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Software aevelopment agency not giving refund


09-Jun-2025 (In Recovery Law)
Hello. I have given my company's website project to one of the agency in pune they have given me quotation of 1.80 lakh and time period proposed for 6 months which is notarized agreemented, now suddenly 5 months are passed away and now there are asking another 5 months for the development. I already given 90k to them as a advance, now they are asking more money of 2 lakhs and if I'll not agree for that money they'll stop the project and don't give me my 90k refund.
Answers (2)

Answer #1
577 votes
From what you’ve shared, it appears that you entered into an agreement with a Pune-based agency for developing your company’s website for ₹1.80 lakhs with a 6-month deadline. You've already paid ₹90,000 as advance. Now, after 5 months, the agency is not only seeking 5 more months but is also demanding an additional ₹2 lakhs. They’re threatening to stop work and not refund your advance if you don’t agree. This conduct raises serious legal issues—namely, breach of contract, unfair trade practices, and possibly criminal breach of trust. You may be entitled to recover your ₹90,000, seek damages, or even pursue a consumer complaint or police action depending on how the situation evolves. I’d strongly advise you to immediately to issue a legal notice. Feel free to reach out.
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Answer #2
593 votes
Well, since this is a notarized agreement, you are on stronger side. You can file a case of Breach of Promise under the Indian Contract Act, 1872. You can seek Compensation under Sec 73 of the Indian Contract Act, 1872 along with refund of fees!
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