Delhi State Commission Holds Mobile App Developer Liable For Failure To Create And Deliver Mobile Application Projects Despite Receiving Hefty Payments

Brief facts:

The complainant entered into a master agreement with a Mobile Application developer company named- Mobulous Technologies Pvt. Ltd. ('Company') for creation of mobile apps for the complainant. A substantial amount of Rs. 18,60,000 was paid by the complainant and repeated assurances were given by the company to deliver the final version of the applications within the stipulated timelines. However, the company failed to adhere to the timelines and did not deliver even a single project in time which caused huge loss to the complainant.

The complainant time and again reminded the company to complete the assignment since he had pre-scheduled the soft launch of the applications, engagement with vendors, etc. Further, as per the complainant, the company withdrew all projects/assignments and tried to extort more money from him. A police complaint was then lodged by the complainant and a legal notice was also issued. On not receiving any satisfactory reply, the complainant filed a complaint before the Delhi State Commission praying for appropriate compensation.

Submissions of the complainant:

The complainant submitted that the company never had any experts or professionals and the infrastructure to execute the assignments as represented by them at the time of meeting. It was submitted that the company failed to deliver even a single project on time despite taking all payments.

Submissions of the company:

The company submitted that the complainant failed to make timely payments and kept on changing the specifications for the project at each meeting which caused a lot of extra work. All allegations made in the complaint were denied by the company and it was submitted that the complainant has caused loss of goodwill and reputation of the company. It further prayed for dismissal of the complaint.

However, no records were filed by the company to support its stance.

Observations of the commission:

The bench observed that despite several opportunities, the company failed to produce any documents to support its arguments due to which the evidence of the complainant remained unchallenged. Since, the company failed to place on record any material to substantiate its claim, the bench believed the version of the complainant to be true and allowed the complaint.

It held the company liable for deficiency in service for failure to deliver the project on time and granted the following reliefs:

1. Refund of Rs. 18,60,000/-
2. Rs. 1,00,000 as costs for mental agony and harassment
3. Rs. 50,000 as litigation costs

Case Title: Amit Bharana vs Mobulous Technologies Pvt. Ltd.

Case Number: CC 891/2015

Advocate for Complainant: Rakesh Kumar

Advocate for Opposite Party: Rajev Goswami

Date of Decision: 18.06.2025