divorce denied

Can one re-appeal  after the application got rejected , in the same court or   can it also be done in a different place?

on the same ground you can not pray again but on diffrent grounds you can pray again.

though panchyat divorce has no legal sanction but customary divorce among the adivasis (ST) having legal sanction under hindu marriage act.

In essence, he confirms that panchayat divorces are an integral part of the Indian matrimonial set-up:  it is his (author) own personal view. not based on law . law oppose it.

Is there any way out of this  as both parties want divorce by mutual consent .

Why is the Judiciary hell bent on making two persons live together when they do not want to live together ?

perhaps you misguided.

judiciary can not show any interest on this matter. only they can waste time in the name of  formality of the court. a carefull and intelligent approach can overcome this problem.