Section 5 in Alternative Dispute Resolution and Mediation Rules, 2017
5. Court to give guidance to parties while giving direction to opt.
- Before directing the parties to exercise option under Rule 3, the Court shall give such guidance as it deems fit to the parties, by drawing their attention to relevant factors which parties will have to take into account, before they exercise their option as to the particular mode of settlement, namely :(i)that it will be to the advantage of the parties, so far as time and expense are concerned, to opt for one or other of these modes of settlement referred to in Section 89 of the Code rather than seek a trial on the disputes arising in the suit;(ii)the difference between the different modes of settlement as explained below:- Settlement by 'Arbitration' means the process by which an Arbitrator appointed by parties or by the Court or by the High Court Arbitration Centre in accordance with The Arbitration Centre (Domestic and International), High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh Rules, 2015, as the case may be, adjudicates the disputes between the parties to the suit and passes an award by the application of the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) in so far as they refer to arbitration.Settlement by 'Conciliation' means the process by which a conciliator who is appointed by parties or by the Court, as the case may be, conciliates the disputes between the parties to the suit by the application of the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) in so far as they relate to conciliation and in particular, in exercise of his powers under section 67 and 72 of that Act, by making proposals for a settlement of the dispute and by formulating or reformulating the terms of a possible settlement; and has a greater role than a mediator.Settlement by 'Mediation' means the process by which a mediator appointed by the Coordinator of the Mediation Centre or by the Court in exceptional cases, as the case may be, mediates the dispute between the parties to the suit by the application of the provisions of these Rules, and in particular, by facilitating discussion between the parties directly or by communicating with each other through the mediator, by assisting parties in identifying issues, reducing misunderstandings, clarifying priorities, exploring areas of compromise, generating options in an attempt to solve the dispute and emphasizing that it is the parties own responsibility for making decisions which affect them.Settlement in 'Lok Adalat' means settlement by Lok Adalat as contemplated by the Legal Services Authorities Act, 1987."Judicial settlement" means the process by which the Court will effect a compromise between the parties by following such procedure as may be prescribed.
