Legally enforceable debt

I am a property dealer and few years back i came in contact with a person who is also in real estate and collaboration business, this person told me that he is working on a big profitable project and has invested Rs. 2 Crore in some property, which he is buying for Rs. 76 crores,but he has not got the title/possession of the said property. he gave me an offer to become a partner in the same and accordingly i alongwith my two other friends entered into an agreement with this person for the said project and accordingly we all three friends collectively paid him Rs. 20 Lacs in cash and gave 3 cheques of Rs 40 Lacs each to him to be encashed within 3 months, but in-between we came to know that the said property is a Govt. acquired property so we asked this person to not to present our cheques and to return our cash amount paid to him and canclled the said deal with this person but instead of returning our cheques he got them bounced and filed a case under section 138 ni act. my question is "is he entitled to file this cash? is it a legally enforceable debt? what defence can i have in this case?"