Hi Team, I designed a SaaS based e-commerce marketplace. I hired a Registered Pvt ltd development agency for developing the project. All the invoices are paid to the agency and the project has not been delivered to me yet. The delay on the project has been 6-8 months now. How to go about it?
1. What terms and conditions were mentioned in the development agreement you have entered in to with the developer for developing the project?
2. Was there any penalty clause for delaying the project beyond a certain period?
3. Take action including legal action strictly based on the terms and conditions mentioned in the said development agreement.
You can terminate the contract and claim compensation for delay in delivery of project
if agency refuses to pay file suit for damages
You have case under Consumer Protection Act, 2019. Issue notice seeking compensation for losses due delay in project delivery and refund with interest. You will get refund with interest, compensation for delay, cost of complaint and lawyer’s fee. Under new Consumer Protection Act, 2019 adjudication of dispute is very fast.
- Since, you have already paid to the agency , then the said agency is bond to delivered the project without any delay.
- You should send a legal notice to that agency , and if no response then approach Consumer Forum , where you can also claim compensation for the delay as well.
Dear Sir,
1) Your case will depend on the terms of the contract, You can file a civil suit and claim damages.
2) You also have the option to file suit in consumer court for deficiency in services.
3) First step in both cases will be to send a legal notice to the opposite party.
Thank you
So you have to check the terms and conditions mentioned in the agreement you made with the developer for developing the project.
Also there have to be timelines and penalty clause for delaying the project.
Is there mention of arbitration ? if yes then first you have to go for it. You can take legal action based on the terms and conditions mentioned in the agreement.
But everything starts with sending a legal notice first.
Send them a letter warning them of legal consequences in case of delaying the project further. In case they still do not budge, send them a legal notice and seek refund of your payment.
If the agency has entered into an agreement with you in this regard with time specified in it about the completion and handing over, then, in case of delay in handing over the same, you may first issue a legal notice and demand the handing over of the completed project within 7 days from the date of receipt of this legal notice, failing which the agency would be held liable for the losses and every day basis for each day beyond the time stipulated in the legal notice.
If the agency is not complying with the demand you may approach court with a suit for specific relief and demand the execution of the handing over of the project and also to compensate the losses you incurred in this regard.
there is no team on kanoon
you will have to file a suit for specific performance of contract
You can send them a legal notice and subject to their reply can take legal recourse of filing a consumer complaint if you are a consumer
For proper advice, I would like to refer to the Master Services Agreement you have entered into with the developer, the governing law, the jurisdiction, and the dispute resolution process concerning the agreement.
1. Due to Covid-19 pandemic and the lockdowns which have been imposed throughout country the delay is covered by Force Majeure. Hence, it will be futile to go to court.
2. Wait for lockdowns to be revoked.
Dear Concerned,
As you might have already sent follow Up emails and calls to them, now you may resort to legal remedies. If you do have an agreement in place then resort to the specific performance of the same or if you don't have the agreement in place may also file a criminal complaint of cheating against the party.
