Advance payment
Dear All,
I am working in a small scale industry as a purchase dept head. Last month we have been paid Rs. 3.3 laks ( 40 %) by cheque against proforma invoice to our vendor for supplying wire mesh pallets. 5 days after they raised query about surity of their remain 60% payment after supply,since they already agreed for 30 days. But suddenly he demand us to pay entire amount to him ,as he said "then only he can manufacture and supply otherwise can't" . We didn't agree for that and asked him to supply only for the paid and replied him to shortclose the PO. But he didn't care , also holding our advance payment. Hence we decided to close the issue by the negotiations but it has been failed. Pls advice whether are we eligible to approach him by legally and is there possibilities to retrieve our advance payment.
What we have to do now .Pls explain step by step.
We have following proofs
1) Cheque received acknowledgement by his sign
2) E-mail conversations
3) Proforma Invoice given by supplier
4) Indemnity form signed by him
5) His quotation
Awaiting for ur valuable advice.
POONGUNDRAN
Chennai