cheque bounce

A builder defaulted on flat possession. In settlement he issued a cheque to the amount of booking Rs 200000. the cheque got bounced. Had sent a legal notice to the builder, but it returned unreceived. now the lawyer suggested to file a case for which the cost he mentioned is 2.5% of the cheque amount for court fees and his fees he qouted was 20% of 200000. This is the case one of my friend who earns 13k a month approached for suggestion..