NIRMA UNIVERSITY
INSTITUTE OF LAW
A PROJECT SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE FIVE YEARS
INTEGRATED DEGREE OF LAW HONOURS
ON
Alternative dispute resolution under Section 89 of CPC- A critical analysis
COURSE: B.Com. LL.B. (HONS)
SEMESTER-VIII
Jan 2015 - April 2015
Submitted to
Sir, Rohit Moonka
Asst. Prof.
Nirma University
Submitted by
Aarohi Ojha
11bbl078
Alternative dispute resolution under Section 89 of CPC- A critical analysis
The hon’ble Supreme Court in case of Afcons Infrastructure Ltd. Vs. Cherian Varkey
Construction Co. (P) Ltd. conferred that the provisions of Section 89 of the Code of Civil
Procedure, 1908 which says that it’s a duty of the court to encourage parties in dispute for
settlement by means of alternate dispute resolution. The court has also laid down the guidelines
for courts while examining the said provisions to follow for the effective implementation of the
provisions of section 89 of the code of civil procedure.
Section 89 says that When it appears to the court that there is some possibility of settlement by
mutual acceptance of the parties them the court forms the terms of settlement and give them to
parties for theirs observation and comes to a possible settlement and refers the same for either (a)
arbitration or; (b) conciliation or; (c) judicial settlement including settlement through Lok
Adalat; or (d) mediation.
Where a dispute has been referred
(a) For arbitration or conciliation, the provisions of the Arbitration and Conciliation Act, 1996
(26 of 1996) applies.
(b) 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).
(c) 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)
(d) For mediation, the Court shall affect a compromise between the parties and shall follow such
procedure as may be prescribed.
In the paper there are two questions that are answered :
1. What is the procedure to be followed by a court in implementing section 89 and
Order 10 Rule 1A of the Code?
2. Whether consent of all parties to the suit is necessary for reference to arbitration
under section 89 of the Code?
These questions would be answered briefly with case laws related and there critical analysis.
Key words
Arbitration
Mediation
Conciliation