A licence may be cancelled or suspended either wholly or in part by the authority which issued it if the licensee or any person acting on his behalf has committed a breach of violation of or failed to comply with any of the provisions of the rules or terms and conditions of the licence. Before cancelling or suspending a licence the licensee shall be given an opportunity to show-cause within a reasonable time not ordinarily exceeding fourteen days, against the action proposed to be taken and any representation or explanation made by the licensee shall be duly taken into account by such authority before passing final orders. The licensing authority may cancel or suspend the licence for such period as is deemed fit either wholly or in part by an order in writing, stating the reasons, to be communicated to the licensee.
When a licence is suspended or cancelled during its currency or is not renewed after its expiry, the holder of the licence is prohibited from selling or using any of the stocks of molasses held by him under the licence at the time of such suspension, cancellation or expiry as the case may be. The stocks shall not be disposed of except in accordance with the orders of the licensing authority and the licensee shall not be entitled to claim any compensation on account of such cancellation, suspension or non-renewal of the licence.