Can Parties avail peaceful and quick settlement, after bringing the matter to the Court?(CPC and ADR Part II)

The Settlement Table
4 min readFeb 16, 2021

*Vennila Thambidurai

Section 89 of the Civil Procedure Code allows resolution of disputes between parties outside the court. On recording of the admissions and denials, the Court shall direct the parties to the suit to adopt either of the medium specified in Section 89 and on the option of the parties, the court shall also fix the date of appearance before the relevant forum on which date, the parties shall appear before the said forum. The forum shall satisfy itself that it is proper in the interest of justice to proceed with the matter. Upon satisfaction, the matter shall be referred back to the Court and direct the parties to appear before the Court on a fixed date.


· A Valid Written Arbitration Agreement entered between the parties before the dispute has arisen shall be a sine quo non. In specific, the disputed contract should either contain an arbitration clause or must refer to separate agreement.

Note- Written correspondence such as letters, telex or telegrams is also considered to be an arbitration agreement and an exchange of statement that makes a claim by one party that there is existence of an arbitration clause and which is not denied by the other also makes it a valid agreement.

· Such Agreement / Contract must be signed by both the parties.

· Judicial intervention into arbitration process is generally very minimal.

· Either party may appoint the arbitrator. Where the parties do not reach a consensus as to the arbitrator, in such cases the arbitrator may be appointed by the High Court on the request of either party.

· Grounds for challenging appointment of arbitrator :

a. Reasonable doubt that the arbitrator is partial.

b. Qualification of the arbitrator is not fulfilled as per the agreement / clause.

· The so appointed sole arbitrator or the panel constitutes the Arbitration Tribunal. The Tribunal is competent to look into the question of jurisdiction.

· An award by such Tribunal can be challenged as per Section 34 of Arbitration and Conciliation Act. Where:-

(1) the challenge to set aside the award is rejected by the Court, or

(2) the time given to file an appeal under the section expires,

the Award of the Tribunal becomes binding on the parties and shall be enforceable as a decree of the court.


· Informal and flexible method when compared to arbitration

· One party approaches the other party to solve the dispute through Conciliation — acceptance or consent of both parties is the corner-stone of conciliation.

· Both the parties with mutual consent shall appoint the conciliator. If there are multiple conciliators appointed, they shall act jointly.

· Statements may be submitted by the parties to the Conciliator and a copy of such statements is also served among the parties.

· Conciliator communicates with the parties either orally or in a written format.

· If the Conciliator thinks that settlement is possible between the parties then he/she shall draft the terms of settlement. The terms of Settlement are finalized if both the parties agree to the terms and signs the agreement.

· On signing of the document it becomes binding on both the parties.


· It is a structured, voluntary and interactive negotiation process in which the disputed parties appoint a neutral and impartial person as mediator who assists the parties in resolving the disputes.

· In this process the parties themselves determine the conditions of the settlement rather than accepting to the conditions imposed by a third party.

· Mediators use their skills & techniques to improve the terms of settlement between disputants aiding the parties reach an agreement with concrete effect.

· Mediation is possible in a variety of disputes such as commercial, legal, family matter, workplace matters, etc.

Judicial Settlement:

· It is an Indian approach where by mock courts called Lok Adalats is held by State Authority, District Authority, Supreme Court Legal Services Committee, High Court Legal Services Committee or Taluk Legal Services Committee.

· Lok Adalat translates to “People’s Court”. This process is based on

Gandhian Principles.

· Lok Adalat proceedings are considered to be judicial proceedings.

· Lok Adalats do not have jurisdiction over non compoundable offences.

· These Lok Adalats are usually presided by Retired Judges, Social Activists, or members of legal profession. Parties can directly interact with the Judges unlike the regular courts.

· In this process there are no court fees or rigid procedural requirement which results in a speedy process.

· Cases may be transferred to Lok Adalats:-

(1) where both the parties agree, and

(2) where one party applies to the court and the court is of the opinion that there exists a possibility for settlement. An opportunity is given to the other party to be heard and later the case is transferred.

· When compromise is not reached, the case goes back to Regular Civil Court for proceedings and if such compromise is reached then an award is made and it is binding on the parties and the order is capable of being executed through legal process.

· No Appeal lies against the order of the Lok Adalat.

ADR Mechanisms have always been fruitful in resolving disputes in time bound and cost effective manner. The growing world of technology has paved the way for resolution of disputes through online (‘ODR’- Online Dispute Resolution), which is still more time-saving, cost- effective as well as ensures accessibility of justice.

‘The Settlement Table’ offers a wide variety of services to resolve your disputes online with the help of the Expert Panel. To know more about how to resolve your legal disputes online, book a free appointment by, signing up in or writing to



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