I am relatively new to the physics engine but I can code quite a lot in it. I have observed a thing that is when you , push a physics object into a corner and try to squeeze it , it flys off which means its has a default elasticity set, can someone explain this behaviour.

Second i just wanted to know that does the engine support centripetal acceleration while turning of physical objects like cars etc

There is support for elasticity (phent_setelasticity) but depending on how you cornered the object it might have been something else. Regular A6 entities have infinite mass and friction, and if you squeeze a physics entity with a regular entity you effectively "crush" it. The result is that the physics entity will fly off at high speeds. Ideally physics entities should only be moved by forces or by other ph.entities.

Centripetal force is simulated.

Use the alternative that I stated: use forces (when the other objects get too close).