Supreme Court should come forward and rule that S.138 is not applicable for finance/loan issues.
It should be a purely civil remedy. The point is no prudent person (at least Banks / Finance Company) should release loan without adequate fixed asset as security. Due to this S.138 even a cheque leaf has become security, which is non sense in such matters.
Since the case has started, and you do not have means to even hire the advocate, file your statement to court stating the fact. Please do not forget to mention that under natural justice and under the circumstances you cannot be dragged as accused in criminal case as this is purely civil matter and this court should highlight the plight of people like you to higher courts. It is criminal on the part of Bank to arm twist you under the garb of S.138, they should have ensured proper fixed asset as secuirity for such eventuality. There was no dishonest intent on your part at the time of taking loan and these EMIs have bounced due to your misfortune and still you wish to honorably settle the same in due course.. Also please mention that if 3-4 months time is given to you, you would repay.
Before doing this please discuss with the Bank and make them understand that you can pay within 3-4 months, give this proposal in writing and take a letter from Bank. Attach this letter with your statement clearly mentioning about your intent and acceptance of your intent by Bank. If you do not do this and straightaway approach the court with your statement, then in all likelyhood court will convict you, may not sentence you harshly, but it will not be favorable atleast under present cognizance by courts of dishonor of EMI cheques.
Who knows your this submission may end the plight of lacs of people like you, but you must know that dishonesty must be punished.