Supplier delayed delivery now asking for money and legal action

I ordered a container quantity from a shoe supplier in Kanpur in October 2016 which he said he will deliver in 30 days but the material reached us in January 2017. Payment terms agreed were 45 - 60 days. We placed another order with the manufacturer for container but told them we need timely delivery (as it was for a specific order) which he agreed but even after continuous follow-ups till March 2017 he did not deliver the material. We paid for 1st container partially till feb and all remaining dues for first container were cleared by March 2017. now in April he has started forcing to pick up the material for 2nd container but we told him we have lost the order due to his delay and now we don't need the material. he is threatening to take legal action. What can we do to protect ourselves from any legal hassles.