If he's ok with Android, I guess he should extend his budget a bit and check out for Motorola Defy Plus (around 16.5k, saw on ebay) or Samsung Galaxy S (around 18k, not sure). Don't settle with any Android phone having less than 1Ghz processor for a better Android experience.
Well, if she has a very strict budget, she can check out Samsung Galaxy Ace (around 13.5k) Or HTC Wildfire S (around 13k).Regarding Defy+ (an upgraded version of Defy), it's priced at Rs.17400 on Flipkart. Saw 16.5k on a deal in ebay.EDIT: Forgot to mention that Samsung Galaxy Ace has an outdated processor (ARMv6), and many applications (e.g. Firefox for Android, etc) require atleast ARMv7. ARMv6 doesn't fully support FLASH too. I would suggest to stay away from Galaxy Ace.
most of the ppl online say ace is better. coz htc's sense eats up most fo the available ram. plus bigger screen on the ace. fwiw i have a galaxy ace. never xperienced any lag whatsoever. the cpu & gpu both r quite capable of handling everything. galaxy ace or wildfire s - Android Forums
plus ace has a huge community support(most samsung device do) and easier to root as well.
I was searching phone for same criteria.
Short list -
1. Samsung Galaxy Ace - Great screen size but low on processor and its relatively old phone and update coming soon (14K)
2. HTC Wildfire S - Slowest processor and only 256K colours. Total looser (13K)
3. LG Optimus hub - Biggest screen 3.5 Inch but 800 MHz processor (13K)
4. Motorola Fire XT - Biggest Screen 3.5 Inch, 1 GHz processor. Best if you want biggest screen under 15K. (12K).
5. Sony Ericsson Mini+ mini Pro - 1 GHz Processor, upgradable to 4.0 but only 3 inch screen (13.5-15K)
6. Sony Ericsson Live walkman - 1 Ghz Processor, upgradable to 4.0 and 3.2 Inch Screen looks like winner (14K)