False case of cheque bounce file. How to save self as money returned?

As per the Governing Law, the person who issues a cheque is liable under the Negotiable Instruments Act to the person to whom the cheque has been issued. So in case you have issued a cheque to another person, it will be considered that you owe the person the said amount, and the payment is being made to fulfil your obligation towards that amount due, unless you are able to prove otherwise.

However, since there was no contract of Guarantee, you cannot be made liable to pay the amount.

We advise that you must contest the case by bringing all the facts you narrated above. Once the above said facts will be brought on record, the burden to prove your liability against the complainant shifts to the complainant and he would fail to prove cogently how he came into possession of that particular cheque and in lieu of what service he provided to you he obtained the cheque. 

So, take a shot and contest the case as anyways under the so said 'out of court' settlement you are being asked for an amount higher than the amount tendered (falsely written) on the cheque.