Section 89(1) in The Code of Civil Procedure, 1908
(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.
