Friday, 26 July 2013


Showing the contexts in which section 89- cpc appears in the document
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Heard learned counsel for the parties and perused the paper book. 6. Various orders in CPCprovide for procedure in detail for conduct of trial in a suit after the parties have appeared and filed written Civil Revision No. 3188 of 2010 [3] statement. Before framing of issues, which is provided for under Order 14 CPC, to shorten the dispute between the parties, various provisions have been laid down. 7. Before appreciating the contentions raised by learned counsel for the parties, a reference to Section 89 and Order X CPC is required. The same are reproduced hereunder: "Section 89 CPC 89. Settlement of disputes outside the Court.- (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; (c) judicial settlement including settlement through Lok Adalat; or (d) mediation. (2) Where a dispute has been referred-- (a) for Arbitration or conciliation, the provisions of the Arbitration
shall fix the date of appearance before such forum or authority, as may be opted. 9. Section 89(1)CPC provides that where it appears to the court that there exist element 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 re-formulate the terms of a possible settlement and refer the same for (a) arbitration; (b) conciliation; (c) judicial settlement including settlement through Lok Adalat; or (d) mediation. 10. Where a dispute is referred to any of the forum/authority under Order 10 Rule 1-A CPC, the parties are to appear before such forum or authority. Rule 1-C of Order 10 CPC provides that on failure of efforts of conciliation, the matter shall be referred back to the Court. 11. Rule 1-A, B and C were inserted in Order 10 CPC by the Code of Civil Procedure (Amendment) Act, 1999 w.e.f. 1.7.2002 with the insertion of Section 89 CPC. Earlier Section 89 was repealed by the Arbitration Act, 1940. The Objects and Reasons appended
Bill seeking insertion of Section 89 CPC are extracted below: "Amendments: Objects and Reasons- Clause 7 provides for the settlement of disputes outside the Court. The provisions of clause 7 are based on the recommendations made by Law Civil Revision No. 3188 of 2010 [7] Commission of India and Malimath Committee. It was suggested by Law Commission of India that the Court may require attendance of any party to the suit or proceedings to appear in person with a view to arriving at an amicable settlement of dispute between the parties and make an attempt to settle the dispute between the parties amicably. Malimath Committee recommended to make it obligatory for the Court to refer the dispute, after issues are framed, for settlement either by way of arbitration, conciliation, mediation, judicial settlement or through Lok Adalat. It is only when the parties fail to get their disputes settled through any of the alternative disputes resolution method that the suit could proceed further. In view of the above, clause 7 seeks to insert a new Section 89in the Code in order to provide for alternative dispute resolution. [Statement of Objects and Reasons (Bill 1999).]" 12. The object of newly added

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