ShopClues.com — Order cancelled where money was taken in advance

Address: New Delhi, Delhi, 110088

Website: www.shopclues.com

I had ordered for a sofa cum bed (With order number[protected] which was to be delivered by april 05-09. The order amounted to rs 12498.00, which was taken in advance.
We received a message from shopclue on date: 18.03.2016 stating “hi! Your shopclues order 87858146 for fabhomedecor - ariana wooden frame sofa .. Might get delayed due to unforseen issues on the seller end. We are following with the seller to ship the order at the earliest.”.
Following this we received a message on 28.03.2016 stating “hi! Your shopclues order 87858146 for fabhomedecor - ariana wooden frame sofa .. Is delayed. We will notify you of order cancellation in 48 hours, if we fail to fulfill it through another merchant. We regret for the inconvenience caused. For order updates.”
Following which we received a message on 29.03.2016 stating “hi! Your order 87858146 for fabhomedecor - ariana wooden frame sofa .. Has been cancelled as merchant could not dispatch it in time. We have initiated the refund of amount 12498.00 which will be processed by 29/03/16.”
And another message stating “hi! We have processed the refund for your shopclues order 87858146 for fabhomedecor - ariana wooden frame sofa .. And the amount will reflect in your account by 03/04/16.”
Please familiarise me if this is right as per laws. We have paid shopclues money for a piece of furniture, for which the company is enjoying the rate of interest and returning the actual amount stating that the furniture is not available with them. Why do they commit on something that they are not able to accomplish and play around with general public’s money. If they were unsure of the delivery they should have kept an option for cash on delivery, but this option was not available for this piece of sofa cum bed. I would be happy to file a complaint againt the company for such an attitude towards customer and would appreciate if a strict action is taken on this.