Case of senior citizen and bank

Mr.A in mumbai receives a cheque of 40lacs from Mr.B in Delhi for kind of compensation of monetary loss occurred to Mr.A due to Mr.B. Mr.A puts the cheque in his bank in Mumbai and it easily gets cleared and Mr.A gets 40lacs. He uses the money for his family expenses. After some time Mr.A is told that a case is filed against him cause Mr.B did not have the amount in his bank in Delhi still cheque got cleared so there will be investigation. But Mr.A says how is he responsible for it . Actually Mr.B and his bank is responsible. But Mr.A is told if u just return the full amount in one stroke to the bank you will be out of it. But Mr.A has really no money to give but he has to appear for hearing at delhi.Mr.A's lawyer says don't worry your not a culprit I will take you out of this mess. Can Mr.A file case of defamation or damage against Mr.B and/or his bank .If yes then where should he do that in Mumbai or Delhi and for what amount. Plz advice what should Mr.A do. Its urgent for an innocent senior citizen man plz..