Historical step is taken to introduce ADR in the code of civil procedure 2003 by inserting the section 89A and 89B. In 2003 section 89A and 89B empowers the trial court to settle the dispute by ADR. Again in 2006 a new amendment is brought in the Code of Civil procedure to provide the power to Appellate court by section 89C.

·          Procedure of Mediation under Section 89A of The Code Of Civil Procedure 1908.

Definition of Mediation under This Section:

“Mediation” Under this section shall mean flexible, informal, non-binding, confidential, non-adversarial and consensual dispute resolution process in which the mediator shall facilitate compromise of disputes in the suit between the parties without directing or dictating the terms of such compromise.

·          Arbitration

Another method of ADR is stipulated in the section 89B of the code of civil procedure 1908 and that is arbitration. The parties are free to choose either.

In section 89B (1) if the parties to a suit at any stage of the proceeding apply to the court for withdrawal of the suit on ground that they will refer the dispute or disputes in the suit to arbitration for settlement, the court shall allow the application and permit the suit to be withdrawn and the dispute or disputes, thereafter, shall be settled in accordance with Salish Ain, 2001 (Act no.2 of 2001) so far as may be applicable.