Alternative licensing conditions under gold control rules barred refusal of renewal based on low turnover once wholesale dealer status was shown.

Rule 3(ee) of the Gold Control (Licensing of Dealers) Rules, 1969 set out alternative eligibility conditions for renewal of a gold dealer licence. An applicant who qualified as a wholesale dealer in standard gold bars did not also have to satisfy the turnover condition relating to dealings with persons other than licensed dealers. Refusal of renewal on the ground of low turnover was therefore based on an incorrect construction of the rule and was unsustainable; the licence was directed to be renewed.

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Issues: Whether renewal of the gold dealer licence could be refused on the ground of low turnover when the applicant satisfied the alternative condition of being a wholesale dealer in standard gold bars under the relevant licensing rule.

Analysis: Rule 3(ee) of the Gold Control (Licensing of Dealers) Rules, 1969 prescribed alternative conditions. An applicant needed to satisfy either the condition of being a wholesale dealer in standard gold bars, articles or ornaments, or the condition relating to turnover with persons other than licensed dealers not being too low. Once the applicant was found to be a wholesale dealer in standard gold bars, the turnover condition ceased to apply. The refusal of renewal was therefore based on an incorrect construction of the rule.

Conclusion: The refusal of renewal was unsustainable and the licence was directed to be renewed.

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