(1)[Notwithstanding any thing contained in this Act, where a licence has been granted under Section 5, it may be cancelled or revoked in the public interest -(i)by the State Government, where the licence was granted by the Government or by the licensing authority;(ii)by the licensing authority, where the licence was granted by such authority.(1-A) In particular and without prejudice to the generality of the power conferred by sub-section (1), a licence may be cancelled or revoked under that sub-section on any of the following grounds, namely-(a)that the licence was obtained through fraud or misrepresentation; or(b)that the licensing authority or the State Government while considering the application or appeal, as the case may be, under Section 5 was under a mistake as to a matter essential to the question of grant or refusal of licence ; or(c)that the licence has been guilty of breach of the provisions of this Act or the rules made thereunder or of any conditions or restrictions contained in the licence, or of any direction issued under sub-section (4) of Section 5; or(d)that on account of any charge occurring in the situation of the place licensed, the continuance of the licence is considered prejudicial to decency or morality ; or(e)that the licence has been convicted of any offence under Section 8 of this Act or Section 7 of Cinematograph Act, 1952].(2)Where the State Government or the licensing authority is of the opinion that a licence granted under Section 5 should be, cancelled or revoked, it shall, as soon as may be, communicate to the licence the grounds on which the action proposed to be taken and shall afford him a reasonable opportunity of making a representation against it :[Provided that where the State Government or the licensing authority, as the case may be, is further of the opinion that the object of the action proposed to be taken would be defeated by delay, it may, while or after communicating to the licensee, as aforesaid, the grounds on which the action is proposed to be taken would be defeated by delay, it may, while or after communicating to the licensee, as aforesaid, the grounds on which the action is proposed, pass an interim order suspending the licence in the meantime].(3)If after considering the representation, the State Government or the licensing authority, as the case may be, is satisfied that licence should be cancelled or revoked, it may make an order accordingly and shall communicate it to the licensee stating in writing the grounds therefor.(4)where the order suspending a licence under the proviso to sub-section (2) or canceling or revoking it under sub-section (3) has been passed by a licensing authority, any person aggrieved by the order may, within thirty days of the communication of such order to him, appeal to the State Government which may pass such order as it may thinks fit.(5)The order of the State Government shall be final.
