Client asking for a refund with interest of 15%

Greetings! I've created a set of graphic designs for a client, this project started about a year ago and had a costing of Rs. 45,000, Out of which 50% was paid in advance by the client. However, due to delays in regards to from their side and mine too. The work in progress of the deisgns was shared to the client in January this year, with no followup feedback from the client. Now, after 4 full months the client is replying back asking for a refund - stating: "As per standard legal terms based on the fact that no satisfactory output has been delivered I would need a refund + 15%interest for 12 months", marking his legal advisor. However, the client hasn't communicated with me prior to this regarding any sort of refund nor we've signed any agreement that states the same. I'm not in the position to refund the money at any cost. Since 50% of the work has been completed. However, I'm willing to complete the full work as soon as possible. How do I proceed? How legally concerned should I be about this?
Reply Mumbai : 9820174108

1. As a Service Provider /Vendor, you are legally bound to complete Clients work within a decided /reasonable time frame, more so when you have committed your services by taking advance payment.

2. IF Client's work is not completed within decided /agreed time frame, THEN the Service Provider is guilty of Breach of Contract /work ethics and the Client is entitled to cancel his work and seek refund. Prosecution can be initiated against you for negligence, deficiency, trade malpractices, etc.... 

3. It is immaterial /ill-logical to admit, that you even after one year, you have completed only 50% work for such a small assignment.  Either settle amicably with Client, or refund his amount, to avoid falling into legal issues.

Keep Smiling .... Hemant Agarwal



Submit detailed reply to the client with a request to cooperate and extend time or some other amicable settlement, otherwise you have failed to perform your contractual obligation and client is well within his right to seek refund.

Retired employee.

And also contact the local advocate and respond to the notice immediately, and avoid direct communication to the client without consulting your advocate.


Hello Gilbert!


In your case you have not clearly mentioned the reason for the deay. was it due to dekay in receiving inputs, instructions or confirmtaion from the Client? which the client have failed to give, even upon your request? if yes, then you have a chance to defend yourself. Else, Client have the right to seek refund from you, the advance paid by him/her.



Adv. Rohit Dalmia


Issue reply notice that no delay orwrong has committed from your side ,and allegate that client is not co operating and due to his negligence that you have sustained heavy loss ,damages and say that he has to pay Rs50000 as damages thru advocate.let he go to court.advocate will defend you.

You have the option to reply to Notice denying the volations of the terms, if any and demanding the payment of the balance amount on completion of the work. But introspect - have you not been less than diligent in fulfilling your contractual obligations?

Total likes : 1 times


Terms of agreement is required to be examined. If agreement provide then you have to refund the money with agreed interest. Since default and delay is also constituted on their part so sent a detailed reply refutting the allegation. Merely because the other party has not demanded refund ealier does not amount to waiver. The limitation in 3 years in such cases. 


Dear Sir,

I agree with the opinion of Expert Mr. Dr J C Vashista 

Adv P & H High Court Chandigarh

If the client is responsible for the delay then accuse him in the reply otherwise make a settlement beyond the terms of the agreement instead of going to litigation.




Your are not logged in . Please login to post replies

Click here to Login / Register  


  Search Forum



Post a Suggestion for LCI Team
Post a Legal Query
Muslim Personal Law     |    x