Can I file mental harassment against sister in law?

My elder brother and his wife have been married for 5 years and have been living seperately since past 2 years. His wife and my sister in law created hurricanes in our house since she came after marriage on small pity matters that are laughable. We tolerated to the highest limit but then my brother decided to move out as he didnt want the family to suffer due to his decision. Now his wife has filed a false domestic violence case against us (family) and divorce case against my brother in a different city which is about 300 kms away from my and my family's current city. Question is can I file a case of mental harassment against her for causing mental upset to me and my parents by sending court letters to us stating falsely that she has been a victim of DV in my house. Also, they filed a case in a city 300 kms from here so why should we travel so far for each hearing date? Is there a way both parties can settle this case at a mutual location that is between both cities in interest?