In Brief
A solar power developer (Acme) entered into a Power Purchase Agreement (PPA) with a state utility (GUVNL) to supply 15 MW of power from 29th May 2011. When it failed to meet this deadline, a dispute arose over how long liquidated damages should run. Lower regulatory authorities held damages were payable only until 30th September 2011, but the Supreme Court disagreed. Based on mandatory statutory certificates showing the plant was ready for operation on 31st December 2011 (awaiting only the utility's transmission lines), the Court held the developer liable to pay damages from 29th May to 31st December 2011, modifying the lower orders accordingly."
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