Question:

Amendments made in the year----------- through the insertion of Sec.---------- to the Civil Procedure Code introduced provisions to enable the courts to refer pending cases to arbitration, conciliation and mediation to facilitate early and amicable resolution of disputes.

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Section 89 of the CPC is a cornerstone of the ADR movement in India. Remember the year of the amendment (1999) and the five ADR methods mentioned: Arbitration, Conciliation, Judicial Settlement, Lok Adalat, and Mediation.
Updated On: Jul 13, 2026
  • 1989,98
  • 1990,88
  • 1999,89
  • 2001,88
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The Correct Option is C

Approach Solution - 1

Step 1: Understanding the Concept:
The question asks about the specific amendment to the Code of Civil Procedure, 1908 (CPC) that introduced the mechanism for courts to refer cases to Alternative Dispute Resolution (ADR) processes.
Step 2: Key Formula or Approach:
This major change was brought about by the insertion of a new section, Section 89, into the CPC. This section empowers the court, where it appears there are elements of a settlement, to formulate the terms and refer the parties to one of the five ADR forums: arbitration, conciliation, judicial settlement (including settlement through Lok Adalat), or mediation.
This section was inserted by the Code of Civil Procedure (Amendment) Act, 1999. It came into force on 1st July 2002.
Step 3: Detailed Explanation:
The purpose of inserting Section 89 was to reduce the burden on the courts and to promote amicable settlements. The Law Commission of India had recommended this change to integrate ADR mechanisms into the formal judicial process. The amendment was passed in the year 1999, and the section inserted was Section 89.
Step 4: Final Answer:
The amendments were made in the year 1999 through the insertion of Sec. 89.
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Approach Solution -2

The blank asks for the year of the amendment and the section number that empowered courts to refer pending civil suits to arbitration, conciliation, judicial settlement or mediation. Let's test each option pairing against what is actually on record.

  1. 1989, 98: No amendment to the Code of Civil Procedure, 1908 in 1989 introduced a new ADR-enabling provision, and Section 98 of the CPC deals with the decision of an appellate court where there is a difference of opinion among judges, not with reference to ADR forums. This pairing is incorrect on both counts.
  2. 1990, 88: There was no CPC amendment in 1990 relating to ADR, and Section 88 of the CPC deals with interpleader suits, a wholly different subject. This option fails on both the year and the section.
  3. 1999, 89: The Code of Civil Procedure (Amendment) Act, 1999, inserted Section 89, titled "Settlement of disputes outside the Court," directing the court to formulate terms of a possible settlement and refer the parties to arbitration, conciliation, judicial settlement (including Lok Adalat) or mediation wherever it appears that elements of a settlement exist. Both the year and the section number match exactly.
  4. 2001, 88: Section 89 (not 88) is the ADR-enabling provision, and the amendment inserting it was passed in 1999, not 2001. This option misstates both figures.

Only the third option correctly pairs the year of the amendment with the section that was actually inserted.

Therefore, the correct answer is 1999, 89.

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