Explanation:

The Law Commission of India in its 129th report in 1988 recommended for the introduction of ADR in India. Clause 3(d) of the Code of Civil Procedure Bill 1997, accordingly provided that "with a view to implement the 1291h report of the Law Commission of India, and to make conciliation scheme effective, it is proposed to make it obligatory for the court to refer the dispute after the issues are framed for settlement either by way of arbitration, conciliation, mediation, judicial settlement or through Lok Adalais. It is only after the parties fail to get their dispute settled through any one of the alternate dispute resolution methods that the suit shall proceed further in the section in which it was filed. Section 89 has been introduced to the Civil Procedure Code by the amendment Act of 1999 and it became effective from .1.072002. The basic objective of section 89 is to ensure that the court makes an endeavor to facilitate out-of -court settlements through one of the ADR processes before the trial commences.