Defamation on internet

CASE DETAILS We are importers of all kinds of educational products, games, toys, DIY kits, science projects, robotic kits etc. We regularly advertise on internet to appoint distributor for marketing of our products. We also teach robotics to kids and children for which we also offer Franchisee to open robotic training centers in different cities. During the month of March, 2015 one person BMR claimed to be working with ICICI bank as bank Manager, from Hyderabad responded to our advertisement and shown interest to become our sole distributor and Franchisee for whole of Hyderabad district. After exchange of few emails and telephonic discussions, he was very keen and agreed to become our distributor as well as Franchisee. According to agreed terms, he remitted Rs.1,15,000/- into our bank account. ( Rs. 1,00,000/- to become the distributor and Rs.15,000/- as advance to become the Franchisee, against the total cost of Franchisee of Rs.35,000/-) Balance Rs.20,000/- was supposed to be paid when he comes to Gurgaon for the robotic training. We had agreed to supply goods worth Rs.1,00,000/- for the amount paid by him. Initially, he placed the small order for about Rs.50,000/- out of which we supplied him goods worth Rs.40,000/- approx.. After receipt of goods, he said he is not able to sell the products in the local market and therefore not interested to continue the distributorship. Accordingly , we agreed to refund the balance amount of Rs.60,480/- and we refunded the same. As regards to the advance of Rs.15,000/- paid by him to become the Franchisee, we offered more than 5 times different time schedule to come to Gurgaon and take up the training. He never turned up and wants refund of Rs.15,000/- When we refunded Rs.60,480/- we also took an undertaking from him before releasing the amount. The details of the undertaking are as follows:- ( ON LETTER HEAD OF M/S BMR ASSOCIATES WITH COMPLETE ADDRESS AS MENTIONED IN OUR AGREEMENT) UNDERTAKING Dated April…….,2015 M/s ..................... ............................... ................................... SUB: FULL AND FINAL SETTLEMENT OF ACCOUNTS Dear Sir, We had approached you to become your distributor for marketing of imported educational products along with Franchisee to open a robotic training center in Hyderabad and remitted Rs.1,15,000/- into your bank account for the same. Due to some unavoidable reasons, we are no more interested to continue and wish to close the matter for ever. Please refund Rs. Sixty thousand four hundred and eighty only as full and final settlement of account after deductions of Rs. Fifty Four thousand five hundred and twenty only for the goods/services supplied/ provided. We, undertake that we have no claim what so ever and nothing is due to us , after receipt of Rs Sixty thousand four hundred and eighty only. Thanks For BMR Associates (B.M. R) Proprietor/Partner Party has signed the undertaking on his firm’s letter head and we made the payment of Rs. 60,480/- by crossed account payee cheque, in the name of his firm, which he got encashed. After receipt and encashment of cheque, party again started demanding refund of Rs.15,000/- and threatened us to damage our company’s image on the internet. We repeatedly informed him that our account has been already settled as full and final and nothing is due to you but he is not agreeing. When we didn’t agree to his wishes then he started posting reviews/ remarks about our company on internet and he also confirmed the same through SMS. However, we couldn’t trace any posting on the internet till date. He informed us that he is continuously doing so and will keep on doing until we fullfill his all desires. We also threatened him through email that if he try to tarnish our image then we will file a defamation case in the courts of Gurgaon. Please advise the solution to the problem and which one you suggest:- 1) Keep silent and let him do whatever he is doing. 2) Refund Rs.15,000/- as per his wishes. Later he can also demand the refund of Rs.40,000/- as he has totally failed to sell the product or he can blackmail us for some other reasons. 3) File a defamation case in Gurgaon court by first issuing a legal notice to him. 4) File a case in the court under Cyber defamation law to prevent him for posting against us. 5) Any other suggestion