Public utility projects involving green energy initiatives carry an inherent public interest burden that eliminates the strict necessity of proving actual monetary loss for enforcing liquidated damages clauses

Under Section 74 of the Indian Contract Act, 1872, when a contract executed for a public utility purpose or under a government mission like the Jawaharlal Nehru National Solar Mission (JNNSM) is breached due to delay, the failure to meet timelines itself constitutes legal injury and loss to the public interest and environment. In infrastructure and green energy contracts designed for public benefit, proving exact financial loss is practically impossible, making pre-estimated contractual liquidated damages enforceable without concrete proof of monetary loss. The party committing the delay bears the heavy burden to prove that no loss was caused, which cannot be discharged merely by showing that the employer made no direct capital investments in the project. (M/s Saisudhir Energy Ltd. v. M/s NTPC Vidyut Vyapar Nigam Ltd. | 2026 INSC 103)