Is "Jaypee Associated Limited" allowed to act as police, court to collect costs on the spot?
Is the railing insured? Has the company lodged a complaint with police? What is the actual cost of damage? Did you offer to get it repaired/replaced?
Were they willing the issue receipt of the cash they were demanding from you?
Have they issued acknowledgment of the cheque collected from you?
You should have approached your lawyer and your lawyer might have adviced to issue notice not to present the cheque that was forcibly collected from you.
Kindly approach a competent and experienced lawyer. Your lawyer would know how to handle the situation. Your lawyer may issue a legal notice or may talk out the matter.
You could have at least discussed the matter with your area councilor and talked out the matter and resolved it.