Alternative Dispute Resolution under CPC, 1908- Our Legal World

Alternative Dispute Resolution under CPC, 1908


Alternative Dispute Resolution refers to a spread of strategies for resolving disputes with the aid of way apart from litigation. ADR System seeks to offer cheap, easy, short and accessible justice. The item at the back of this provision is to avoid multiplicity of litigation, keep valuable time, money and permit parties to amicably come to a settlement that is lawful, is in writing and is a voluntary act on the a part of the events. Further, to lessen burden of the courtroom. The popular principle is that each one subjects, which may be settled in a fit, also can be settled with the aid of compromise.

The Act of 1999 has delivered a brand new provision, phase 89 in which the court docket may additionally by means of itself, proactively refer a dispute for ADR methods consisting of Arbitration, Mediation, Conciliation and judicial agreement via Lok Adalat if it seems that elements of agreement, which can be proper to the events to the dispute. This paper is intended to give an overview of procedural elements as contained in Civil Procedure Code in addition to of the unique techniques of Alternative Dispute Resolution with unique reference to the judgement of the Hon’ble Supreme Court within the case of Afcons Infrastructure Limited and Another vs. Cherian Varkey Construction Company pvt. Ltd. & ors. 2010 by in short overviewing the history of the segment, the tips of numerous regulation commissions with appreciate to the same, the relation of the phase with other statutes of India and the placement of the provision as it stands today. This paper tries to express the categories of instances which can be ideal for ADR methods and the cases which are not suitable for ADR processes. Then the point of interest shifts on analysing the situations, advantages and weak spot of ADR. This paper ends by offering some pointers for solving the problems worried with Alternative Dispute Resolution.

Section 89 of the Code of Civil Procedure, which gives the Court the energy to refer the dispute for settlement or conciliation become brought with a cause of an amicable, peaceful and mutual agreement between parties without the intervention of the court. However, the issue is that even after extra than a decade of its implementation, the supply furnished for ADR beneath Section 89 suffers from many anomalies. The constitutional validity of this segment changed into upheld but the frequency with which ADR is utilized for resolution of disputes stays minute, which arises due to lack of understanding approximately the same or because of the reluctance of the parties. The Law Commission in its 129th Report encouraged the need for amicable settlement of disputes between events and the Malimath Committee recommended to make it mandatory for courts to refer disputes, after their troubles having been framed with the aid of courts, for resolution through change means in place of litigation/trials. The trade boards accorded underneath Section 89 are economically greater feasible as there are quite lesser amount of transaction fees and consequently, there may be a need to make human beings privy to the same. However, the writer believes that the provision below Section 89 is right in its essence, but its cause is defeated due to prison intricacies, draftsmen’s errors and lack of information among people.


In every civilized society there are units of legal guidelines that govern the lives of residents– (i) great legal guidelines and (ii) procedural laws. While the great legal guidelines determine the rights and duties of citizens, procedural legal guidelines provide for the framework for enforcement of the same. Despite the fact that noticeable legal guidelines are comparatively extra essential, but the efficacy of important legal guidelines in contingent upon the qualitative deliverance of procedural laws. The latter desires to be green, simple, expeditious and inexpensive, lest the substantial provisions fail in success in their cause and object.


Over the years some of amendments had been surpassed to make certain the Code is extra green and justice oriented but nonetheless a judicial lag exists in India. The range of instances preserve on rising every day while the adjudicators are limited. In mild of the same, a provision is provided underneath Section 89 of the Code which calls for agreement of disputes out of doors courts. The lengthy drawn nature of litigation which paradoxically subverts the ends of justice because of postpone makes it feasible for events to motel to exchange dispute decision could certainly reduce delays and the restrictions of the conventional gadget, consisting of constrained range of judges, the voluminous range of cases etc. The provision below Section 89 is a try to result in the decision of disputes between parties, decrease charges and reduce the burden of the courts. It is provided for with the sole objective of mixing judicial and non-judicial dispute resolution mechanism and bringing trade dispute mechanism to the centre of the Indian Judicial System.


Section 89 of the Code of Civil system was introduced with a reason of amicable, peaceful and mutual settlement between parties without intervention of the court docket. In international locations all the international, in particular the advanced few, maximum of the cases (over ninety in step with cent) are settled out of court docket. The case/ dispute among parties shall go to trial handiest while there may be a failure to attain a decision.
Advantages of the Alternative means of Dispute Redressal

1. The alternative means of dispute redressal may be invoked at any time, despite the fact that the problem is pending inside the Court of Law. Similarly, it is able to be terminated at any time besides in case of compulsory arbitration.

2. The disputes may be resolved comparatively greater economically and swiftly. Disputes may be maintained because the personal problem-count. Sometime disputes are resolved inside one or days’ time because the process adopted by way of the mediator is managed and consented via the events. Thus, actual answer of the dispute may be arrived at through the gadget of opportunity method of dispute redressal.

3. The system of opportunity means of dispute redressal can be observed without in search of legal assistance from the advocates-lawyers.

4. This device efficaciously reduces the workload of the court docket

5. Finally, this gadget gives bendy procedure, strict process of law isn’t always relevant to opportunity way of disputes redressal.

Undoubtedly, the existing international is undergoing a type of revolution, now not simplest in the area of communique and statistics era however also in the field of alternate and trade. Even the home in addition to worldwide change and commerce aren’t untouched within the prevailing situation. It has been realized that the law of arbitration calls for to be advanced, promoted and additionally implemented so that the everyday Court of law which is already over-harassed attributable to complexities and disputes in each stroll of life is reduced with judicial burden.

Need for Alternative Dispute Resolution :
  1. Mounting arrears of subjects before Court system
  2. Expedite settlement

The Code of Civil Procedure brought certain provisions giving the electricity to courts to settle the topics out aspect the Court. Section 89 offers for the agreement of disputes outsides the Court. The provisions of this phase are primarily based on the pointers made through Law Commission of India and Malimath Committee. It turned into advised with the aid of Law Commission of India that the Court can also require attendance of any party to the healthy or court cases to appear in character on the way to arriving at an amicable settlement of dispute among the events and make an try and settle the dispute between the events amicably.

Malimath Committee advocated to make it compulsory for the Court to refer the dispute, after problems are framed, for agreement either by using way of arbitration, conciliation, mediation, judicial agreement or thru Lok Adalat. It is simplest when the parties fail to get their disputes settled through any of the alternative dispute decision method that the in shape ought to continue further. In view of the above, with the aid of Amendment of 1999 a new section 89 has been inserted in order to offer for alternative resolution.

The object of Section 89 appears to sell alternative methods of dispute resolution which may not be sure by means of any particular process and similarly resolves the dispute expeditiously.According to the declaration of Object and Reasons appended to the Bill (Amendment Act 1999) “this is a unique provision made for agreement of disputes out of doors the courts”. A litigant is free to settle his dispute on a reference made by way of the court with the aid of resorting to any of the subsequent strategies:

  1. Arbitration
  2. Conciliation
  3. Judicial Settlement together with agreement via Lok Adalat, or
  4. Mediation.

Section further affords that in which the dispute is stated arbitration or conciliation, the provisions of Arbitration and Conciliation Act, 1996 might observe; wherein stated Lok Adalat, the applicable provisions of Legal Services Authority Act, 1987 could apply. In case it’s far noted mediation, the Court shall have an effect on a compromise between the parties and shall comply with such procedure as may be prescribed. It is, however no longer clean from the provisions of Section 89 that whether the reference by means of the courtroom to the alternative method of dispute decision mechanism is obligatory or listing. It additionally now not set out the stage for one of these references.

The provisions embodied underneath Section 89 do no longer suffer from any constitutional illness. Order X of Civil Procedure Code: The provisions of O.X confer on the courtroom a power to have a look at parties on the way to confirm the actual points in the controversy among them, and to get admissions from them, with a view to put off beside the point issues and proof and thereby shorten the trial. This rule relates only the ascertainment by statements of the parties themselves or their pleaders whether allegations in the pleadings which had been admitted or denied with the aid of them. Such ascertainment is to be made while the allegations or not expressly or impliedly admitted or denied through the celebration against whom they may be made. The rule used the expression “first listening to”. What does this expression suggest? The expression has no longer been described within the Code. It is the day on which the courtroom purposes to use its mind to determine the points inside the controversy among the events to the fit and to frame the issues if necessary. It is the day the court docket implemented its mind and goes into the pleadings of the events with a purpose to understand their contentions. After recording the admissions and denials the Court shall direct the parties to settle the matter out of courtroom and adopt the modes embodied in Section 89 of the Code, this is arbitration, conciliation, mediation or Lok Adalat.

The item of the exam beneath this rule is to ascertain the topics in dispute and no longer to take evidence or to ascertain what’s to be the evidence in the case. Rule 2 has been substituted to make it compulsory at a part of the courtroom to have a look at the party acting in man or woman or present in the Court for elucidating the matters within the controversy. At the primary hearing of the match the Court can study a party or his witness, orally to be able to elucidate the subjects inside the controversy. Where the birthday party’s pleader refuses or is unable to reply fabric questions the Court can direct non-public attendance of the celebration himself. If the birthday celebration fails without lawful excuse to appear at the appointed date, the Court may pronounce judgment against him or make such orders as it thinks in shape. The intention of this rule is to enable the Court not best to get obscure points cleared up with the aid of obtaining facts from either of the events, however also if viable, to get admission so that it will slim down the issue.
Civil Procedure Alternative Dispute Resolution and Civil Procedure Mediation Rules, 2005

1. The Court shall after recording admission and denials at the primary listening to of the Suit below Rule 1 of Order X and in which it seems to the Court that there exists elements of a agreement and provide them to the parties, formulate the phrases of settlement and provide them to the parties for their observations beneath sub-segment (1) of Section 89, and the parties shall post to the Court their responses within thirty days of the first listening to.

2. The Court shall supply steering to events at the same time as giving route to choose ADR, its advantages, courting among the parties which calls for to be preserved.

3. If the fit has been referred for any of the mode noted in Section 89 and has no longer been settled or now not be right in the hobbies of justice to proceed further with the problem, the suit will be referred back once more to the Court with a path to the parties to seem before the Court on a specific date.

4. The High Court shall take steps to have training publications conducted in places where the High Court and the District Courts or Courts of identical repute are located, by means of inquiring for our bodies identified by the High Court or the Universities presenting criminal education or retired Faculty Members or other people who, consistent with the High Court are nicely versed in the strategies of opportunity strategies of decision of dispute, to conduct schooling guides for lawyers and judicial officers.

5. The High Court and the District Courts shall periodically conduct seminars and workshops on the subject of alternative dispute resolution strategies at some stage in the State or States over which the High Court has jurisdiction so that it will deliver the notice of such techniques and to impart schooling to lawyers and judicial officers.

6. The parties to a healthy may all agree at the name of the only mediator for mediating between them and wherein there are two units of parties and are unable to agree on a sole mediator, every set of events shall nominate a mediator.

7. The following humans shall be handled as certified and eligible for being enlisted inside the panel of mediators: –

(a) Retired Judges of the Supreme Court of India, Retired Judges of the High Court, Retired Judges and Sessions Judges or retired Judges of the City Civil Court or Courts of equivalent popularity.
(b) Legal Practitioners with at least fifteen years standing at the Bar at the extent of the Supreme Court or the High Court or the District Courts or Courts of equal popularity.
(c) Experts or different professionals with at rent fifteen years status or retired senior bureaucrats or retired senior executives.

(d) Institutions which are themselves specialists in mediation and have been recognized as such by means of the High Court, furnished the names of its contributors are permitted by means of the High Court first of all or each time there’s exchange in membership.

7. The venue for undertaking mediation is at any area basing on the consent of the parties.

8. On the expiry of sixty days from the date constant for the primary look of the parties earlier than mediator, the mediation shall stand terminated, until the Court, which referred the problem, either suo-motu, or upon request through the mediator or any of the events, and upon hearing all of the parties, is of the view that extension of time is essential or may be useful; but such extension shall now not be past similarly period of thirty days.

9. The Court to fix a date for recording settlement within seven days of the receipt of any agreement, the Court shall difficulty note to the parties fixing a day for recording the agreement, such date no longer being past a further period of fourteen days from the date of receipt of settlement, and the Court shall report the agreement, if it isn’t always collusive.

10. At the time of referring the disputes to mediation, the Court shall, after consulting the mediator and events, restoration the rate of the mediator.

11. The mediator shall follow sure ethics:

  1. no longer keep on any hobby or conduct which can fairly be considered as behaviour unbecoming of a mediator.
  2. uphold the integrity and fairness of the mediation process.
  3. Be faithful to the connection of consider and confidentiality imposed within the workplace of mediator.
  4. Disclose any hobby or dating likely to have an effect on impartiality or which might supply an appearance of partiality of bias.
  5. Conduct all proceedings associated with the resolutions of a dispute, according with the applicable regulation.

Case Laws

1. Afcons Infrastructure Ltd. v. Cherian Varkey Consturction Co. (P) Ltd.
Arbitration was referred to as a means of ADR is undertaken on account a prior agreement between parties to resolve disputes by arbitration or by filing an application/joint memo before the court, the latter occurs in the case of no arbitration agreement beforehand. The award of the Arbitrator, the presiding officer, is binding as a decree of the court or any settlement arrived at by parties during arbitration proceedings shall also have the same effect.

2. Supreme Court in Salem Advocate Bar Association, Tamil Nadu vs. Union of India
It was of the view that there were some “creases” in Section 89, but it did not refer to anomalies. It felt that the creases could be ironed out by formulating appropriate rules and regulations to implement the section. In his article, the Hon’ble Justice puts forward some additional anomalies associated with Section 89.

Also Read: Rights and Liabilities of a Trade Union under TU Act 1926: Our Legal World


To achieve the inner peace of mind, the events should try and settle the matter in an amicable manner which leads to robust concord and ends in efficacious results. Section 89 is a crucial part of the Code of Civil Procedure and is a powerful approach to clear up dispute between events in which there may be scope for the same. The section is proper in its spirit because the goal has been to reduce the weight of the courtroom, ensure a compromise is arrived at among events and flow in the direction of speedier/ powerful method of administrating justice. Alternate Dispute Resolution is a method of increasing get entry to justice without reducing the great of justice.

However, as has been highlighted inside the entire paper, the Section suffers from many anomalies, which have reduced its performance and act as a trouble in delivering justice to the humans. The pointers of the 238th Law Commission record strike at the heart of the problem and there’s a need for amendments certain through the Report. Apart from the legal issue of the inefficiency of the availability, every other major motive for segment failing to fulfil its reason is the shortage of felony knowledge the various human beings. Rather than going for Alternate way which are a great deal cheaper and less time eating, residents maintain to head for trial hoping to relax a bigger award from the Court. The alternate boards accorded below Section 89 are economically extra feasible as there are highly lesser amount of transaction fees and hence, there’s a need to make human beings aware about the equal. Hence, the availability beneath Section 89 is right in its essence but its cause is defeated due to prison intricacies, draftsmen’s mistakes and lack of awareness amongst people.



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