Mediation in Ayodhya dispute

Mains Paper 2: Polity | Separation of powers between various organs dispute redressal mechanisms and institutions.

From UPSC perspective, the following things are important:

Prelims level: Legal provisions mentioned in the newscard

Mains level: Arbitration mechanism in India – pros, cons, challenges and way forward

A Constitution Bench of the Supreme Court has referred the Ayodhya dispute for mediation in a bid to heal minds and hearts.
The mediation would start in a week in Faizabad district of Uttar Pradesh of which the disputed area is a part with the process conducted in-camera.

Legal provisions for Mediation

Under Section 89 of the Civil Procedure Code, judges must ensure that all avenues to resolve a dispute outside the Court have been exhausted.
The Section reads: Where it appears to the Court that there exist elements of a settlement which may be acceptable to the parties, the Court shall formulate the terms of settlement and give them to the parties for their observations.
After receiving the observations of the parties, the Court may reformulate the terms of a possible settlement and refer the same for:

Arbitration (a process by which parties select an independent person, who renders a decision regarding the case)
Conciliation (it attempts to make parties come to an agreement, about the problem at hand)
Judicial settlement including settlement through Lok Adalat or
Mediation