Section 307(a) in Andhra Pradesh Civil Rules of Practice and Circular Orders, 1980
(a)The Court shall, after recording admission and denials at the first hearing of the suit under Rule 1 or Order X, and where it appears to the Court that there exist elements of a settlement which may be acceptable to the parties, formulate the terms of settlement and give them to the parties for their observations under sub-section (1) of Section 89, and the parties shall submit to the Court their responses within thirty days of the first hearing.