Lent money to friend he refusing to give it back

The claim for repayment of the loan amount is barred by limitation.

You should have taken action within three years for recovery of the same.

However you issue a legal demand notice to the borrower and if he acknowledges  the loan then the fresh limitation will start from the date of his acknowledgment  

Since you did not initiate any legal action to recover the loan amount within three years from date of lent so now it has become time barred and can' not be  recovered  legally. 

The cheque issued is stated to be a "Cancelled" and not a proper drawn cheque, which is very much a waste paper.

Besides this, it is stated to have been dated back to August 2020 i.e., time barred, if it was a proper cheque drawn in your favour.

However, you may file a police complaint for cheating and fraud committed upon you.

Forget the cheque and settle the matter amicably. 

But he didn't mention any date in cheque and mentioned only amount .

The cancelled cheque prima facie is not an evidence for lending the amount, it is just a piece of evidence to prove that the person is having an account in the bank, hence it cannot be considered as an evidence for having advcaned the lona amount.

Your loan is badly barred by limitation, hence you may first issue a legal demand notice to the borrower stating that he had borrowed the said amount and demand him to return the same immediately, if he acknowledges the same, then the limitation will start from that date. 

Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.

Such loan is taken by a person:-

Who lacks business sence and cannot raise funds out of his own business and suddenly wants to be rich.

who cannot raise bank loan because :-

Either

he himself is not creditworthy

Or

 the purpose for which he seeks loan is illegal

or

the purpose for which he seeks loan is not at all commercially viable.

 Who knows he can afford not to refund.
Who trusts his thick skin
Who intends not to refund
Who has made fortification against action of refund.

So he has to find someone who can part with his money. SO he finds a lender near him (friend or relative)

Such loans are given by the persons :-

Who has surplus money.
Who displays and boasts of such surplus money.
Who stupidly believe that there will be a refund.
Fails to realise as to why he alone (not bank) is being contacted for loan.
Who has extreme trust on the debtor
who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.

Such loans are always given

Without documentation.
Without witness
Without guarantor.

Business started by such money  (easy money belonging to other) invariably fails.

Such loans always sink and not refunded.