Owner to furnish security

(1) Where an owner makes a default in the payment of tax or penalty under this Act for a continuous period of two months or more, the licensing officer, for the proper realization of the tax or penalty levied under this Act, shall, after giving an opportunity of being heard, require the owner of the motor vehicle to deposit as security, a sum equal to the amount of tax and/or penalty and interest due from him, in such manner, as may be prescribed. (2) Where the security furnished by an owner of a motor vehicle under sub-section (1) is in the form of surety bond and the surety becomes insolvent or is otherwise incapacitated or dies or withdraws, such owner shall within fifteen days of the occurrence of any of the aforesaid events, inform the licensing officer and shall within thirty days of such occurrence, furnish a fresh surety bond. (3) The licensing officer may, by an order in writing, for good and sufficient cause and after giving the owner a reasonable opportunity of being heard, forfeit the whole or any part of the security furnished by such owner for realizing any amount of tax or penalty payable by him under this Act. (4) Where by reason of an order under sub-section (3), the security furnished by such owner is rendered insufficient, he shall make up the deficiency in such manner and within such time, as may be prescribed. (5) The licensing officer may, on an application by such owner, release the security furnished by him or any part thereof, if the same is no longer required to be retained for the purposes of this Act.