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2025 Supreme(Ori) 625

IN THE HIGH COURT OF ORISSA AT CUTTACK
Sashikanta Mishra, J.
Charulata Beura & Another - Petitioners
Versus
Ranjana Pradhan & Others – Opposite Parties
C.M.P. No.1133 of 2024
Decided On : 24-10-2025

Advocates Appeared:
For the Petitioner:Mr. K.M. Dhal, Advocate
For the Opposite Party :Mr. D.P. Mohanty, Advocate

Mediation settlements are binding and must result in a decree, as mandated by Section 89 of the CPC, overriding the need for additional evidence to support declarations.

Headnote:(A) Code of Civil Procedure, 1908 - Section 89 - Mediation - Dispute regarding easementary rights - Court referred matter to mediation, parties reached an amicable settlement, but trial Court refused to decree the settlement on grounds of requiring positive evidence for a declaration - Court clarified that mediation settlement is valid, and a decree must be passed accordingly - Impugned order set aside. (Paras 6, 18)

(B) Mediation - Interpretation of statutory provisions - Statutory imperative for courts to refer certain cases to alternative dispute resolution, including mediation, has been underscored by the Supreme Court, clarifying categories where ADR is suitable. (Paras 11, 14, 18)

Facts of the case:
The plaintiffs sought relief related to user rights of property and injunction against defendants. Both parties, after mediation, agreed on usage terms and no future construction on disputed Government land. They filed a report acknowledging the settlement, which the trial Court did not decree.

Findings of Court:
The trial Court erred in not passing a decree based on the mediation report, despite acknowledging its acceptance. The court reiterated that once mediation succeeds, a corresponding decree must follow.

Issues: Whether a decree can be passed based solely on a mediation settlement without additional evidence and what constitutes a suitable case for mediation under Section 89 of CPC?

Ratio Decidendi: The court emphasized that mediation serves as a legally recognized resolution process, obligating the trial court to decree in accordance with the parties' settlement under the mediation framework.

Result: CMP allowed, impugned order set aside; decree to be passed in accordance with the mediation report.

Table of Content
1. background of mediation settlement agreement. (Para 1 , 2 , 3 , 4)
2. trial court's refusal to decree based on compromise. (Para 5 , 6)
3. arguments supporting the validity of mediation decree. (Para 8 , 9 , 10)
4. statutory framework for mediation under cpc. (Para 11 , 12 , 13)
5. suitability for mediation regarding easement rights. (Para 14 , 15)
6. court's obligation to decree based on mediation. (Para 17 , 18)
7. final decree based on mediation agreement. (Para 19)

JUDGMENT :

SASHIKANTA MISHRA, J.

The petitioners, who are plaintiffs in C.S. No.992 of 2017 pending in the Court of learned Additional Civil Judge (Senior Division) Cuttack, have filed this application seeking to challenge the order dated 27.06.2024 passed by the said Court in refusing to decree the suit in terms of the settlement arrived between the parties by way of mediation.

2. The suit in question has been filed by the plaintiffs inter alia, seeking the following relief:-

“(A) That a decree declaring that the plaintiffs have right of user of the 'A' schedule property as passage may be declared and their such user over the same may be confirmed.

(B) That a decree for perpetual injunction may be passed against the defendants restraining them from raising any construction on any portion of the 'A' schedule property and interfering with the user of the same as passage in any manner whatsoever.

(C)That in case the defendants raise any construction over any portion of the 'A' schedule property during the pendency of the suit a decree for mandatory injunction may be passed directing them to remove the obstruction within the time fixed by the Court failing which the obstruction may be removed through the process of the Court at the cost of the plaintiffs.

(D) That a decree for cost may be passed against the defendants.

(E) That the plaints may be granted such other relief or reliefs to which they may be found entitled under law and equity.”

3. Defendant-Opposite Party Nos.2 and 3 are the only contesting parties. During pendency of the suit, the parties decided to settle the dispute amicably for which, they filed the petition under Section 89 of CPC on 12.12.2022 with prayer to refer the case to mediation. Such prayer of the parties was allowed and the suit was referred to one Santosh Kumar Mohanty, Mediator. After discussion in the mediation proceeding, the parties ultimately decided to resolve the dispute on 12.02.2024.

4. Both parties admitted that the disputed land being Government land, they have no manner of right, title, interest or possession over the suit property and as such, they will not raise any claim thereon. It was further agreed that they shall not obstruct each other from using the suit property including the passage over the disputed plot and shall not construct any permanent structure. The mediation was thus successful and the mediator submitted his report before the trial Court.

5. Both parties prayed for acceptance of the report and to pass a decree in accordance therewith. The trial Court however, after perusing the report, though accepted the same but was not inclined to pass decree on the ground that a decree of declaration cannot be passed upon mere compromise/understanding entered into between the parties and that for such decree, positive evidence must be led.

6. Holding thus, the trial Court by the impugned order held that if the parties have resolved their dispute and do not want to litigate further, the plaintiffs are at liberty to resort to the provision under Order XXIII Rule 1 of the CPC.

7. Heard Mr. K.M. Dhal, learned counsel appearing for the plaintiff-Petitioners and Mr. D.P. Mohanty, learned counsel appearing for the defendant-Opposite Parties.

8. Mr. Dhal argues that the parties having resolved their dispute amicably through mediation and the trial Court having accepted the report of the Mediator, the suit ought to have been decreed in terms of the settlement arrived at between the parties. Mr. Dhal further argues that the sui

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