(1) The prescribed authority may refuse registration of a hotel under this Act on any of the followings grounds, namely :—
(a) if the hotel-keeper is convicted of any offence under [Chapters XIII and XVII of the Indian Penal Code (45 of 1860)] or under any of the provisions of this Act or of any offence punishable under any law providing for the prevention of hoarding, smuggling or profiteering or adulteration of food or drugs or corruption and [six months] have not elapsed since the termination of the sentence imposed upon him ;
(b) if the hotel-keeper has been declared an insolvent by a Court of competent jurisdiction and has not been discharged ;
(c) if the name of the hotel-keeper has been removed from the register under clause (b) or clause (c) of section 12 and six months have not elapsed since the date of removal ;
(d) if the hotel-keeper does not hold a licence or certificate required to be held by him under any law for the time being in force ;
(e) if in the opinion of the prescribed authority there is any sufficient ground, to be recorded in writing, for refusing registration.
(2) No application for registration shall be refused unless the person applying for registration has been afforded a reasonable opportunity of being heard.