Cheques kept as security, presented in bank by company

Hi, I started my business in 2011. I signed a dealership with a company who took 3 cheques from me as security. Everything was going good until once that the company sent me extra materials than what I had ordered. I asked the company to take back the extra material and settle the account. However, they chose not to pay heed my situation. This material went down as a waste for me. I suffered losses due to the same. I am now deciding to close down the company and to do a job.

During this time, the company presented the cheques that I gave them as a security amount to the bank. The cheques bounced due to insufficient funds. The company now says that they will file a case against me, that to in another city. Is there any way I can defend myself on court?