Report No. 238
7 Section 89 of the Civil Procedure Code which provides for settlement of disputes outside the court is inappropriately worded, as pointed out by the Supreme Court in the case of Afcons Infrastructure Ltd. v. Cherian Varkey Construction Co. (P) Ltd., (2010) 8 SCC 24 The language adopted has created difficulty in giving effect to the provision.
Section 89 should be recast as indicated in paragraph 6.2. Secondly, the allied provisions, namely, Order X, rules 1A to 1C need recasting. The proposed amendment of the said rules in Order X is set out in paragraph 6.3. Thirdly, section 16 of the Court-fees Act, 1870 is required to be recast in order to ensure that unintended benefit does not go to the plaintiff. The proposed amendment is set out in paragraph 6.4.3.
Justice P.V. Reddi
Justice Shiv Kumar Sharma Member
Dr. Brahm Agrawal