52. Manner of refund of security

52. Manner of refund of security

(1) If the certificate of registration granted under section 19 is cancelled or if the penalty imposed under clause(b) of sub-section(4) of section 56 is either deposited or stayed or quashed by the competent authority, the dealer or the person whose registration has been cancelled or upon whom the penalty was imposed, as the case may be, shall apply to the concerned Circle Incharge for refund of the security furnished.

(2) If the concerned Circle Incharge is satisfied about the bona fide of the application under sub-rule (1) he shall refund the amount of security furnished if such security is not required for the purposes for which it was furnished:

Provided that if the applicant has any other unpaid liability under the earlier law or the Act the security shall first be applied towards adjustment of such liability and only the amount remaining after such adjustment, if any, shall be refunded.