(1) Where a person makes an application for licence under section 5, the authority prescribed in the rules made under that section for grant of licences (hereinafter referred to in this Act as the licensing authority), after making such inquiry, if any, as it may consider necessary, shall, subject to the other provisions of this Act, by order in writing cither grant the licence or refuse to grant the same.
(2) The licensing authority shall grant a licence--
(a) where it is required for the purpose of manufacture of explosives if the licensing authority is satisfied that the person by whom licence is required--
(i) possesses technical know-how and experience in the manufacture of explosives; or
(ii) has in his employment or undertakes to employ a person or persons possessing such echnical know-how and experience; or
(b) where it is required for any other purpose, if the licensing authority is satisfied that the person by whom licence is required has a good reason for obtaining the same.