Urgent advice please

This is to let you know that I had borrowed a loan from the previous institute i was working which was a lakh after a year there was a power shift and was removed from the job being a permanent employee of that institute in july 2012 stating no reason. They cleared my salary and also the PF. 

There was no communication from the institute till Jan 2014. I receive a letter from the institute stating that a case will be lodged against me and a copy of it was sent to my present employer. I send them a letter asking them to clarify all the account and let me know. After that they sent me a notice through a lawyer in month of April and later in June with the same content to which i did not reply.  

Now they have moved to ACJM with the plea to register a case under 156(3) crpc by the local police station.

what is the validity of the case and the worst senario of it.