Default in compliance with order under section 9

(1)

1. (i) If the borrower or grantee fails without reasonable cause to comply with any order under section 9, or
2. (ii) If the Controlling Authority, after inspection provided for in section 9, or otherwise, is satisfied that the money lent or granted, as the case may be, is not being applied to the purpose or purposes for which it was lent or granted or that the conditions on which it was granted are not being duly fulfilled, the Controlling Authority may declare notwithstanding anything contained in the bond executed by the borrower or grantee,

1. (a) in the case of a loan that it is immediately recoverable, and
2. (b) in the case of a grant that it shall be treated as a loan; and shall give notice of such declaration to the borrower or grantee, as the case may be. [(2) The Controlling Authority may within six months of having passed orders under sub-section

1. (1) withdraw these orders and pass such further order in relation thereto if he is satisfied that the grounds on which these orders had been passed no longer exist, or, if the borrower or the grantee, as the case may be, has given a guarantee to the satisfaction of the Controlling Authority that there will not be any repetition of any of the grounds which had necessitated the orders under sub-section (1).]