please help me with case study ,

a)Sohail works for the maker of a high-end battery that is favored by many electronics manufacturers. Two weeks back, one of their high volume - but also high maintenance - clients placed a large order with Sohail for these batteries. Sohail and his manufacturing team worked very hard and kept their promise of a four-week delivery, for the 1,000 batteries order. Just after the delivery had left, one of the junior employees informed Sohail that 3 batteries were found defective, but there was no time to replace them, and it is normal to have a .03% defection rate, as per local industry standards and as per their standard agreement with the client. Sohail thought of phoning the client with this information, but his counter-part is a grumpy old-man and may create fuss; he thought it might be better to let it go for the time being and if the client complained later, have the batteries replaced under normal warranty procedures.

Is that the right thing to do? If not, what should he do?