Section 89 of CPC : Section 89: Settlement of disputes outside the Court.

Explanation using Example

Example 1:

Mr. Sharma and Mr. Verma are neighbors in Delhi who have a long-standing dispute over the boundary of their properties. Mr. Sharma claims that Mr. Verma has encroached on his land by building a wall. Mr. Verma, on the other hand, argues that the wall is within his property limits. Both parties file a case in the civil court.

During the initial hearings, the judge observes that both parties are open to negotiation and suggests that the matter could be settled outside the court. The judge formulates a possible settlement where Mr. Verma agrees to demolish the wall and rebuild it on the correct boundary line, and Mr. Sharma agrees to bear half the cost of reconstruction.

The judge then refers the case for mediation. A mediator is appointed, and after several sessions, both parties agree to the terms. The mediator drafts a settlement agreement, which is then submitted to the court. The court approves the settlement, and the case is resolved without a prolonged trial.

Example 2:

A small business owner, Ms. Gupta, in Mumbai, has a contractual d...

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