PF settlement

Dear Sirs, I had resigned from my previous employer in Sep'09 after serving for almost 2.5 yrs. I was assigned Overseas and I had signed a bond,I was supposed to serve them 2 yrs or pay 4.24 lacs after the end of overseas assignment. After my assignment I resigned in 6 months and sent them my resignation by email. I had mentioned that they can recover the notice period pay from the deductions they had made from my salary during my assignment.They filed a recovery suit and I am defending it since last 7 yrs. I requested them for my PF release, they did not bother to reply. I submitted my application to PF office for my PF claim (Private trust) now (after 8 yrs) and the ex-employer issued a settlement cheque, but with a stop payment instruction and hence the cheque was not cleared. When I informed them by email, HR head replied in email that I have not been relieved from employment, hence no settlement can be done. My questions are as follows, 1) If they said in email that I have not been relieved from employment, can I claim that they have to offer me employment benefit till date? 2) Can they hold my PF if we are still in court for that Assignment contract issue? 3) Can I sue them to hold my PF for almost 8 years? 4) Can I isue them to send me a final settlement letter and cheque with a stop payment instruction? 5) The employer is in Mumbai and I am from another city, can I file a suit in my city of residence? Your guidance shall be highly appreciated. Thanks & Regards