(1) If, in respect of any inland ¹[mechanically propelled vessel], the registering authority, after making such in quiry as it thinks fit, is satisfied that the provisions of this Act or of any rules made thereunder have been complied with, it shall grant to the applicant therefor a certificate of registration comprising such particulars as may be prescribed on payment of the prescribed fee.
     (2) A registering authority may refuse to register an inland ¹[mechanically propelled vessel], if she is found to be mechanically defective, or if the applicant fails to furnish satisfactory evidence in support of any of the statements made in his application:
     Provided that where the registering authority refuses to register any inland ¹[mechanically propelled vessel], it shall furnish to the applicant a statement in writing containing the reasons for such refusal.