Settlement of disputes outside the Court
Section 89 of the Code of Civil Procedure, 1908 deals with settlement of disputes outside the Court. Where it appears to the Court that there exist elements 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 and after receiving the observations of the parties, the Court may reformulate the ter The Act came into force on 01 Jan 1909.
1[89. Settlement of disputes outisde the Court.--(1) Where it appears to the Court that there exist elements 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 and after receiving the observations of the parties, the Court may reformulate the terms of a possible settlement and refer the same for:--
(a) arbitration;
(b) conciliation;
(c) judicial settlement including settlement through Lok Adalat: or
(d) mediation.
(2) Were a dispute has been referred--
(a) for arbitration or conciliation, the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply as if the proceedings for arbitration or conciliation were referred for settlement under the provisions of that Act;
(b) to Lok Adalat, 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) and all other provisions of that Act shall .apply in respect of the dispute so referred to the Lok Adalat;
(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) shall apply as if the dispute were referred to a Lok Adalat under the provisions of that Act;
(d) for mediation, the Court shall effect a compromise between the parties and shall follow such procedure as may be prescribed.]
Section 89, The Code of Civil Procedure, 1908 (Act 5 of 1908).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Salem Advocate Bar Association, T. Nadu v. Union of India
Court's Decision & Legal Precedent
In this later judgment in WP (C) 496/2002 the Court continued implementation of the 2002 CPC amendments, including case-management and section 89 ADR machinery (Justice Jagannadha Rao Committee follow-up). The 2005 judgment in the same petition ((2005) 6 SCC 344) had already upheld the amendments; this 2010 order is the operational follow-through on the same CNR.
On this section: 2010 follow-through in the Salem Advocate CPC-amendment docket on s.89 ADR machinery and case management.
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Afcons Infra. Ltd. vs Cherian Varkey Constn Co. P. LTD
Court's Decision & Legal Precedent
A civil court cannot refer a suit to arbitration under Section 89 of the Code of Civil Procedure unless all parties to the suit agree to such reference. Even though Section 89 mandates courts to refer pending suits to alternative dispute resolution processes, reference to arbitration specifically requires mutual consent of all parties, as arbitration is governed by the Arbitration and Conciliation Act, 1996 which contemplates the existence of an arbitration agreement. While non-adjudicatory ADR processes (Lok Adalat, mediation, judicial settlement) can be imposed by court discretion after identifying suitable cases, adjudicatory arbitration process cannot be imposed without party consent. The proper procedure requires courts to invoke Section 89 suo moto after completion of pleadings and before framing issues, consider whether the case falls under excluded categories, and only for suitable cases, explain the five ADR options to parties and ascertain their preferences, with arbitration and conciliation requiring mutual consent.
On this section: Core provision examined for scope of ADR reference authority; analyzed for defects in drafting and corrected through purposive interpretation to balance legislative intent with practical implementation
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United India Insurance Co. LTD vs Ajay Sinha
Court's Decision & Legal Precedent
When a dispute before the Permanent Lok Adalat involves the determination of whether a non-compoundable criminal offence has been committed, the Permanent Lok Adalat lacks jurisdiction to entertain such dispute, notwithstanding that the pecuniary value of the claim falls within its jurisdictional limit of Rs. 10 lakhs. The phrase 'relating to an offence' in the first proviso to Section 22-C(1) of the Legal Services Authorities Act, 1987 must be interpreted broadly to exclude cases where the resolution of the civil dispute depends on determining whether a non-compoundable offence has occurred.
On this section: Enacted to promote resolution of disputes through mutual settlement
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… to bring uniformity in the matter of refund of Court fees and to eliminate discrepancies so far as matters disposed of in view of the award passed by Lok Adalat , and such of those matters which are disposed of in terms of the settlement arrived at on the basis of observance of any of the modes prescribed under section 89 of the Code of Civil Procedure, a direction needs to be issued by the State of Maharashtra to take effective steps. Such a positive move will also give boost to the movement of Alternate Disputes Resolution, which, in fact, curtails precious time of the Court as well as avoids unnecessary and prolonged indulgence in …
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… The provisions of Section 89 of CPC must be understood in the backdrop of the longstanding proliferation of litigation in the civil courts, which has placed undue burden on the judicial system, forcing speedy justice to become a casualty. As the Law Commission has observed in its 238th Report on Amendment of Section 89 of the Code of Civil Procedure 1908 and Allied Provisions , Section 89 has now made it incumbent on civil courts to strive towards diverting civil disputes towards alternative dispute resolution processes, and encourage their settlement outside of court ( Para 2.3). These observations make the object and …
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… Hearing is concluded. The Judgment is reserved. (VISHAL ANAND) (RAJ RANI NEGI) COURT MASTER (SH) ASSISTANT REGISTRAR Books cited: (1) The Arbitration and Conciliation Act, 1996. (2) The Code of Civil Procedure,1908 – Section 89 and Order X Rule 1A of the said Code. …
Questions about Section 89
What have the courts held on Section 89 of the Code of Civil Procedure?
Salem Advocate Bar Association, T. Nadu v. Union of India (09 Aug 2010) is the leading judgment on this section among those set out below: 2010 follow-through in the Salem Advocate CPC-amendment docket on s.89 ADR machinery and case management. Another 2 judgments on this section are set out below, all of them from the Supreme Court. They run from 2008 to 2010.
How do I find court cases under Section 89 of the Code of Civil Procedure?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CPC 89, section 89 CPC, section 89 of the Code of Civil Procedure. People searching for it also type cpc 89a and cpc 89 1. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Salem Advocate Bar Association, T. Nadu v. Union of India (09 Aug 2010).
When did Section 89 of the Code of Civil Procedure come into force?
Section 89 of the Code of Civil Procedure, cited as CPC 89, came into force on 01 Jan 1909, having been enacted on 21 Mar 1908. It is in force as at the date shown on this page.
Other sections of this Act
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- 60. Property liable to attachment and sale in execution of decree1869 words
- 2. Definitions890 words
- 9. Courts to try all civil suits unless barred714 words
- 42. Powers of Court in executing transferred decree653 words
- 92. Public charities610 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.