Is notice period applicable in Internship?

I am doing 5 months internship with a startup in Pune. I was supposed to get project in the company as discussed during interview. But once I joined company, there was no such project and things were unorganised. Even I was not on-boarded formally and it has been about 1 months. Even I was not given training. So, I applied for internship in other company and got selected. I informed this to the company. They say they are waiving 1 months notice period but won't pay stipend. Just wanted to know ' Is 1 months notice period applicable in internship of 5 months?' They have this clause in Offer Letter " Under normal circumstances either the company or you may terminate this association by providing a notice of 30 days without assigning any reason. However, the company may terminate this agreement forthwith under situations of in-disciplinary behaviours." What does this 'normal circumstances' stands for? Also, I have never signed any bond with them. After little negotiation they agreed to pay partially and asked my expectations. Kindly suggest me proper amount I should ask if my per months stipend is 20,000?