Send the cheque and challan by local speed post for credit of the account and request the bank in covering letter to return the cheque with such reason for dishonor with such cheque returned memo, if not paid immediately on receipt of the envelope.
If you have an account with some other bank, credit the cheque with another bank branch and let the cheque be presented through clearing.
The payee is entitled either to such payment or return of the cheque stating reasons for such dishonor. I never heard a rejection of cheque for collection by a Collecting Banker. In this case, the Collecting banker stepped into the shoes of a paying banker and illegally rejecting the acceptance of a cheque for collection. This amounts to a serious deficiency of service. As per NIA if the Collecting banker's negligence is there he is liable for the delay and negligence.