5. Procedure for reference by the Court to the different modes of settlements.
- (i) Where all parties to the suit decide to exercise their option and to agree for settlement by arbitration, they shall apply to the Court, within thirty days of the direction of the Court under clause (b) of Rule 2 and the Court shall, within thirty days of the said application, refer the matter to arbitration and thereafter the provisions of the Arbitrations and Conciliation Act, 1996 (26 of 1996) which are applicable after the stage of making of the reference to arbitration under that Act, shall apply as if the proceedings were referred for settlement by way of arbitration under the provisions of that Act.(ii)Where all the parties to the suit decide to exercise their option and to agree for settlement by the Lok Adalat of where one of the parties applies for reference to Lok Adalat the procedure envisaged under the Legal Services Act, 1987 and in particular by Section 20 of that Act, shall apply.(iii)Where all the parties to the suit decide to exercise their option and to agree for judicial settlement, they shall apply to the Court within thirty days of the direction under clause (b) of Rule 2 and then the court shall, within thirty days of the application, refer the matter to a suitable institution or person and such institution or person shall be deemed to be a Lok Adalat and thereafter the provisions of the Legal Services Authority Act, 1987 (39 of 1987) which are applicable after the stage of making of the reference to Lok Adalat under that Act shall apply as if the proceedings were referred for settlement under the provisions of that Act.(iv)Where none of the parties are willing to agree to opt or agree to refer the dispute to arbitration, or Lok Adalat, or to judicial settlement, within thirty days of the direction of the Court under clause (b) of Rule 2, they shall consider if they could agree for reference to conciliation or mediation, within the same period.(v)(a)Where all the parties opt and agree for conciliation, they shall apply to the Court, within thirty days of the direction under clause (b) of Rule 2 and the Court shall, within thirtydays of the application refer the matter to conciliation and thereafter the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) which are applicable after the stage of making of the reference to conciliation under that Act, shall apply, as if the proceedings were referred for settlement by way of conciliation under the provisions of that Act.(b)Where all the parties opt and agree for mediation, they shall apply to the Court, within thirty days of the direction under clause (b) of Rule 2 and the Court shall, within thirty days of the application, refer the matter to mediation and then the Bihar Civil Procedure (Mediation) Rule, 2008 in part II shall apply.(vi)Where under clause (d) all the parties are not able to opt and agree for conciliation or mediation, one or more parties may apply to the Court within thirty days of the direction under clause (b) of Rule 2, seeking settlement through conciliation or mediation, as the case may be, and in that event, the Court shall within a further period of thirty days issue notice to the other parties to respond to the application, and(a)in case all the parties agree for conciliation, the court shall refer the matter to conciliation and thereafter, the provision of the Arbitration and Conciliation Act, 1996 which are applicable after the stage of making of the reference to conciliation under that Act, shall apply;(b)in case all the parties agree for mediation, the court shall refer the matter to mediation in accordance with the Bihar Civil Procedure (Mediation) Rules, 2008 in part II shall apply;(c)in case all the parties do not agree and where it appears to the court there exists elements of a settlement which may be acceptable to the parties and that there is a relationship between the parties which has to be preserved, the Court shall refer the matter to conciliation or mediation as the case may be, in case the dispute is referred to Conciliation, the provisions of Arbitration and Conciliation Act, 1996 which are applicable after the stage of making of the reference to Conciliation under that Act shall and in case the dispute is referred to mediation, the provisions of the Bihar Civil Procedure (Mediation) Rules, 2008 shall apply.(vii)(a)Where none of the parties apply for reference either to Arbitration, or Lok Adalat, or judicial settlement or for conciliation or mediation, within thirtydays of the direction under clause (b) of Rule 2, the Court shall, within a further period of thirtydays, issue notices to the parties or their representatives fixing the matter for hearing on the question of making a reference either to conciliation or mediation.(b)After hearing the parties or their representatives on the day so fixed the Court shall if there exists elements of a settlement which may be acceptable to the parties is relationship between the parties which has to be preserved, refer the matter to conciliation or mediation. In case the dispute is referred to conciliation, the provisions of the Arbitration and Conciliation Act, 1996 which are applicable after the stage of the making of the reference to Conciliation under that Act shall and in case the dispute is referred to mediation, the provisions of the Bihar Civil Procedure (Mediation) Rules, 2008, shall apply.(viii)(a)No next friend or guardian for the suit shall, without the leave of the Court, expressly recorded in the proceedings of the Court, opt for any one of the modes of alternative Dispute Resolution nor shall enter into any settlement on behalf of a minor or person under disability with reference to the suit in which he acts as mere friend or guardian.(b)Where an application is made to the Court for leave to enter into a settlement initiated into in the Alternative Dispute Resolution Proceedings on behalf of a minor or other persons under disability and such minor or other person under disability is represented by Counsel or Pleader, the Counsel or Pleader shall file a certificate along with the said application to the effect that the settlement is, in his opinion, for the benefit of the minor or other person under disability. The decree of the Court based on the settlement to which the minor or other person under disability is a party, shall refer to the sanction of the Court thereto and shall set out the terms of the settlement.
