(1) On receipt of the application from the contractor, and as soon as possible thereafter the licensing officer shall investigate or cause investigation to be made to satisfy himself about the correctness of the facts and particulars finished in such application and the eligibility of the applicant for a licence.
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(2) (i) Where the licensing officer is in the opinion that the license should not be granted, he shall, after affording reasonable opportunity to the applicant to be heard, make an order rejecting the application.
(ii) The order shall record the reason for the refusal and shall be communicated to the applicant.
10. Security –
(1) Where the licensing officer is satisfied in accordance with the procedure laid down in the provision to sub section (2) of section 8, that any person who has applied for or who has been issued a licence should furnish security for the due performance of the condition of the licence, he shall prepare an estimate of the amount needed to provide for recruitment or employment of migrant workmen on the basis of the number of persons proposed to be employed, their period of employment, rates of wages payable to them, places of employment, facilities which shall be afforded to the workmen and other relevant factors as specified in sub – section (3) of the said section and determine the amount of security to be furnished by such person, which shall not exceed forty percent of the amount estimated by him:
Provided that the amount of security to be furnished by any such person shall not be less than twenty times of the amount payable by him by way of fee for the licence.
(2) Where the applicant for the licence was holding a licence in regard to another work and that licence had expired the Licensing officer If he is of the opinion, that any amount out to the security, if any deposited in respect of that license is to be refunded to the applicant under rule 17 he may on an applicant made for that purpose in Form VII by the applicant adjust the amount so to be refunded towards the security, if any, required to be deposited in respect of the application for the new licence and the applicant need deposit in such a case, only the balance amount, if any, after making such adjustment.