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3.—(1) This paragraph applies to an existing licence if—
(a)a traffic commissioner has before the appointed day curtailed the period of validity of the licence under section 17(2) of the 1981 Act; and
(b)the expiry date of the licence is the appointed day or any day thereafter.
(2) Subject to sub-paragraphs (3) and (4) below, an existing licence to which this paragraph applies shall, unless previously revoked or otherwise terminated under any provision of the 1981 Act or any other statutory provision, terminate on the expiry date.
(3) If, immediately before an existing licence is due to expire by virtue of sub-paragraph (2) above, proceedings are pending before the traffic commissioner on an application by the holder of that licence for the grant to him of a new licence in substitution for it, the existing licence shall, subject to its revocation or other termination under any provision of the 1981 Act or any other statutory provision, continue in force until—
(a)the application, and
(b)any appeal under section 50 of the 1981 Act arising out of the application,
are disposed of.
(4) Section 15(4) of the 1981 Act as it was in force immediately before the appointed day shall, notwithstanding anything in the 1994 Act, continue to have effect in relation to an existing licence to which this paragraph applies.
(5) For the purposes of this paragraph, the expiry date of a licence that has, before the appointed day, been curtailed under subsection (2) of section 17 of the 1981 Act is the date on which it would have expired by virtue of the curtailment had the 1994 Act not been passed and no application were made for a licence in substitution for it.
(6) Section 15(2) of the 1981 Act shall, on and after the appointed day, have effect subject to this paragraph.