MA Fourth Schedule : Amendment to Code of Civil Procedure, 1908
Act
Summary
The Fourth Schedule of the Mediation Act, 2023, amends the Code of Civil Procedure, 1908, to enhance dispute resolution mechanisms. It omits the sub-heading "Arbitration" under SPECIAL PROCEEDINGS and revises Section 89 to facilitate settlements outside the court. The amendments allow courts to refer disputes to arbitration, mediation, Lok Adalat, or effect a compromise, promoting alternative dispute resolution methods.
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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 foru...
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