money extortion /recovery on false bases.

A person has got blank cheque i.e. w/o name and date but the cheque was signed iwth certain amount . Basically it was security cheque against cash money to be returned when money was to be paid w hich was paid in time but the cheque was not returned by the person and kept willingly on the pretext saying that the same was not available with him.knowing the non availability of cheque and besing blank could be misused by anyone ,the cheque was cancelled on the same day,Further the same cheque was presented by the pesornunlwfully holding , in bank and was bounced.then he sent a notice for claim saying that the loan money was paid against cheque loan to the person and claimed the same amount which was already paid to him in cash. The person has filed suit under ection 26 order 7 rule 2 in sr. civil judge 's court inhis native village court where he willingly presented the cheque once and thus trying to harrass in faraway court. Kindly tell the remedy and till how long the case be prolonged. Thesuit is filed by supporting with the cheque and the rpely of denial for suckh loan or payment du to him.