Grounds on which licence may be refused or cancelled.

(1) The Commissioner of Police may refuse to grant a licence for a public conveyance if in his opinion the conveyance is, owing to defective construction, inadequate equipment or otherwise, unfit for the purpose for which it is intended. (2) The Commissioner of Police may refuse to renew, and may at any time suspend or cancel a licence for a public conveyance if- (i) the conveyance has in his opinion become unfit for the purpose for which it is intended, or (ii) the licensee has committed any breach of any provision of this Act or of a rule made thereunder or of a condition of the licence. (3) When the Commissioner of Police refuses to renew or suspends or cancels a licence for a public conveyance, he shall erase the inscription made thereon under sub-section (2) of section 3.