(1) The chief of public entity may, as required, make inspection as to whether the supplier has supplied ration of the quality specified in the contract or not, and if the ration supplied is not found to be of the quality specified in the contract, he or she may initiate action to terminate the contract.
(2) Where the contract is terminated pursuant to sub-rule (1) or for any other reason, the supplier shall pay the public entity the outstanding advance money, if any, due to the public entity, together with an annual interest at the rate of ten percent thereon effective from the date on which the advance was taken. If the supplier does not pay such an amount within thirty days of such termination of the contract, that amount shall be recovered from him or her as governmental dues.