Manner of furnishing security under section 26 or rule 120.
198. (1) When it appears to the Commissioner, or the authority to whom power under -section 26 has been delegated, to require a dealer, casual dealer, or a person, to furnish security or additional security under clause (a), or clause (b), or clause (c) of rule 195, or rule 105, a fresh or further security under rule 197, he shall serve a notice specifying the amount for which the security is proposed to be furnished by the dealer, the casual dealer or the person, as the case may be, and directing him to appear on the date specified in the notice to prefer objection, if any, to the proposal for the said security, and the date to be so specified shall not be less than twenty one days from the date of service of such notice.
(2) After considering the cause, if any, shown by the dealer, casual dealer, or person, in pursuance of the notice referred to in sub-rule (1), the authority referred to therein may determine, by an order in writing, the reasonable amount for which security is required to be furnished by such dealer, casual dealer, or person.
(3) If any security is to be furnished by a dealer, casual dealer, or a person under subrule (2), the authority shall serve a copy of the order upon him specifying the date, not less than thirty days from the date of service of the order, on or before which the security shall be furnished.
(4) A security required to be furnished under sub-rule (3) shall be furnished-
(a) in cash;or
(b) in such post office certificates, or Government Promissory notes, or Loan bonds as may be in force at the time of furnishing such security, if the authority demanding the security so permits in the manner and for a period specified in the order referred to in the said sub-rule; or
(c) in the form of a Guarantee from a Scheduled bank agreeing to pay to the State Government on demand, the amount of security fixed by the Commissioner or the authority referred to in sub-rule (1).
(5) No order shall be passed under this section without giving the dealer, casual dealer or person an opportunity of being heard.
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