Delhi Consumer Commission Directs App Developer to Refund ₹18.6 Lakhs for Non-Delivery of Mobile Apps Despite Full Payment
Pranav B Prem
The Delhi State Consumer Disputes Redressal Commission, presided over by Ms. Bimla Kumari, has held Mobulous Technologies Pvt. Ltd., a mobile application development company, liable for deficiency in service and unfair trade practice. The Commission found the company at fault for failing to deliver final versions of mobile applications despite receiving substantial payments from the complainant, Mr. Amit Bharana.
The complainant, Amit Bharana, had entered into a master agreement dated 03.12.2014 with Mobulous Technologies Pvt. Ltd. for the development of four mobile applications—‘Conncct’, ‘Bakkrr’, ‘Tikkrr’, and ‘Snakkoo’. He paid ₹18,60,000 by cheque by the end of January 2015, with the understanding that the final versions of the apps would be delivered within specific timelines. The agreement detailed seven time-bound milestones for delivery, but the company allegedly failed to meet even a single one of them.
The complainant asserted that time was of the essence, as he had already pre-scheduled soft launches, vendor engagements, and other related logistics. Despite numerous reminders through emails and calls, the company failed to complete the assignments. In January 2015, Mobulous Technologies allegedly cut off all communication. Frustrated by the delay and lack of response, the complainant reassigned the project to another developer and withdrew the mandate from the company. In response, Mobulous Technologies claimed via email that it was unilaterally withdrawing from the project, which the complainant alleged was part of a pre-planned and deliberate attempt to misappropriate his funds and pressure him for further payments.
The complainant further submitted that the company never had the infrastructure, technical team, or professionalism as initially represented, and that the entire engagement was misleading. A police complaint was filed, and a legal notice dated 07.05.2015 was also issued. After receiving no meaningful response, the complainant approached the Delhi State Commission seeking refund and compensation.
In response, Mobulous Technologies denied all allegations and claimed that delays were caused due to the complainant frequently changing project specifications and failing to make timely payments. The company also asserted that it suffered losses in goodwill and reputation due to the complainant’s conduct. However, the company failed to produce any evidence in support of its claims, despite being given several opportunities. Eventually, its right to file evidence and written arguments was closed.
The Commission observed that the company’s failure to lead evidence or rebut the complainant’s claims meant that the evidence remained unchallenged and was to be accepted as true. The Commission held that the complainant’s affidavit clearly established that the company did not deliver the applications within the agreed timelines, failed to respond to communications, and provided only incomplete and unusable code.
Citing the definition of “deficiency in service” under Section 2(1)(g) of the Consumer Protection Act, 1986, the Commission concluded that Mobulous Technologies Pvt. Ltd. was indeed guilty of failing to perform its contractual obligations.
Accordingly, the Commission allowed the complaint and ordered Mobulous Technologies Pvt. Ltd. to:
Refund ₹18,60,000 to the complainant with 6% interest from the date of payment until 18.06.2025.
If payment is not made by 18.08.2025, interest at 9% per annum will apply until the date of actual realization.
Pay ₹1,00,000 towards compensation for mental agony and harassment.
Pay ₹50,000 towards litigation costs.
The Commission directed that a copy of the order be provided to all parties free of cost and uploaded to its website for reference.
Appearance
For Complainant: Mr. Rakesh Kumar, Advocate
For Opposite Party No. 1: Mr. Rajeev Goswami, Advocate
Cause Title: Amit Bharana V. Mobulous Technologies Pvt. Ltd.
Case No: CC 891/2015
Coram: Hon’ble Ms. Bimla Kumari [Presiding Member]
