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CS Professional · Drafting, Pleadings and Appearances · Judicial and Administrative Framework

A civil court refers a dispute to a suitable institution for judicial settlement under section 89 of the CPC. Which statement correctly describes the legal consequence?

The institution or person receiving a judicial settlement reference is deemed to be a Lok Adalat, and the Legal Services Authorities Act provisions apply as if the dispute had been referred to a Lok Adalat. It is not treated as arbitration or mediation.

  1. AThe institution or person is deemed to be a Lok Adalat and the Legal Services Authorities Act provisions apply as if referred to a Lok AdalatCorrect
  2. BThe Arbitration and Conciliation Act, 1996 applies as if it were an arbitration reference
  3. CThe institution acts as a mediator and the Court itself effects the compromise
  4. DThe institution becomes a civil court with full powers under the First Schedule

Explanation

Section 89(2)(c) provides that for judicial settlement the Court refers the matter to a suitable institution or person, who is deemed to be a Lok Adalat, and the Legal Services Authorities Act provisions apply accordingly. Arbitration or conciliation follows clause (a) and mediation follows clause (d), which are different consequences.

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