(1) No person shall use or permit to be used any premises for any of the following purposes without or otherwise than in conformity with the terms of a licence granted by the Municipal Commissioner or Chief Officer in this behalf, namely:--

(a) any of the purposes specified in Part I of Schedule XIII;

(b) any purpose which is, in the opinion of the Municipal Commissioner or Chief Officer dangerous to life, health or property or likely to cause a nuisance;

(c) keeping horses, cattle or other quadruped animals or birds for transportation, sale or hire or for sale of the produce thereof; or

(d) storing any of the articles specified in Part II of Schedule XIII except for domestic use of any of those articles:

Provided that the municipal council may declare that premises in which the aggregate quantity of articles stored for sale does not exceed such quantity as may be prescribed by bye-laws in respect of any such articles shall be exempted from the operation of clause (d).

(2) The Government may by notification direct that no premises within adistance of two miles of the limits of a¹[municipal area] shall be used for any one or more of the purposes mentioned in Part I or II of Schedule XIII without a licence obtained from the Municipal Commissioner or Chief Officer of the¹[municipal area] concerned and except in accordance with the conditions specified in such licence and thereupon the provisions of this Act and the rules and bye-laws thereunder applicable to any premises within the¹[municipal area] referred to sub-section (1) shall be applicable to the premises outside the¹[municipal area]:

Provided that no such notification shall take effect until the expiry of thirty days from the date of its publication in the official Gazette.

(3) In prescribing the terms of a licence granted under this section forthe use of premises as mills or iron yards or for similar purposes the Municipal Commissioner or Chief Officer may, when he thinks fit, require the licensee to provide a space or passage within the premises for vehicles for loading and unloading purposes.

(4) The municipal council shall fix a scale of fees to be paid in respect ofpremises licensed under sub-section (1) or sub-section (2):

Provided that no such fee shall exceed five hundred rupees per annum.

(5) Where a licence is granted under this section for the use of any placeoutside the limits of the¹[municipal area], the municipal council shall pay to the local authority within the limits of which such place is situated, such proportion of the fee received by the municipal council for the grant or renewal of such licence as the Government may, by general or special order, determine.

(6) Whoever uses any premises in contravention of sub-section (1) or (2) or (3) or of any bye-law made under sub-clause (iv) of clause (b) of subsection (1) of section 324 shall be punished with fine which may extend to two hundred rupees, and with further fine which may extend to forty rupees for every day on which such contravention is continued after the date of first conviction.

(7) Upon a conviction being obtained under this section in respect of any premises used for any purpose referred to in clause (a) or (b) of sub-section (1), the magistrate shall on the application of the municipal council, but not otherwise, order such premises to be closed, and thereupon appoint persons or take other steps to prevent such premises being used for any purpose referred to in cause (a) or (b) of sub-section (1).

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1. Substituted by Act 36 of 1994 w.e.f. 1.6.1994.