wholesale trade of any specified commodity in any place in the market area other than in the market or special market, as the case may be exmpt under, and in accordance with the conditions of, a licence granted to him in that behalf by the market committee under this Act: Provided that—(i) All orders granting, renewing, refusing to grant or refusing to renew, cancelling or suspending any licence shall be in writing and no order refusing to grant or renew or cancelling or suspending a licence shall be made without giving the person concerned a reasonable opportunity of stating his case; (ii) the reasons for any such refusal, cancellation or suspension of a licence shall be recorded in writing; (iii) the market committee shall not refuse to grant or renew licence to any registered wholesale trader. (2) Nothing contained in sub-section (1) shall apply to a warehousing corporation established or maintained by the State or Central Government or a warehouserman licensed under the Tamil Nadu Warehouses Act, 1951 in respect of storage, weighment or measurement of any specified commodity accepted for warehousing. (3) A licence under sub-section (1) may be refused to a person,—(a) whose licence was cancelled, and a period of three years has not elapsed since the date of the cancellation; or (b) who has been convicted of an offence where such offence relates to his business or his integrity as a man of business; or (c) in regard to whom the market committee is satisfied, after such enquiry as it considers adequate, that he is a benamidar for, or a partner with, any other person to whom a licence may be refused under clause (a) or clause (b). (4) If a market committee is satisfied, either on a reference made to it in this behalf, or otherwise, that—(a) a licence granted under sub-section (1) has been obtained by misrepresentation or fraud, or (b) the holder of a licence has contravened, or failed to comply with, any of the provisions of this Act or the rules or by laws made under this Act or any of the conditions of the licence, then, without prejudice to any other penalty to which the holder of the licence is liable under this Act, the market committee may, subject to such rules as may be made in this behalf, cancel or suspend the licence, after giving the holder of the licence a reasonable opportunity of showing cause against such cancellation or suspension. (5) Any person aggrieved by the decision of the market committee—(a) refusing to grant, or (b) cancelling or suspending a licence may, within such time as may be prescribed, appeal to the local authority and the local authority may make such order in the case as it may think fit. (6) A licence granted under sub-section (1) shall be valid for a period of three years and may be renewed from time to time and the provisions of this Act shall, so far as may be, apply in relation to the renewal of a licence as they apply in relation to the grant of a licence. (7) Every person to whom a license is granted under sub-section (1) shall comply with the provisions of this Act, the rules and by laws made under this Act and the conditions specified in the licence. (8) (a) Notwithstanding anything contained in any law for the time being in force, no local authority, including the Madras City Municipal Corporation constituted under the Madras City Municipal Corporation Act, 1919 having jurisdiction over the market area, shall, on and after the notified date, establish, authorise or continue, or allow to be established, authorised or continued, any place in the local area including the market area as a market or a place to carry on the wholesale trade in respect of any specified commodity and any permission or licence already granted by such local authority shall stand cancelled on the notified date. (b) Upon such cancellation of any permission or licence, if the holder of such permission or licence refuses to discontinue his wholesale trade in respect of any specified commodity in the place referred to in clause (a), the market committee may, by notice in writing, direct such person, within a period of one month or such further period as may be specified therein, to stop carrying on the wholesale trade in such place. (c) If any direction given under clause (b) is not complied with, within the time specified in the notice, the market committee may, without prejudice to any penalty that may be imposed for any contravention of the provisions of this section, have such direction carried into effect at his cost and have the amount thereof recovered from the defaulter in the same manner as arrears of land revenue. (d) Upon such cancellation of any permission or licence, the holder of such permission or licence shall not be entitled to claim and receive any compensation, but shall be entitled to claim and receive such amount towards refund of the fees paid by him as is proportional to the unexpired period of such permission or licence.