Section 89 in The Code of Civil Procedure, Svt. 1977 (1920 A.D.)
89. [ Settlement of disputes outside the Court. [Inserted by Act VI of 2009, dated 20.3.2009 as it was earlier repealed by Act No. II of 2002.]
(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)Where a dispute has been referred -(a)for arbitration or conciliation, the provisions of the Jammu and Kashmir Arbitration and Conciliation Act, 1997 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 19 of the Jammu and Kashmir Legal Services Authority Act, 1997 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 Jammu and Kashmir Legal Services Authority Act, 1997 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 by the High Court.(3)Notwithstanding anything contained in the Court Fees Act, Samvat, 1977, where the Court refers the parties to the suit to any one of the mode of settlement of dispute in this section, the plaintiff shall be entitled to a certificate from the Court authorizing him to receive back from the collector, the full amount of the fee paid in respect of such plaint.] [Inserted by Act No. X of 1960.]Special Case
