problems from neighbours

We have been having problems from our neighbours who are also our relatives since long...but last week it reached criminal tresspassing, intimidation and assault...my neighbour(male) entered our kitchen and harassed and intimidated my mother and when i asked him to get out (rather rudely) he pushed me...i am a lady...he laid hands on me for asking him to get out of the house because he was shouting and threatening my mother...we made a complaint to the police...our only request to the police was we want peace and protection from criminal offence by our neighbours and that any family issue should be settled by a mediator or through legal proceeding not through harrasment...tomorrow the police has called us for a joint discussion... We have been nris for last 40 years..these relatives have been creating so many problems to get money out of us because we are not in a position to sue them...but this time they crossed limits....however still being in nri status we do not want court proceedings... I want to know if the police is empowered to create a peace bond between us...which law in india deals with peaceful out of court settlements between neighbours?