If the Director terminates the hiring under section 25 and the hirer does not purchase the machinery under section 26 or if the hirer returns the machinery to the State Government under section 27, the hirer shall not entitled to the refund of the percentage of cost deposited by him under section 22, or unless the State Government otherwise directs, to the refund or remission of any payment made by or any amount due from during the hiring and he shall be liable to pay such amount as determined by the Director in respect of any loss or damage, other than by reasonable wear and tear, that may have been caused to the machinery during the hiring.