Thank you everyone for your inputs.
Yes, I am worried because Mr. A is behind the bars for committing fraud in an another city within India. Now, I cannot get to know if the cheque was drawn by Mr. X in good faith or was it taken by intention of committing another fraud. An email or a written legal contract now seems remote, as he is already behind bars. The police who is handling the case says, he has spent all the money he took and he has no assets in his name, not even a residential flat or bank FD.
The cheque is crossed as A/C payee and has all fields except for the name, which Mr. A said you fill in your name because I dont know how your name is mentioned in your Bank account. The problem is there is no written proof and/or witness that I gave him money in cash and he gave me cheque as a proof of repayment.
Since this Mr. A is now behind bars, I doubt on how he got this cheque. The cheque however passed UV test at the Bank, which means the cheque is original. I neither know who is Mr. X nor do I have any direct cotractual liability with him. Can this Mr. X sue me and recover the money back via police or some lawyer if the cheque is honoured? In the event cheque if is dishonoured, should I sue Mr. X as he has written the cheque, even though there is no evidence that a contractual relationship exist? Is there any chance of recovery if the cheque is dishonoured?
Please guide me on how this case will proceed in both events, firsty, cheque is honoured, and secondly, if the cheque is dishonoured by the bank for whatsoever reason.