MA Fourth Schedule : Amendment to Code of Civil Procedure, 1908

Explanation using Example

Example 1: Mediation in a Business Dispute

Introduction: ABC Corp and XYZ Ltd are involved in a contractual dispute over the delivery of goods. The case is brought before the court, and the judge believes that the matter could be resolved outside the courtroom.

Application: According to Section 89(b) of the Code of Civil Procedure, 1908, as amended by The Mediation Act, 2023, the court may refer the parties to mediation. The judge suggests mediation, and both parties agree to try resolving their issues through a court-annexed mediation center.

Outcome: The mediation process is initiated under the provisions of the Mediation Act, 2023. If the parties reach an agreement, it is documented and submitted to the court for approval, effectively resolving the dispute without further litigation.

Conclusion: By opting for mediation, ABC Corp and XYZ Ltd save time and legal expenses. Non-compliance with the mediation agreement could lead to the case being reopened in court, emphasizing the importance of adhering to the mediated settlement.

Example 2: Family Dispute Resolution through Lok Adalat

Introduction: Mr. and Mrs. Sharma are undergoing a contentious divorce, with disputes over child custody and property division. The court recognizes potential for an amicable settlement.

Application: Under Section 89(c) of the Code of Civil Procedure, 1908, as amended, the court refers the dispute to Lok Adalat, in accordance with the Legal Services Authorities Act, 1987. Lok Adalat is a forum for resolving disputes through compromise and settlement.

Outcome: The Lok Adalat facilitates discussions between Mr. and Mrs. Sharma, leading to a mutually agreeable settlement on child custody and property division. The settlement is binding and enforceable, similar to a court decree.

Conclusion: The use of Lok Adalat provides a quicker and less adversarial resolution. Failure to comply with the Lok Adalat's settlement could result in legal enforcement actions, highlighting the need for adherence to the agreed terms.

Example 3: Arbitration in a Construction Dispute

Introduction: A construction company, BuildWell Ltd, is in a dispute with a subcontractor over project delays and payment issues. The court identifies arbitration as a suitable method for resolution.

Application: As per Section 89(a) of the Code of Civil Procedure, 1908, the court refers the dispute to arbitration. The Arbitration and Conciliation Act, 1996, governs the proceedings, ensuring a structured arbitration process.

Outcome: An arbitrator is appointed, and both parties present their cases. The arbitrator's decision is binding, providing a clear resolution to the dispute. This process is typically faster than traditional court litigation.

Conclusion: Arbitration offers a private and efficient dispute resolution mechanism. Non-compliance with the arbitrator's award can lead to enforcement actions, underscoring the importance of respecting the arbitration outcome.

Example 4: Judicial Settlement in a Neighborhood Dispute

Introduction: Two neighbors, Mr. Gupta and Mr. Verma, are in conflict over a boundary wall. The court sees potential for a compromise.

Application: According to Section 89(d) of the Code of Civil Procedure, 1908, the court may effect a compromise between the parties. The judge facilitates discussions, helping the parties reach a mutually acceptable solution.

Outcome: Mr. Gupta and Mr. Verma agree on a new boundary line and share the cost of constructing a new wall. The court records the settlement, making it enforceable.

Conclusion: Judicial settlement provides a formal yet flexible resolution. Non-compliance with the settlement terms may lead to further legal action, emphasizing the need for adherence to the agreement.