Section 4 — Licences.

4. Licences.—(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 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. 

(2) The application shall specify the maximum 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) 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 manufacture of 

beedi or cigar or both; 

(b) the previous experience of the applicant;  

(c) the financial resources of the applicant including his financial capacity to meet the demands 

arising out of the provisions of the laws for the time being in force relating to welfare of labour; 

(d) whether the application is made bona fide on behalf of the applicant himself or in benami of 

any other person; 

                                                           
1. Ins. by Act 41 of 1993, s. 2 (w.e.f. 22-5-1993). 

2. Added by s. 2, ibid. (w.e.f. 22-5-1993). 



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(e) welfare of the labour in the locality, the interest of the public generally and such other matters 

as may be prescribed. 

(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 from financial year to financial year. 

(b) An application for the 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 an 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, as the case may be, the rejection of the application 

for the renewal thereof. 

(c) The competent authority shall, in deciding whether to renew a licence or to refuse a renewal 

thereof, have regard to the matters specified in sub-section (3). 

(5) The competent authority shall not grant a renew a licence unless it is satisfied that the provisions 

of this Act and the rules made thereunder have been substantially complied with. 

(6) 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 it 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 or conditions of the 

licence. 

(7) The State Government may issue in writing to a competent authority such directions of a general 

character as that Government may consider necessary in respect of any matter relating to the grant or 

renewal of licences under this section. 

(8) 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 communicated to the applicant, 

giving the reasons in writing for such refusal.