- This has been provided under S.89 of the Code which was introduced by the amendment of 1999 based on the recommendations of the Law Commission and the Malimath Committee.
- The main object behind this provision is to provide for alternate methods of dispute resolution.
- S.89 states that where the court is of the opinion that there exist certain elements of settlement between the parties, which are acceptable to the parties, the court shall formulate terms of settlement based on the same and send them to the parties for their observations.
- After receiving such observations, the court shall reformulate these terms of settlement and refer the same for arbitration, conciliation, judicial settlement including through Lok Adalat and mediation.
- With respect to arbitration and conciliation, the provisions of the Arbitration and Conciliation Act shall apply.
- With respect to Lok Adalats, the court shall refer the matter to a Lok Adalat under the Legal Services Authority Act.
- With respect to mediation, the court shall strike a compromise between the parties and follow such other procedure as may be prescribed.
Submitted By –
(Editor @ Legal Bites)