Cancellation deed or confirmation deed

Party A buys &registers the property through a sale deed from party B &then after few years the party B's sister sells &registers(by producing the fake docs) the same property to Party C for which the party B has signed as witness. Party A files a criminal case against Party B &others involved in this and now the accused want to settle the matter outside the court by doing a cancellation deed of the sale between party B's sister and party C, so that the criminal case against them could be discharged by partyA. Now the question is that, whether wecan do the cancellation deed without the court's order is that a valid document if done between party's consent and without court's intervention? or can we do a Confirmation deed between the Party B's sister and the party C to the party A(saying the party A is the actual owner and Party B, her sisters and the party C does not have any rights over the property) how can we settle the matter outside the court without altering the title of party A