Section 89 CPC: Settlement of disputes outside the Court

Section 89: Settlement of disputes outside the Court

¹[(1) Where it appears to the Court that there exist elements of a settlement which may be acceptable to the parties, the Court shall formulate the terms of settlement and give them to the parties for their observations and after receiving the observations of the parties, the Court may reformulate the terms of a possible settlement and refer the same for:—

(a) arbitration;

(b) conciliation;

(d) mediation.

(2) Were a dispute has been referred—

(a)

for

arbitration

conciliation,

the

provisions

the

Arbitration

and

Conciliation Act, 1996 (26 of 1996) shall apply as if the proceedings for arbitration or conciliation were referred for settlement under the provisions of that Act;

(b) to Lok Adalat, the Court shall refer the same to the Lok Adalat in accordance with the provisions of sub-section (1) of section 20 of the Legal Services Authority Act, 1987 (39 of 1987) and all other provisions of that Act shall .apply in respect of the dispute so referred to the Lok Adalat;

(c) for judicial settlement, the Court shall refer the same to a suitable institution or person and such institution or person shall be deemed to be a Lok Adalat and all the provisions of the Legal Services Authority Act, 1987 (39 of 1987) shall apply as if the dispute were referred to a Lok Adalat under the provisions of that Act;

(d) for mediation, the Court shall effect a compromise between the parties and shall follow such procedure as may be prescribed.]

Footnotes in the official text

1.Ins. by Act 46 of 1999, s. 7 (w.e.f. 1-7-2002), Earlier rep by Act 10 of 1940, s. 49 or the Third Schedule.

Questions on this section

19 questions in 23 of our papers cite Section 89. Try these from the free papers:

1. Which of the following is NOT one of the modes to which a Court may refer a dispute under Section 89(1) of the CPC?
2. Under Section 16 of the Court-fees Act, 1870, inserted by the Code of Civil Procedure (Amendment) Act, 1999, where the court refers the parties to a suit to one of the modes of settlement in Section 89 CPC, the plaintiff is entitled to a certificate to receive back from the Collector:
3. Section 89 of the CPC provides for which mechanism?