Whether the government can claim liquidated damages from other party while extending time for completion of project contrary to terms of contract?

[Educator]

5.2 In the communication granting extension of time with levyof penalty, penalty is levied by the State Governmentinvoking Clause 3.5.5(v) of the OPWD Code. However, it isrequired to be noted that Clause 3.5.5(v) of the OPWDCode shall be applicable in a case where the contract isterminated. It permits the appropriate authority/State toterminate the contract with penalty when the progress ofwork