Why Courts tell the litigants that it will take too much time if they pursue their cases and ask people to settle the case outside

I had a consumer court case relating to Air Conditioner.

After almost 3 years and after I had completed the pleadings long back and I had argued my case as well, I was asked to compromise the case as it will take a long time to give judgement.

Is the courts justified in giving dates always?

In one arbitration case - wherein the party to case had legally appointed an arbitrator as per agreement - he was asked to agree to appointment of arbitrator by the other party.

Since it was legally appointed - it was requested that the court may pass an order based on the merits of the case.

But we were given date.

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