(1) If a contractor does not perform according to his commitment or abandons or terminates the contract before the contract period is paid, the loss caused to the Government of Nepal and the balance to be taken by the Government of Nepal from the contractor and ten percent interest thereof shall be If there is no recovery from the deposit kept by the contractor, it will be recovered from him and his guarantor according to the law.

However, if the contractor is unable to perform the contract due to circumstances beyond his control, the government of Nepal may discount as many points as it deems appropriate from the points to be recovered accordingly. .

(2) If the Nepal Government violates any condition of the lease or customs contract given to the contractor after settling the contract, or if the contract is terminated before the contract period is paid, the Nepal Government shall bear the damage caused to the contractor.