In such situations it is always difficult to decide which path is correct. The basic rule with regard to lying is that it is not permitted, but there are certain circumstances in which Islam permits lying to serve a greater purpose or to prevent harm.
One of these situations is when a person mediates between two disputing parties in order to reconcile between them, if reconciliation cannot be achieved in any other way. Um Kalthoom (may Allaah be pleased with her) reported that the Prophet (peace and blessings of Allaah be upon him) said: “He is not a liar who reconciles between people and conveys something good or says something good.” (Reported by al-Bukhaari,