Loan Related Case

I had worked in a Proprietorship company long time ago and that owner has took some loan from an small NBFS company(a small money lender). As per money lender, owner has not paid his loan in full and now he has filed a case against him. Even after filing the case the issue was not settled and money lender is not settling with the amount offered so he filed the case against me where he says that I am the Guarantor however I did not signed any documents neither I did know anything about the loan. Also, there is no reason for me be a guarantor as I was just an employee there and not getting salaries on time that's why I left his company. I am not in Mumbai and I am in some other city doing some other job. My family is getting emotionally distressed due to Police coming to my house and asking about me. At first they told them that they don't know where I am. Then I spoken to my employer he said that I have nothing to do with me and he is just harassing me to get to him, also his wife's name is in the summon as well along with me. He told me that ask your parents to stick to their words as it might create issues for me and he will settle this with his lawyer, even his lawyer has advised the same. What should I do? Should I continue to wait for him to settle the things from his end? Or I should go and fight in court as well because I did not do anything? Please help!