You should have taken action to cancel the registered sale deed within three years of its registration for the reasons that the sale consideration amount has not been paid fully.
The dishonored cheques and fraudulently encashed cheques constitute the non payment of the full sale consideration amount.
It may perhaps be barred by limitation because it is over three years from the date of registration.
Even though you have approached court, but it is for some other purpose and not for cancellation of the sale deed.
The limitation of 3 years for instituting suit for cancellation of sale deed, as per Article -59 of the Limitation Act, will be reckoned from the date of knowledge of the execution of the sale deed.
Registered Sale Deed Cannot Be Cancelled over Non-payment of Part Payment After Period of Limitation is Over, Rules SC.
A bench of Justices L Nageswara Rao and Indu Malhotra was hearing an appeal filed against the order of the Gujarat High Court, which had affirmed the order of the trial court, allowing the application filed by defendants under Order VII Rule 11(d), CPC holding that the suit filed by the plaintiff was barred by limitation.
The report says, "The suit was for cancellation of the sale deed (which was executed more than five years ago) on the ground that the sale consideration fixed by the Collector, had not been paid in entirety by the defendant. The period of limitation for a suit seeking a relief of cancellation of sale deed is three years, which commences from the date when the right to sue first accrues."