Admitted delay in commissioning contracted capacity under a power purchase agreement automatically attracts contractually stipulated liquidated damages

Where the execution timelines in a Power Purchase Agreement are fixed and the developer explicitly admits to a delay in commissioning full power capacity, the breach of contract is conclusively established. Such failure directly activates the liquidated damages mechanisms provided in the contract to address default in performance timelines. The contractually agreed terms govern the rights and liabilities of the parties, and concepts of equity cannot be imported to override clear contractual provisions defining specific monetary penalties and encashment mechanisms for varying periods of operational delay. (M/s Saisudhir Energy Ltd. v. M/s NTPC Vidyut Vyapar Nigam Ltd. | 2026 INSC 103)