Succession-based licence transfer: prescribed application formalities treated as directory where strict compliance would defeat business continuity.

In succession-based transfer of a gold dealer's licence, the prescribed application form and fee requirement under the Gold (Control) Act and the Rules was treated as directory, not mandatory. The scheme was read as one intended to preserve continuity of the business for the heir or legatee, and not to defeat succession on technical non-compliance where the department already had the relevant information and the request was made promptly after death. On that practical and liberal construction, rejection for late formal application could not be sustained.

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Issues: Whether, in a case of transfer of a gold dealer's licence on succession, the requirement of filing the application in the prescribed form with the prescribed fee is mandatory or merely directory.

Analysis: Section 103 of the Gold (Control) Act, 1968 is designed to enable the heir or legatee of a licensed dealer to continue the business on succession, and the statutory scheme is concerned with preserving continuity of the business rather than defeating succession on technical grounds. Rule 5(2) of the Gold Control (Forms, Fees and Miscellaneous Matters) Rules, 1968 and Form G.S. 6 prescribe the form and fee requirements for applications, but the surrounding circumstances showed that the essential information was already in the department's possession and that the initial communication seeking transfer was made promptly after the dealer's death. On a reading of the provision as a whole, the legislative intent was held to favour a practical and liberal approach in succession cases.

Conclusion: The requirement of filing the application in the prescribed form is directory and not mandatory in cases of transfer on succession, and the rejection on the ground of late formal application could not stand.

Ratio Decidendi: Where a succession-based transfer of a licensed business is sought, statutory formalities prescribed for the application will be treated as directory if a strict insistence on form would defeat the legislative object of enabling the heir or legatee to continue the business.

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