If you have an  undated cheque, you may fill it up and present it to your bank for collection.

If the cheque is returned unpaid you may send a legal notice demanding the cheque amount  and also instruct that failing to  repay the loan amount she will be prosecuted  for cheque bounce offence under section 138 NI act.

That is the only option before you now to recover the amount for the time barred loan 

Send reply to legal notice denying that money has been repaid 

2) mention that all cheques issued have been dishonoured on presentation 

3) deny that illegal money lending business has been carried out 

4) file police complaint of cheating against lady under section 420 of IPC 

Reply to legal notice 

file case of cheating against the lady 

You should not be bothered about whether the bank is there or not. 

You deposit the cheque with your banker, get it bounced and then initiate legal process for prosecuting him and cheque bounce case. 

1. First of all, you have no need to fear. It was a friendly loan given and it doesn't fall in the scope illegal money lending business. So there's no scope of prosecuting your mother. 
2. Rather it's good that your mother received some legal notice. This establishes that she had given some friendly loan, and hence, she is now in a position to recover by filling a money recovery suit. 
3. I'm willing to handle your matter as your counsel (advocate). However, I need an exhaustive consultation session with your mother first. I'm based in Mumbai 'NaviMumbai just as you are; hence it shouldn't be much difficult for your mother to visit me along with you. 
4. ९८२०८९७८८४. (Nine eight two zero eight nine seven eight eight four) 

PMC bank cheques are infructious. Don't deposit them

Since the civil suit for recovery of money is barred by law of limitation and case under section 138 NI Act can no more be filed, inow only the option of criminal case is left.

So file a case of cheating . 

Dear Sir/ Ma'am, 

I always recommend lending money to anyone, be it family or friends, only after having a promissory note or any other written contract in place. When you lend money without these, it is very difficult to prove in the court of law that there infact was an agreement for the repayment of money. If you have any evidence that you have lent the money, then you can file a civil suit for the recovery of the same in the court. Under Order 37 of CPC you can file a summary suit after which the defaulter will be summoned to the court. You can also file a suit under the Negotiable Instruments Act, given that you have a written evidence in place. If not, it is best to personally contact the defaulter. 

- If your mother having proof of payment to that lady , then legally she can get refunded that amount .

- Further , if the said cheques are undated , then she can submit the same with the bank with which this bank has been amalgamated. 

- Further, if that cheques are dated , then she can file a recovery suit against that lady within the limitation period of 3 years. 

- Further, your mother should file a compliant against that lady after narrating that she is not returning the given loan amount , and on asking she is threatening. 

Hi, you have to present the cheque and if the cheque is dishonored then you have to file Complaint as per provisions of the Negotiable Instrument Act.

You can still bounce it and file a case against them under 138 of NI Act

Hey, in reply to your question.

You can give a reply of the notice which she has sent to you.

You can use cheques for the recovery of money, subjected to limitation law.

No one can claim anything from your mother unless she proves it in the court.

You can also claim your money back, a recovery suit would be advisable.

Regarding the money, she has returned back, she has to prove how she has done that, which is a difficult job and various other things.

Claim your own money alongwith compensation for the mental harassment which she has done by sending you a legal notice for illegal means.