Undefined licensing terms must be read with the parent statute; gold ornament manufacturing for dealers supported licence renewal.

An undefined expression in delegated licensing rules must be construed in the context of the parent statute under which the rules are made. Applying that approach, a gold dealer manufacturing ornaments for other dealers could fall within the meaning of a wholesale dealer for renewal of a licence under Rule 3(ee) of the Gold Control (Licensing of Dealers) Rules, 1969. The dealer's manufacturing activity for other licensed dealers was accepted, and the alternative turnover condition was also met because dealings with persons other than licensed dealers were nil for sufficient reasons. Licence renewal was therefore upheld and the department's challenge failed.

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Issues: Whether, for renewal of a gold dealer's licence under Rule 3(ee) of the Gold Control (Licensing of Dealers) Rules, 1969, manufacture of gold ornaments for other dealers could be treated as turnover and whether the respondent could be regarded as a wholesale dealer.

Analysis: The expression "wholesale dealer" was not defined in the Rules, while the parent Act defined "dealer" in Section 2(h). Since the Rules were framed under Section 114 read with Section 27(6) of the Gold Control Act, an undefined expression in the Rules had to be construed in the context of the parent Act. On that construction, a person manufacturing gold ornaments for other dealers could fall within the expression "wholesale dealer". The respondent's activity of manufacturing ornaments for other dealers was not rebutted and supported renewal of the licence. The alternative requirement in Rule 3(ee) was also satisfied because the respondent's turnover with persons other than licensed dealers was nil for sufficient reasons.

Conclusion: The licence renewal was rightly allowed and the department's appeal failed.

Ratio Decidendi: Where a rule uses an undefined expression, it must ordinarily be interpreted in the light of the parent statute under which the rule is framed, and the licensing condition is satisfied if the applicant's dealings with other licensed dealers fall within the statutory notion relevant to the rule.

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