When we choose 'Compile & Run' from B4A ide why the new database does not get overwritten on the mobile ? Why is it that I have to UNINSTALL the earlier application from my mobile to delete that database on my mobile ?
Because you probably ONLY copy the Database from the assets when the Destination-DB does NOT exists.
Check your code; it may give you more info. You give us not enough information to give a congrete answer.