he can file the suit for recovery of money but there are ways to defend the suit. you need to explain all the facts and even the documents you furnished as security needs to be looked into.

If the assets created with loan money are in your hands, you may be responsible for repayment of the loan amount.

He may file suit for recovery. He may present the cheques for payment and if bounced, may fle complaint u/s 138 of NI Act.

If the loan was taken in personal capacity, you may not be held liable for payment, However, your stand may be concluded after having gone through documents in length and your status in the business for which loan was availed.