(1) On receipt of the application under section 8B, the Settlement Commission shall give an opportunity of hearing to the dealer making such application.

(2) After hearing the dealer concerned, the Settlement Commission shall refer the matter to the Commissioner for obtaining his views thereon.

(3) Where the Commissioner on the reference of the application under sub-section (2) for his views, finds that such application is not a fit case for settlement by the Settlement Commission, the Settlement Commission shall prima facie, reject such application based on such findings of the Commissioner.

(4) Where the Commissioner on the reference of the application under sub-section (2) for his views, agrees to the terms and conditions of the dealer, the Settlement Commission shall prepare a report, in writing, in respect of such terms and conditions of settlement.

(5) The Settlement Commission shall, after preparing the report under sub-section (4), forward it to the State Government for approval, and upon approval of such report by the State Government, the Settlement Commission shall settle the case, on payment by the dealer concerned of such sum as may be determined by it and in such manner as may be prescribed.

(6) The Settlement Commission shall settle the case within a period of three months from the date of receipt of the application and, in case the dealer and the Commissioner cannot agree to the terms and conditions of settlement, the application shall stand rejected at the expiry of the period of such three months:

Provided that in case any application cannot be disposed of within a period of three months from the date of receipt of such application for any reason other than disagreement of terms and conditions of settlement between the dealer and the Commissioner, the Commission shall state in its order the reasons for such delay.

(7) The provision of section 86 shall apply, mutatis mutandis, to the Settlement Commission.