fraud by bank

dear members...my friend mr.a had lost his cheque book one year back..he repoted it in police station and got acknowledged dd entry from police station...he also informed bank about it and stopped payment on cheques and got recieving of it by bank...now mr.a had a business partner who had actually stolen the cheques and he filled one of the cheque for 28 lacs nd presented it for clearing and cheque bounced nd my friend recieved notice regarding 138 ni act but in that notice reason fr bouncing is mentioned as "insufficiency of funds"...my friend suspects tht his partner along wid the concerned bank is trying to do fraud wid him...wht should my friend do????can he lodge fir under 420???pls help...thanking u in advance..