Question

In which of the following cases, the Supreme Court has clarified regarding the court-annexed ADR under Section 89 of CPC?

• A. M/s. Afcons Infrastructure Ltd. v. M/s. Cherian Varkey Construction Co. Ltd. (2010)
• B. Supreme Court Bar Association v. Union of India & Anr. (1998)
• C. Ishwar Chand Jain v. High Court of Punjab & Haryana (1999)
• D. Supreme Court Bar Association & Anr. v. State of Uttar Pradesh & Ors. (2025)

Hint:

The Afcons Infrastructure case is the go-to judgment for understanding how Section 89 of the CPC and court-referred ADR works in practice. It resolved the confusion created by the original wording of the law.

Answer 1

The Correct Option is A

Section 89 of the Code of Civil Procedure (CPC) empowers courts to refer disputes to Alternative Dispute Resolution (ADR) mechanisms.
However, the original text of the section was poorly drafted and created significant confusion.
The Supreme Court undertook a comprehensive exercise to clarify the law and streamline the procedure in the landmark case of Afcons Infrastructure Ltd.
v.
Cherian Varkey Construction Co.
Ltd.
(2010).
In this case, the court explained the proper interpretation of Section 89, detailed the differences between the various ADR processes (arbitration, conciliation, mediation, etc.
), and laid down clear, practical guidelines for trial courts on how and when to refer cases to ADR.
This judgment is the definitive authority on court-annexed ADR in India.