138

If bank has taken the posession of flat and cheque was given as security then too they can file case u/s 138 

The cheques are linked to such repayment of the loan and taken for the specific purpose of proceeding against the borrower in case of default.  Bank can proceed against the borrower for lawful action for cheating them by issuing a cheque without caring to maintain sufficient balance in the account.  Security and repayment are different aspects altogether, and there is no bar to banker proceeding against the borrower for recovery when there is enough security.