The case can be quashed if it fulfills the legal parameters of exercise of quashing power. If you can prove that there is not even a prima facie evidence in support of the case then it may be quashed. You can sue him for damages on account of malicious prosecution once the case is quashed.

1) wait for police investigations to be completed

2) if police do not find any evidence against you police would not submit any charge sheet against you

3) you can file case of defamation against complainant if police find no substance in allegations levied against you

You can move HC for quashing of complaint under section 482 of Crpc on basis of statement of witnesses that they have not levied any allegations against you

2) It is necessary to peruse FIR lodged against you to advice further

3) contact a local lawyer

Yes. You can get the petition quashed in high court and also launch defamation proceedings against them.

since your father is retried district judge he would be well conversant with the legal remedies available to you

go by your fathers advice

now my question is, can i get this counter case against me to get squashed in the high court? also if the case against me gets squashed, can i file a defamation suit against them?

Yes, you can approach high court with a petition under section 482 cr.p.c. requesting for quashing the counter case against you.

Once the high court quashes the case and the trial court discharges the accused, you may analyse the option for filing defamation case accordingly.