Alternate Dispute Resolution

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Code of Civil Procedure 1909

Alternate Dispute Resolution

Dr. Shivam Gaur


Assistant Professor
School of Law, Bennett University
Introduction

The pendency of cases in India is in lakhs. The root cause behind such growing pendency of cases is
the rise in the number of fresh suits filed every year which has surpassed the number of disposed of
suits
The proactive approach adopted by the Government included initiatives such as the establishment of
specialized courts, speeding up the process, an increase in the number of judges, etc. However, among
all the measures being taken, the amendment of Section 89 of the Code of Civil procedure 1908 was
the most significant
The provision under Section 89 is an attempt to bring about the resolution of disputes between parties,
minimize costs and reduce the burden of the courts. It is provided for with the sole objective of
blending judicial and non-judicial dispute resolution mechanism and bringing alternate dispute
mechanism to the center of the Indian Judicial System
Section-89: Settlement of dispute outside the court.

• 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 the 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-
• arbitration;
• conciliation;
• judicial settlement including settlement through Lok Adalat; or
• mediation.
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Where a dispute has been referred-
• for arbitration or conciliation, the provisions of 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;
• 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;
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• 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;
• for mediation, the Court shall effect a compromise between the parties and shall follow such
procedure as may be prescribed.
Rules for the purposes of Section 89 and Order X Rules 1A, 1B and 1C.

• These provisions read as under:


1. 1(A)Direction of the Court to opt for any one mode of alternative dispute resolution: After
recording the admissions and denials, the Court shall direct the parties to the suit to opt either
mode of the settlement outside the Courts as specified in Sub-Section (1) of Section 89. On the
option of the parties, the Court shall fix the date of appearance before such forum or authority as
may be opted by the parties.
2. 1(B)Appearance before the conciliatory forum or authority: Where a suit is referred under Rule
1A, the parties shall appear before such forum or authority for conciliation of the suit.
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• 1(C)Appearance before the Court consequent to the failure of efforts of conciliation: Where a suit
is referred under Rule 1A and the presiding officer of conciliation forum or authority is satisfied
that it would not be proper in the interest of justice to proceed with the matter further, then, it shall
refer the matter again to the Court and direct the parties to appear before the Court on the date
fixed by it.
CASE LAWS:

Salem Advocate Bar Association v. Union of India

Afcons Infrastructure Ltd. v. Cherian Varkey Construction Co. (P) Ltd. & Ors.

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