Recently, the peer-to-peer (P2P) distributed technology has become associ- ated with many things, ranging from file sharing, software applications to network technologies. A fundamental problem common to P2P applications is that of an efficient and scalable lookup service to locate or discover the peers that store (or share) a particular resource. Some design criteria for such an indexing and discovery infrastructure are: fast search, secured index and scalable to work in large networks. This project addresses the issue of collision in DGRID (DHT-based Grid Re- source Indexing and Discovery), a Chord-based hierarchical peer-to-peer system with secured index that is designed for grid systems. Collision occurs when P2P operations cause more than one node to be created in the first-level overlay network and thus increases the lookup path length. We propose new collision avoidance algo- rithms for the join and leave operations. For node failures, our proposed algorithm avoids collision in the case of a leaf node. Collision avoidance due to supernode failures remains an open issue. Simulation results confirm that collisions can be avoided and our algorithms improve the overall lookup performance significantly.