Suggested one company's name to invest person filed case against me

I belong to Punjab, India. In the year 1997 one of my Neighbor deposited Rs. 1,20,000/- in private firm i.e. Surbhi Forests India Ltd., Manimajra (Chandigarh) as recommended by me (I was not Agent of Company). After that company ran. After that the Depositor started to threaten me. Meanwhile I given him Rs. 10000/- cash and a cheque amounting to Rs. 1,10,000/- to him without date so he can cash it after one month. But he cleverly bounced it and fixed a case on me to recover the money. Now he registered case of 420 and cheque bouncing on me. I m in govt. job. Please guide me.