Threat of legal action

As a first step :

- Save all E-mail correspondence, ad given on OLX and any documentation you may have that the defect now being claimed against was clearly mentioned in the  ad. as well as explained to the Company Rep. Ideal is if your ad / E-mail corresp. said " Sold as is where is with no warranties/ guarantees of any type" or something similar.

- If you have all above, simply respond to the Legal Notice putting the facts clearly. Also mention therein that they have sent the product back to you without your consent and it is being kept with you at their own risk . Further , if they don't take it back after paying you a certain storage charges by such and such date, it will be disposed off without any liability on your part and no amounts will be payable to them.

I don't think they will bother you any further.

Just my thoughts. Request Senior friends for their views too.

Thanks a lot Hardeep for your response. I was thinking to not respond at all to the notice since I haven't yet received anything by registered post. What I was planning now that I have the documentation handy, I should wait for the written notice and not accept the same. This way, they can't proceed with the case filing at all. 

What I was more interested in knowing is that in what legal forums can the claimant file the case if at all. They can't go to consumer forums since they are not the end consumers! And what at max may be required off me.

If I reply to the notice now. they would have proof of my receipt of notice and may file somewhere and I don't think its worth the time for me get involved in court cases for such petty amount.

Frankly, IMHO, not responding to a Notice - either received by E-mail or by Registered Post is not a good idea since - if and when the case goes further -  this will be adverse inference against you. Refusing to accept a Registered Post Notice does not mean the case is finished - it will go on record that Notice was sent to your address and "someone" refused to accept it. The Case may well then proceed Exparte - with the  possibility of your presenting your side of the story becoming still more difficult .

As to the Forum, as far as a Consumer  Court is concerned  " One Party must give in the course of Business and the other receive it as a Consumer " ( or something similar , do not recall the exact language right now.. :-) ) So, if you are not in the  BUSINESS of selling Second Hand goods, the case will not go to Consumer  Court. A case of " false representation " could be tried to be made out  - which is a civil matter - and for Rs. 5000 as the value involved -  will most  probably  go to Court of Small causes. As for the maximum required off you , that  is a subject of interpretation and the damages/ cost claimed by the Complainant  and finally decided by the Court . Of course it has to have a nexus with the value of the goods and if you find it unreasonable you can go for appeal.

Just my thoughts. Request Seniors to come in with tehir veiws.