Gold licence renewal must consider sufficient reasons for low turnover before refusal under the licensing rules.

Renewal of a gold dealer licence could not be refused solely for low turnover where the governing rule allowed renewal on proof of sufficient reasons. The applicant's explanation that illness and disability affected business was a relevant circumstance under Explanation (I) to Rule 3(ee) of the Gold Control (Licensing of Dealers) Rules, 1969, and the authorities were required to consider and decide that explanation before rejecting renewal. Because the appellate and revisional orders did not properly address this statutory proviso or record findings on it, the refusal could not stand and the matter had to be reconsidered afresh.

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Issues: Whether refusal of renewal of a gold dealer licence on the ground of low turnover was sustainable when the applicant's explanation of illness and other circumstances had not been considered under the proviso in Explanation (I) to Rule 3(ee) of the Gold Control (Licensing of Dealers) Rules, 1969.

Analysis: Explanation (I) to Rule 3(ee) deems turnover to be too low when it is on the average not more than fifty grammes per month, but it also permits grant of licence if the applicant satisfies the Administrator that there are sufficient reasons for an average monthly turnover below that level. The applicant's plea that illness and disability affected the business was a relevant circumstance going to the existence of sufficient reasons. The appellate and revisional authorities did not properly address this explanation or record findings on it, showing that the statutory requirement had not been considered in the manner required.

Conclusion: The refusal orders could not stand. The matter was required to be reconsidered afresh by the appellate authority after examining the applicant's explanation under Explanation (I) to Rule 3(ee).

Ratio Decidendi: Where the governing rule permits renewal despite low turnover on proof of sufficient reasons, the authority must consider and decide the applicant's explanation on that question before refusing the licence.

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