Section 89 of the Code of Civil Procedure, 1908 (“the CPC”), inserted by CPC (Amendment) Act 1999, and brought into effect on 1st July, 2002, is an attempt to blend the judicial and non-judicial dispute resolution mechanism in order to envisage the equal rights of every person in the eyes of law. Section 89 of the CPC was amended to bring the alternative dispute resolution mechanism into main stream of the judicial system. The amendment in Section 89 was made on the recommendation of the Law Commission of India and the Justice Malimath Committee. It was recommended by the Law Commission that the court may require attendance of parties to the suit or proceeding to appear in person with a view to arrive at an amicable settlement of the dispute between them and make an attempt to settle the dispute amicably. Justice Malimath Committee recommended making it obligatory for the court to refer the dispute, after issues are framed, for settlement either by way of arbitration, conciliation, mediation or judicial settlement through Lok Adalat. It is only when the parties fail to get their disputes settled through any of the alternative dispute resolution methods that the suit could proceed further. Thus section 89 has been introduced to promote alternative methods of dispute resolution.
Section 89, C.P.C. embraces the provision for settlement of dispute outside the court. All the cases which are filed in court need not necessarily be decided by the court itself. Keeping in mind the laws delay and the limited number of Judges which are available, it has now become imperative to resort to Alternative Dispute Resolution Mechanism with a view to end litigation between the parties at an early date. The Alternative Dispute Resolution (ADR) mechanism as contemplated by Section 89 is arbitration or conciliation or judicial settlement including settlement through Lok Adalat or Mediation.
Apart from parties referring disputes to