Section 13(a) in The M.P. Municipal Accounts Rules, 1971
(a)In all contracts entered into on behalf of Municipal Council under which sums of money are payable by contractors, adequate security shall, whenever possible, be taken for sums being paid as they fall due. Where the circumstances are such that security cannot conveniently be furnished, the contractor shall be required to pay the sums due on the contract quarterly in advance and the instalment on account of each quarter shall be paid at least a month before the beginning of that quarter for which the advance payment is required. In default, the contract shall at once be cancelled and new arrangements shall be made, so that, as far as possible, Municipal Councils may be protected from loss.
