Case Comment On Afcons Infrastructure Ltd. & Anr. V. Cherian Varkey Construction Co. (P) Ltd. & Ors.

Abstract

This landmark verdict by the Supreme Court of India is significant as it clarifies the scope and purpose of Section 89 of the Code of Civil Procedure, 1908 [1] , in order to facilitate the amicable settlement of disputes outside the traditional court process. It establishes a procedural, legal framework for parties and courts to designate appropriate dispute resolution forums. The backdrop against which Afcons was decided is essential to understanding the judgment's significance. By the turn of the millennium, Indian courts were contending with a mounting backlog of civil litigation, rendering the institutional promotion of alternative dispute resolution a legislative necessity rather than a mere policy preference. In 1988, the Law Commission of India in its 129th Report recommended the introduction of a conciliation court mechanism to address the growing pendency of cases, and the Malimath Committee similarly urged Parliament to make court referral to ADR forums a statutory obligation; these twin recommendations formed the direct legislative basis for the Code of Civil Procedure (Amendment) Act, 1999, which inserted Section 89 into the CPC, coming into force on 1 July 2002. [2] [1] &sect; 89, Code Civ. Proc. (1908) (India). [2] Law Commission of India, One Hundred and Twenty-Ninth Report on Urban Litigation: Mediation as Alternative to Adjudication (1988); Shreya Prakash, 'The Evolution of Section 89 of the Code of Civil Procedure: From Case Law to Reform' (SCC Times, 26 February 2025) <https://www.scconline.com/blog/post/2025/02/26/the-evolution-of-section-89-of-the-code-of-civil-procedure-from-case-law-to-reform/> accessed 23 August 2026.