Step 1: Understanding the Concept:
The question asks about the specific amendment to the Code of Civil Procedure, 1908 (CPC) that introduced the mechanism for courts to refer cases to Alternative Dispute Resolution (ADR) processes.
Step 2: Key Formula or Approach:
This major change was brought about by the insertion of a new section, Section 89, into the CPC. This section empowers the court, where it appears there are elements of a settlement, to formulate the terms and refer the parties to one of the five ADR forums: arbitration, conciliation, judicial settlement (including settlement through Lok Adalat), or mediation.
This section was inserted by the Code of Civil Procedure (Amendment) Act, 1999. It came into force on 1st July 2002.
Step 3: Detailed Explanation:
The purpose of inserting Section 89 was to reduce the burden on the courts and to promote amicable settlements. The Law Commission of India had recommended this change to integrate ADR mechanisms into the formal judicial process. The amendment was passed in the year 1999, and the section inserted was Section 89.
Step 4: Final Answer:
The amendments were made in the year 1999 through the insertion of Sec. 89.