Legal Question in Employment Law in India

I was working with a private Business Institute in South Delhi. I joined them in May 2011 in "good faith" without getting any appointment letter, but I received an offer letter. In Since June 2011 they stopped paying us on some pretext or other. We still continued on good faith and trusting our director's words. On 31st July he declared that as the institute is not doing well and not getting many admissions this year, therefore he requested us verbally to reduce our salaries 1/6th for six months. we agreed to this. All this was verbal.

In September he paid us our salary for the month of August (with 1/6th deduction) whereas, June and July salaries were still pending.Meanwhile we were taking lectures as per our scheduled duty. On October 31st, Director finally asked us not to come from November, again verbal. After our repeated failed attempts to meet him or speak to him about our pending dues, we finally went to his residence to meet him and solve out the problem. He agreed to give us post dated cheque ASAP. On 26th Novemeber we received 3 cheques of various amount with the encashment date as 9th Dec, 24th Dec, 31st Dec. Along with the cheques he also sent us a letter stating that our services are terminated due to "ongoing problem and collective failures from the team to perform". Since 8th Dec. company has been giving no reasons but delaying our cheques stating that there is no cash, please do not deposit the cheque.

After waiting for few days, I finally deposited all three cheques on 31st Dec, and as it was expected all three cheques bounced but the reason given by the bank was " payment stopped by the drawer".

Please guide me what should I do?

In this issue, is there a case against him under NI Act section 138?

What is the procedure of filing a case.....and can the case be filed in consumer court?

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