Client asking for refund of money
Nayan Kumar
(Querist) 03 January 2015
This query is : Resolved
Hello,
We are a web design company and were doing one project for which we have recd 50% advance amounting to Rs.80,000. Somehow project got stretched and client is now asking for refund of whole money or he is saying he will take legal action. however on their request we did give the entire source code of work done by us as they wanted to move with new vendor but now they are saying that they are not going to use our code.
We did sign contract with them and below are some of the important points
If this Agreement is terminated by Customer because of Web Designer's default of his obligations hereunder, Customer may, after thirty (30) days written notice to Web Designer and a reasonable opportunity to cure:
(a) require Web Designer to immediately deliver to Customer all Work Product developed by Web Designer under this Agreement and pay Web Designer all amounts owed for the work performed under this Agreement and accepted by Customer, whereupon Customer shall have complete right, title and interest in such work and all rights, permissions and licenses granted to Customer by Web Designer under this Agreement shall continue, in perpetuity as royalty‑free and fully paid rights; or
(b) Pursue all legal and equitable remedies against Web Designer.
Only issue could be point (b).
However they did tell us over a phone if we can do it in one month or not but did not send in writing for 30 days period to cure it. I did tell him that we can do the development part but design if you stretch it like this I cant guarantee.
So here are our plus points in nut shell
1.We have delivered around 50% work as per our estimates (Backend was almost done)
2.We have handed over the source code to them as per their request
3.Now he is saying they are not going to use this code but you cant come to know about it unless their new vendor completes the site and they share actual backend with us which is less likely. they might just change front end design, still most of the hard work is already done by us for the front end as well.
4.it can be proved as our fault if even new vendor can complete it in 40 days as client keeps changing design requirement.
5.We gave them option to mutually settle this by giving SEO services of worth Rs.90,000 in return which they denied saying they have hired another agency for that.
6.as per the contract -
All The advance amount is non-refundable
7. we can also debate that design is very subjective and if someone keeps changing design every now and again it is not going to get completed in time. At the same time we can also say that if design was not as per what they want we can not ask our designers to refund us their salaries.
Points which can go against us
Page 7 - Duration: 8 Weeks (5 Working days per week)
This dragged in for around 7 months partly because of our fault partly because of their fault.
We are ready to fight this out legally if it goes to consumer court and we have strong evidences to prove this in our favor but if they file criminal case then I can be in trouble and thats what I am affraid about.
What should be done in such a scenario, I am not willing to refund Rs.80,000 for sure as we have invested lot of time and efforts in this.
What are other options?
What are the chances of they filling criminal or civil case?
Sorry for the long post.
Thanks in advance.
ROHIT SHARMA
(Expert) 03 January 2015
1. The chances of filing criminal case is very remote since this is a civil matter involving contract act.
2. You can face the consumer court if they approach them.
3. As per agreement advance amount is not refundable. Stick to this terms.
Dr J C Vashista
(Expert) 04 January 2015
1. We donot entertain anonymous author.
2. It is a commercial query.
3. Too long a story and not a query for providing charitable help to needy litigant.
4. Contact, consult and engage a local lawyer.
ajay sethi
(Expert) 04 January 2015
commercial query /anonymous query
ABDUL RAZIQUE
(Expert) 04 January 2015
Anonymous and a query--- you hide your identity and we reserve answer.
Biswanath Roy
(Expert) 06 January 2015
You may mail me scanned copies of Agreement and correspondences related to for opinion.
My E-mail is,-bnroy.advocate@gmail.com
T. Kalaiselvan, Advocate
(Expert) 06 January 2015
The experts have taken stand to not to entertain queries posted on the anonymous names.
