Sources said the parties have sought settlement under the provisions of The Places of Worship Act, 1991 which provides that no dispute with regard to any mosque or other religious places, which have been constructed after demolition of temples and are existing as in 1947, would be raised in a court of law.
The arguments in the matter were the second longest after the landmark Keshvanand Bharti case in 1973 during which the proceedings for propounding the doctrine of basic structure of the Constitution continued for 68 days.
The litigants and their counsels -- altogether over 50 people -- met the three-member mediation panel on the Avadh University premises in Faizabad.
The lawyers said the mediation panel's report was leaked to the media and they do not approve the procedures adopted in the process and the suggested compromise formula of withdrawal of the lawsuit.