Explanation:

Section 89 is about settlement of disputes outside court. Where it appears to the court that there exits elements of a settlement which may be acceptable to the parties, the court shall formulate the terms of settlement and give them to the parties for their observations and after receiving the observations of the parties, the court may reformulate the terms of a possible settlement and refer the same for - Arbitration, Conciliation Mediation Judicial settlement including settlement through Lok Adalat. Thus the court cannot refer the disputes for negotiation.