Notice for Settlement
It is now March 200X and the account for goods supplied to you during March 200X is still outstanding. We have already written to you several times regarding the matter and have furnished invoices in duplicate.
It the circumstances, we regret to inform you that unless we receive the payment within a week, we may be compelled to instruct our lawyers to institute legal proceedings against you.
for Vali & Co.
Reply to above
M/s. Vali & Co.,
Goods supplied by you to us in February/March 200X were found defective. As they were below specifications and hence not fit for being supplied to our customers, so these were returned to you in April or May. As a result of this no payment is due from us to you.
for Vali & Co.,
Kindly send your man to settle the account in person to avoid further delay.
We will issue the cheque after settlement.