1988 (10) TMI 200 - AT - Indian Laws

Application for grant of a licence to a gold dealer already holding a licence at a different place

Summary

Issues:
1. Rejection of Gold Dealers Licence application based on location and existing license.
2. Interpretation of rules for issuing gold dealer's license.
3. Consideration of application and discrimination in granting licenses.

Analysis:

Issue 1: Rejection of Gold Dealers Licence application based on location and existing license
The appellant applied for a Gold Dealers Licence, but the department raised concerns about the necessity of a license for the location in question. The department argued that the place was remote and did not require a separate license due to the lack of demand for ornaments and the presence of only one certified goldsmith. The Additional Collector rejected the application, considering it as an application for an additional license rather than a fresh one, citing the proximity to the existing shop and lack of justification for another license. The Collector (Appeals) upheld this decision, stating that the location could not be considered an extension of business due to the distance from the existing shop.

Issue 2: Interpretation of rules for issuing gold dealer's license
The appellant contended that the authorities did not consider the application properly and referred to a Government Circular allowing traders to extend their business to new locations if there is scope for growth without affecting local traders. The appellant argued that there was discrimination in granting licenses, as another party from the same place was issued a license later. The appellant's representative highlighted the non-application of mind by the authorities in evaluating the application. The Tribunal noted that the rules did not mandate rejection based on holding a license in a different place and emphasized the need for a proper survey to determine the necessity of a license for the village in question. The Tribunal found the earlier decision to deny the license unjustified, especially since a license was later granted to another party from the same place.

Issue 3: Consideration of application and discrimination in granting licenses
The Tribunal reviewed the relevant legal provisions and observed that the authorities failed to consider all aspects of the application, leading to a lack of proper evaluation. It noted the inconsistency in the Additional Collector's decisions and agreed that there was a total non-application of mind by the Collector (Appeals). Referring to a previous decision, the Tribunal allowed the appeal, set aside the previous orders, and remanded the matter for a fresh consideration by the Additional Collector in line with the Tribunal's observations and legal requirements.

In conclusion, the Tribunal found that the rejection of the Gold Dealers Licence application was unjustified due to improper evaluation and non-application of relevant legal provisions. The matter was remanded for a fresh assessment to ensure compliance with the law and fair treatment of the appellant.