(1) When an application under Sec. 5 of Sec. 6 is prescribed to the Collector in the prescribed manner, he may, after making such inquiry as he may think necessary, either disallow the application or grant the requisite permission unconditionally or with such conditions as to security or otherwise as he may consider reasonable in the circumstances of each case.
(2) The order of the Collector passed under sub-section (1) shall be communicated in writing to the applicant and if the latter does not receive such communication within four weeks in the case of an application under Section 5 or within three months in case of an application under Section 6, calculated from the date on which such application was received in the office of the Collector, the applicant shall be deemed to have obtained the permission required by Section 5 or Section 6 as the case may be.