TMI Blog1989 (2) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... of Dealers) Rules, 1969 the renewal application has to be made in the prescribed form atleast one month before the expiry of the period of validity of the licence. It was also seen by the Department that during the validity period of the licence the appellant had not done any business at all from the date of issue of the licence. Therefore, proceedings were initiated by issue of a show cause notice dated 9-6-87 asking him to show cause why the application for renewal should not be rejected for the delayed submission of the application beyond the period prescribed under Rule 3(a) and for not having transacted any business at all in terms of Rule 3(ee) of the Gold Control (Licensing of Dealers) Rules, 1969. On a consideration of the reply thereto the Deputy Collector found that there was no case for the renewal of the licence and rejected the application under the abovesaid Rules. This order was upheld by the Collector (Appeals). 3. Shri K.V. Vasudevan, the learned Consultant appearing for the appellant contended that the provisions of Rule 3(a) relating to submission of the application for renewal atleast one month before the expiry of the validity period is only regulatory and no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o financial constraints and later due to certain journeys performed in fulfilling family obligations besides his own sickness. The learned Consultant also pointed out that the provisions of Rule 3(ee) would indicate that even in the case of a low turnover if it is properly explained, the renewal of the licence should not be denied and in this case the appellant had given a satisfactory explanation for the absence of turnover, which has not been given due consideration. According to the learned Consultant the distinction drawn by the Collector (Appeals) between reduction in the turnover and no turnover is a distinction without a difference. He pleaded that the appellant herein belongs to a traditional family of gold dealers and has been in the trade as a partner for a long period and knows no other trade, and as such, a sympathetic consideration should be given. 4. Shri Bhatia, the learned Senior Departmental Representative appearing for the Department contended that even though Article 19 of the Constitution embodied the right to trade yet the Article itself contains the provision that it is subject to reasonable restriction as given in Article 19(b) which can be imposed in publi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the licence. It states that a dealer shall be qualified for the renewal of the licence if he fulfils the following conditions. The condition at clause (a) of Rule 3 is that the application has been made in the prescribed form atleast one month and not more than two months before the expiry of the period of validity thereof; condition in clause (ee) is to the effect that the applicant has been a wholesale dealer in standard gold bar, article or ornament or the turnover of the applicant was not too low, and, in Explanation-I under this clause, it has been laid down that for the purposes of this clause, turnover shall be deemed to be too low if it is on the average, not more than 50 gms. per month except where the applicant satisfies the Administrator for that there are sufficient reasons for an average monthly turnover of lower than 50 gms. Section 27(1) of the Act reads as follows :- 27. Licensing of the dealers. - (1) Save as otherwise provided in this Act, no person shall commence, or carry on, business as a dealer unless he holds a valid licence issued in this behalf by the Administrator. The appellant herein obtained a licence whose validity expires on 31-12-86. He was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, with the result that he really did not get down to the task of setting of his business as a licensed gold dealer. The appellant claims that this is a sufficient explanation, and that such an explanation should have been considered by the lower authorities as provided in the Explanation-I to clause (ee) of Rule 3 itself, according to which low turnover will not be a bar to renewal of a licence if the applicant satisfies the Administrator that there were sufficient reasons for such a low turnover. The question, therefore, is whether the reasons given are sufficient. We find on an examination of this that the explanation that he was old in age would not be of much advantage to the appellant because with advancing age his capacity to do business might only further weaken. As for the financial difficulties encountered no details have been given as to what his difficulties were and the magnitude of his problems and the particulars of the efforts that he took to overcome these problems and the duration during which he faced these problems. There is also an apparent incongruity in the reason given, because it is stated that he had blood pressure and was bed-ridden, and at the same time, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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