Introduction
India’s overburdened judiciary has necessitated the growth of Alternate Dispute Resolution (ADR) mechanisms to ensure speedy, effective, and affordable justice. Section 89 and Order X Rules 1A, 1B, and 1C of the Code of Civil Procedure, 1908 play a pivotal role in integrating ADR into the traditional legal framework, promoting amicable settlements and reducing the backlog of cases.
What is Section 89 of CPC?
Statutory Provision
Section 89 of the Civil Procedure Code empowers civil courts to refer disputes to ADR methods if there is an element of settlement that may be acceptable to the parties.
Section 89: “Where it appears to the court that there exists an 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. After receiving the response, the court may reformulate the terms and refer the matter to one of the following modes of ADR: Arbitration, Conciliation, Judicial Settlement, Lok Adalat, or Mediation.”
Objectives of Section 89
- Promote out-of-court settlement
- Provide faster dispute resolution
- Reduce judicial pendency
- Encourage parties’ autonomy in resolving disputes
- Lower litigation costs
Modes of ADR Under Section 89
- Arbitration
- Conciliation
- Judicial Settlement
- Lok Adalat
- Mediation
Each method has a different procedure but shares the goal of efficient, voluntary, and just resolution of disputes.
Order X Rules 1A, 1B, and 1C of CPC
These rules complement Section 89 by prescribing how courts should proceed with referring matters to ADR.
Order X Rule 1A: Direction of the Court to Opt for ADR
- After recording admissions and denials under Rule 1, the court directs the parties to choose one of the modes of ADR.
- Encourages judicial officers to take a proactive role in promoting ADR.
Order X Rule 1B: Appearance Before ADR Forum
- Once a mode is selected, the court orders parties to appear before the relevant ADR forum (e.g., Lok Adalat, mediator).
- Ensures structured participation in the ADR process.
Order X Rule 1C: Return to Court Upon ADR Failure
- If ADR fails, the matter is returned to the court, and regular trial proceedings continue.
- Protects parties’ rights to adjudication while still encouraging settlement.
Judicial Interpretation of Section 89 CPC
Salem Advocate Bar Association v. Union of India (2005)
This landmark case validated Section 89 as constitutional and emphasized the need for ADR rules and infrastructure. It also provided guidelines for proper implementation of Section 89.
Afcons Infrastructure Ltd. v. Cherian Varkey Construction (2010)
The Supreme Court clarified that certain disputes (like criminal or matrimonial offences) are not suitable for ADR under Section 89. The judgment helped streamline the application of Section 89 and Order X rules.
Importance of Section 89 and Order X Rules
| Aspect | Contribution to Justice System |
|---|---|
| Efficiency | Speeds up dispute resolution |
| Cost-Effectiveness | Reduces legal expenses |
| Flexibility | Offers party-friendly options |
| Judicial Relief | Helps courts manage backlog |
| Harmonious Solutions | Encourages win-win outcomes |
Benefits of Section 89 CPC
- Promotes settlement culture
- Enhances party satisfaction
- Reduces courtroom hostility
- Protects confidentiality
- Suitable for civil, commercial, and family matters
Challenges in Implementation
- Lack of awareness among litigants and lawyers
- Inadequate training of judges and mediators
- Infrastructure gaps in rural courts
- Delay in referral process and return to court
Memory Code Table to Remember
| Provision | Key Point | Mnemonic Tip |
|---|---|---|
| Section 89 | Referral to ADR when possible | “89 = ADR Align” |
| Order X Rule 1A | Court directs parties to select ADR mode | “1A = Ask to Choose” |
| Order X Rule 1B | Parties appear before ADR forum | “1B = Be Present in ADR” |
| Order X Rule 1C | Case returns to court if ADR fails | “1C = Come Back to Court” |