In the Code of Civil Procedure, 1908 (5 of 1908),—
(i) under Part V, under the heading SPECIAL PROCEEDINGS, the sub-heading “ARBITRATION”
shall be omitted;
(ii) for section 89, the following section shall be substituted, namely:—
89. Settlement of disputes outside the Court.—Where it appears to the Court that the dispute
between the parties may be settled and there exists elements of settlement which may be acceptable
to the parties, the Court may—
(a) refer the dispute to arbitration, and thereafter, the provisions of the Arbitration and
Conciliation Act, 1996 (26 of 1996) shall apply as if the proceedings for arbitration were
referred for settlement under the provisions of that Act; or
(b) refer the parties to mediation, to the court-annexed mediation centre or any other
mediation service provider or any mediator, as per the option of the parties, and thereafter the
provisions of the Mediation Act, 2023 shall apply as if the proceedings for mediation were
referred for settlement under the provisions of that Act; or
(c) refer the dispute to Lok Adalat, in accordance with the provisions of sub-section (1) of
section 20 of the Legal Services Authorities Act, 1987 (39 of 1987) and thereafter, all other
provisions of that Act shall apply in respect of the dispute;
(d) effect compromise between the parties and shall follow such procedure as deemed fit for
judicial settlement.