(1) If the Registrar is satisfied that-
(a) the application complies with the provisions of this Act and the rules;
(b) the objects of the proposed society are in accordance with section 4;
(c) the proposed by-laws are not contrary to the provisions of this Act and the rules;
(d) the proposed society complies with the requirements of sound business and has reasonable chances of working successfully; and
(e) the area of operations of the proposed society does not overlap the area of operations of another society of the same class save as permitted by the Registrar;
he may within three months from the date of receipt of the application register the society and its by-laws:
Provided that if the Registrar is unable to dispose of the application within the aforesaid period, he shall make a report to the Government stating therein the reason for his inability to do so and the Government may allow him such further time as may be considered necessary to dispose of such application.
(2) If the Registrar refuses to register a society and its by-laws, he shall communicate the order of refusal with the reasons for the refusal to any person who has signed the application for the registration of the society and who has been nominated in this behalf by the persons who have signed that application.