(a)no person who was, at the commencement of this Act, carrying on his trade, calling or occupation on any part or a cantonment shall be bound to apply for a licence for carrying on such trade or occupation in that part until he has received from the [Board] [Substituted by Act 24 of 1936, S.69, for "Cantonment Authority"] not less than three months' notice in writing of his obligation to do so, and if the [Board] [Substituted by Act 24 of 1936, S.69, for "Cantonment Authority"] refuses to grant him a licence, it shall pay compensation for any loss, incurred by reason of such refusal;