Chapter III ISSUE, RENEWAL AND CANCELLATION OF LICENCES TO MANUFACTURERS AND DEALERS

1. (1) Save as otherwise provided in this section, no person shall manufacture, or commence or carry on business as a manufacturer or dealer of, any dangerous machine unless he holds a valid licence issued in this behalf by the Controller:

Provided that a person engaged in the manufacture of, or carrying on business as a manufacturer or

dealer of, any dangerous machines of any class immediately before the appointed day in relation to dangerous machines of such class may continue to manufacture such machines or carry on such business without such a licence for a period of one month from that date, and if he makes an application for such licence under this section within the said period of one month, till the communication to him of the order of the Controller disposing of such application. Explanation.—For the purposes of this proviso, “appointed day” means,—

1. (i) in relation to the class of dangerous machines being power threshers, the date of commencement of this Act;
2. (ii) in relation to any other class of dangerous machines, the date with effect from which such machines have been specified to be dangerous machines by the Central Government by notification under clause (c) of section 3, or in the case of a State in which this section has come into force with effect from a later date, such later date.

1. (2) A licence issued under this section—
   • (a) shall be valid for a period of five years;
   • (b) may be renewed from time to time, for a like period; and
   • (c) shall be in such form, and shall be subject to such conditions, as may be prescribed by the Central Government.
2. (3) A person who intends to commence the manufacture, or carry on business as manufacturer or dealer, of any dangerous machine shall make an application in such form and on payment of such fees, not exceeding five hundred rupees, as may be prescribed, for the issue of a licence.
3. (4) No application for the issue of a licence to commence the manufacture, or to carry on business as a manufacturer or dealer, of any dangerous machine shall be granted unless the Controller, after making such inquiry as he thinks fit, is satisfied—
   • (a) in the case of a manufacturer carrying on business at the commencement of this Act, of manufacturing any dangerous machine, that such machine complies with the standards prescribed under section 13; and
   • (b) in the case of a person who intends to commence business, after such commencement, as a manufacturer of a dangerous machine, that the applicant has declared that he would manufacture such machine in accordance with the standards laid down by or under this Act.
4. (5) An application for the renewal of a licence issued under this section shall be made not less than forty-five days before the date of expiry of the period of validity thereof and shall be accompanied by such fees, not exceeding two hundred rupees, as may be prescribed.
5. (6) No application for the renewal of a licence for the manufacture, or for the carrying on the business as a manufacturer, of a dangerous machine shall be rejected unless—
   • (a) the holder of such licence has been given a reasonable opportunity of presenting his case; and
   • (b) the Controller is satisfied that—
     • (i) the application for such renewal has been made after the expiry of the period specified therefor: Provided that an application for the renewal of a licence made after the expiry of the specified period may be entertained on payment of such late fees, not exceeding one hundred rupees, as may be prescribed;
     • (ii) any statement made by the applicant at the time of the issue or renewal of the licence was incorrect or false in material particulars;
     • (iii) the applicant has omitted or failed to manufacture any dangerous machine in accordance with the prescribed standards; or
     • (iv) the applicant has contravened any term or condition of the licence or any provision of this

Act, or any rule or order made thereunder or of any law for the time being in force in so far as

such law prohibits the bringing into or taking out of India, any dangerous machine.

1. (7) Every person to whom a licence has been issued or renewed under this section shall comply with

the terms and conditions specified in the licence and the provisions of this Act and the rules and orders

made thereunder.

1. (8) Every person to whom a licence has been granted or renewed under this section shall ensure that

every person employed by him complies, in the course of such employment, with the provisions of this

Act or any rule or order made thereunder.

1. (9) Every order granting or rejecting any application for the issue or renewal of a licence under this section shall be made in writing.
2. (10) Every licensed dealer and every licensed manufacturer shall display his licence at a conspicuous place of the premises in which he carries on business as such licensed dealer or manufacturer.

1. (1) The Controller may, if he has any reasonable cause to believe that the holder of a licence granted under section 9 has made a statement in, or in relation to, any application for the issue or renewal of a licence, which is incorrect or false in material particulars, or has contravened any provision of this Act or any rule or order made thereunder or of any other law for

the time being in force which regulates the bringing into or taking out of India any dangerous machine,

suspend such licence pending the completion of any inquiry or trial against the holder of such licence, for making such incorrect or false statement or for such contravention, as the case may be: Provided that no such licence shall be suspended for a period exceeding ten days unless the holder thereof has been given a reasonable opportunity of showing cause against the proposed action.

1. (2) The Controller may, if he is satisfied after making such inquiry as he may think fit, that the holder of any licence issued or renewed under this Act has made such incorrect or false statement as is referred to in sub-section (1), or has omitted or failed to manufacture any dangerous machine in accordance with the prescribed standards or has contravened the provisions of such law, rule or order, as is referred to in that sub-section, cancel such licence: Provided that no licence shall be cancelled unless the holder thereof has been given a reasonable opportunity of showing cause against the proposed action.
2. (3) Every person whose licence has been suspended or cancelled shall, immediately after such suspension or cancellation, stop functioning as such licensee and shall not resume business as such licensee until the order of such suspension or cancellation has been vacated.
3. (4) Every person who holds a licence which is suspended or cancelled shall, immediately after such suspension or cancellation, surrender such licence to the Controller.

A person licensed to

manufacture or carry on business as a manufacturer or dealer of any dangerous machines who discontinues such manufacture or business or who intends to discontinue such manufacture or business, may make an application to the Controller for the cancellation of his licence, and thereupon, the Controller may cancel such licence.

Where any firm has been licensed under this Act to manufacture or carry on business as a dealer or manufacturer of a dangerous machine, such licence shall, notwithstanding anything contained in this Act, become invalid on and form the date on which there is a change in the partnership of such firm, unless such change in the partnership of the firm has been approved by the Controller.