(1) Every application for a Pawn Broker’s licence shall be in writing and shall be made to the licensing authority in such manner and accompanied by such licence fee as may be prescribed.
(2) Every licence shall be granted in such form and subject to such conditions as may be prescribed.
(3) The Licensing Authority may by order in writing refuse to grant a licence, if such authority is satisfied,-
(a) that the applicant has not complied with the provisions of this Act or the rules made thereunder in respect of an application for the grant of licence; or
(b) that the applicant has made wilful default in complying with or knowingly acted in contravention of any requirement of this Act; or
(c) that the applicant has,-
(i) knowingly participated in or connived at any fraud or dishonesty in the conduct of or in connection with the business of Pawn Broking; or
(ii) is found guilty of an offence punishable under this Act or any other law for the time being in force in respect of or in connection with the business of Pawn Broking; or
(d) that the application is made within six months of the cancellation of the previous licence of the applicant.
(4) Every order of the Licensing Authority under subsection (3) shall be communicated to the applicant in such manner as may be prescribed.
(5) The Licensing Authority may, if it is satisfied that an applicant coming under the purview of the proviso to subsection (1) of section 3 could not apply for a licence under this Act, within the period referred to therein for reasons beyond his control, condone the delay upto a maximum period of ninety days subject to payment of a penalty equal to the prescribed licence fee.
(6) Every licence granted under this Act shall, subject to the provisions of sub-section (8), be for a period of three years.
(7) A licence granted under sub-section (2) may be renewed on an application which shall be made atleast two months before the expiry of the period of licence and the provisions of sub-sections (1) to (6) shall apply in relation to the renewal of licence as they apply in relation to the grant of a licence.
(8) If orders refusing to renew a licence are not communicated to a Pawn Broker by the Licensing Authority before the expiry of his current licence, the Pawn Broker shall, notwithstanding such expiry, be deemed to have a valid licence till the orders are received by him on his application for renewal.
(9) Nothing in this section shall be deemed to disentitle a Pawn Broker whose licence has expired or has not been renewed from taking steps to recover any loan advanced during the period when the licence was in force.