Step 1: Provision under CPC.
Section 89 CPC provides for settlement of disputes outside the court, through Alternative Dispute Resolution (ADR) mechanisms such as arbitration, conciliation, mediation, and judicial settlement including Lok Adalats.
Step 2: Difference between sub-sections.
- Section 89(1): Empowers the court to refer disputes to ADR.
- Section 89(2): Explains procedure after reference.
Step 3: Analysis of options.
- (A) 80(1): Deals with notice before filing a suit against government.
- (B) 89(2): Only procedural, not the enabling provision.
- (C) 89(1): Correct, main enabling provision for ADR.
- (D) 80(2): Provides exception to notice requirement.
Step 4: Conclusion.
Therefore, Section 89(1) CPC provides option for settlement of disputes outside court.