Does Indian labour law apply on employees in foreign subsidiary

I was employed by the Indian subsidiary of a US company. After I started working, they told me that they can't pay me yet because their payroll was not setup yet but assured me that they'll pay when it's setup. I kept working in good faith but they kept having more issues with payroll setup and never paid. They offered to pay me via wires and via black money, I refused. After some months, I told them that I'll not do anymore work until past dues are cleared. Then in my frustration, I agreed to be paid via wire and they said they'll register me as a freelancer with their US branch and pay. I sent them an invoice of the owed amount. Then they paid around 3% of the owed amount and started claiming that I did only 3% work so they'll pay only that much. They had never once informed me that they were not planning to pay me the full amount until then. They also claimed that since I stopped working, it resulted in losses and threatened to sue me. Does Indian labour law apply? What to do?