Company asking for final Settlement of Dues

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I worked with this company for 7 months . I was terminated last month due to absence from duty due to some problems. Yesterday i got a registered mail from the company asking me to pay amount(1 lakh). It states "Failure from your part to abide by the terms and conditions entails a blatant violation of the agreement . In case we do not receive the draft by XX the company shall initiate appropriate legal proceedings against you as deemed fit ." I cannot pay that hefty amount .I don't want any relieving letter or any experience certificate. What should i do.

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