A Judicial Settlement occurs when a judge presiding over a case encourages or facilitates a settlement between the parties instead of proceeding to a full trial.
Section 89 of CPC: Under the Code of Civil Procedure, if the court believes there are elements of a settlement, it may refer the dispute to ADR methods, including "Judicial Settlement."
Lok Adalat: One of the most common forms of judicial settlement in India is through Lok Adalats, where a sitting or retired judge helps parties reach a compromise that is then recorded as a decree of the court.
Effect: A judicial settlement has the same binding force as a court judgment but is reached through mutual consent rather than a contested verdict.
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