Owner to furnish security

(1) The licensing officer, for the proper realisation of tax levied under this Act, shall after giving an opportunity of being heard, require any owner of the transport vehicle to deposit as security an amount not exceeding Rs. 50,000 in the prescribed manner where such an owner makes a default in the payment of tax under this Act for a continuous period of two months or more. (2) Where the security furnished by an owner of a transport vehicle under sub-section (1) is in the form of a 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 realising any amount of tax, interest 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.