4. Court to give Guidelines to parties while giving direction to opt.
- Before directing the parties to exercise option under clause (b) of Rule 2, the Court shall give such guidance as it deems fit to the parties, by drawing their attention to the 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 the other of these modes of settlement referred to in Section 89 rather than seek a trial on the disputes arising in the suit.(ii)That, where there is no relationship between the parties which requires to be preserved, it may be in the interest of the parties to seek reference of the matter of arbitration as envisaged in clause (a) of subsection (1) of Section 89.(iii)That where there is a relationship between the parties which requires to be preserved, it may be in the interest of parties to seek reference of the matter to conciliation or mediation, as envisaged in clause (b) or (d) of sub section (1) of Section 89.Explanation: Dispute arising in matrimonial, maintenance and child custody matters shall, among others, be treated as cases where a relationship between the parties has to be preserved.(iv)That, where parties are interested in a final settlement which may lead to a compromise, it will be in the interests of the parties to seek reference of the matter to Lok Adalat or to judicial settlement as envisaged in clause (c) of sub-section (1) of Section 89.(v)The difference between the different modes of settlement namely, arbitration, conciliation mediation and judicial settlement as explained below:-Settlement by "Arbitration" means the process by which an arbitrator appointed by parties or by the Court, 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 power under Sections 67 and 73 of that Act, by making proposals for 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 parties or by the Court, as the case may be, mediates the disputes between the parties to the suit by the application of the provisions of the Mediation Rules, 2003 in Part II, and in particular, by faciliating 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 Authority Act, 1987."Judicial Settlement" means a final settlement by way of compromise entered into before a suitable institution or person to which the court has referred the dispute and which institution or persons are deemed to be the Lok Adalats under the provisions of the Legal Services Authority Act, 1987 (39 of 1987) and where after such reference, the provisions of the said Act, apply as if the dispute was referred to a Lok Adalat under the provisions of that Act.
