We are a BPO company. We have given some work to a company based in Bhutan. We have offered the rate for the work that is 100% in quality. But they are not able to achieve the quality benchmark due to lack of resources and lack of expertise in the existing resources. The quality audits of their files are done by our client and not us and the feedbacks are given to them on a routine basis. Since the quality is not up to the mark, we have to use our quality assurance staffs to edit their work and maintain the quality. So in the invoice amount, we have made deductions for their poor quality to compensate for the expense incurred to use our quality assurance staff and settled the invoice and terminated the work. But they are threatening us to pay the full amount or else they will contact the indian embassy over there to recover my dues. What will the indian embassy will do? butan vendor is threatening like once they approach the indian embassy, the indian police will arrest me and bring to bhutan and all. Is this is the procedure, pls advise me.