(1) On receipt of an application under section 3 or section 5, as the case may be, and after such enquiry as may be deemed necessary, the competent authority may, within a period of 90 days from the date of receipt of the application, by order, grant the licence subject to such conditions as may be prescribed or refuse to grant the licence, and where the licence is refused, the reasons for such refusal shall be recorded in writing.
(2) Every order under sub-section (1) shall be communicated to the applicant in writing by registered post acknowledgement due within 30 days of such order:
Provided that where no such communication is received within a period of 120 days from the date of receipt of the application, the licence shall be deemed to have been granted, and the competent authority shall accordingly issue the licence within a period of 30 days:
Provided further that if the competent authority fails to issue the license, in terms of the preceding proviso within a period of 30 days, the applicant may apply to the Appellate Authority for issue of such licence, and the appellate authority may after making necessary inquiries pass necessary orders for issue of such licence.
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