Refund of wrongly credited cheque

Hi,

I am a Bank officer, and I work in a service branch where we need to pass the cheques after verifying them.

I passed a cheque of Rs 2 Lakh accidentally, and the cheque issuer had just Rs 500 in his account. Money got credited to the recipent person. After realizing my mistake I called up the recipient, and asked him to return back 2 Lakhs, but he refused. Then I called the issuer for refund, and he says he gave the cheque for a return only, and he cant do anything regarding refund of 2 Lakhs. Both of them wont return the 2 Lakhs.

Now, bank is asking me to pay 2 lakhs from my expenses since I passed the cheque. What can I do, is there any way to proceed further - police or court case? Please guide me. 

Thanks.