Section 3 in Alternative Dispute Resolution and Mediation Rules, 2017
3. Procedure for directing parties to opt for alternative modes of settlement in Suits suitable for Alternative Dispute Resolution; and reading Clauses (c) and (d) of Section 89 (2) of the Code.
(1)(i)the Court shall, after recording admissions and denials at the first hearing of the suit under Rule 1 of Order X, Code of Civil Procedure 1908, direct the parties to opt for one of the modes of settlement of dispute outside the Court as specified in clauses (a) to (d) of sub section 1 of Section 89, Code of Civil Procedure 1908, r/w. Rule 1A of Order X and on their failure the Court shall ascertain consent for Arbitration or Conciliation; if there is no consent the Court shall select Lok Adalat for simple cases and Mediation for all other cases, reserving reference to a Judge assisted settlement (Judicial Settlement, in accordance with the procedure as may be prescribed) only in exceptional / Special cases.(ii)it is not necessary for the Court, before referring the parties to an Alternative Dispute Resolution process to formulate or reformulate the terms of a possible settlement. It is sufficient if the Court describes the nature of dispute (in a sentence or two) and makes the reference.(iii)Subject to clause (i) above the Court may resort to Alternative Dispute Resolution Processes at any stage of the proceedings.(2)The following categories of Suits and Cases of civil nature, which can be subjected to just exceptions or additions, are normally considered to be not suitable for Alternative Dispute Resolution process having regard to their nature :(i)representative suits. (ii) disputes relating to election to public offices.(ii)cases involving grant of authority by the court after enquiry, as for example, suits for grant of probate or letters of administration.(iv)cases involving serious and specific allegations of fraud, fabrication of documents, forgery, impersonation, coercion etc.(v)cases requiring protection of courts, as for example, claims against minors, deities and mentally challenged and suits for declaration of title against government.(3)In all other Suits reference to Alternative Dispute Resolution process is a must and the Court shall briefly record reasons for not resorting to any of the Alternative Dispute Resolution processes.(4)The words 'Judicial Settlement' and 'Mediation' in Clauses (c) and (d) of Section 89(2) of the Code shall have to be interchanged to read as under:(i)(c)for mediation, 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 Legal Services Authorities Act, 1987 (39 of 1987) shall apply as if the dispute were referred to a Lok Adalat under the provisions of that Act;(ii)(d)for Judicial Settlement, the Court shall effect a compromise between the parties and shall follow such procedure as may be prescribed.
