Section 4. Procedure for Amicable Settlement. —

1. Who may initiate proceedings. —

   Any individual who has a cause of action against another individual involving any matter within the authority of the Lupon as provided in Section 2 may complain orally or in writing, to the Barangay Captain of the barangay referred to in Section 3 hereof.

2. Mediation by Barangay Captain. —

   Upon receipt of the complaint, the Barangay Captain shall within the next working day summon the respondent/s, with notice to the complainant/s for them and their witnesses to appear before him for a mediation of their conflicting interests. If he fails in his effort within fifteen (15) days from the first meeting of the parties before him, he shall forthwith set a date for the constitution of the Pangkat in accordance with the provisions of Section 1 of this Decree.

3. Hearing before the Pangkat. —

   The Pangkat shall convene no later than three (3) days from its constitution, on the day and hour set by the Barangay Captain, to hear both parties and their witnesses, simplify issues, and explore all possibilities for amicable settlement. For this purpose, the Pangkat may issue summons for the personal appearance of parties and witnesses before it.

   In the event that a party moves to disqualify any member of the Pangkat by reason of relationship, bias, interest or any other similar ground/s discovered after constitution of the Pangkat, the matter shall be resolved by the affirmative vote of the majority of the Pangkat whose decision shall be final. Should disqualification be decided upon, the procedure provided for in paragraph (g) of Section 1 shall be followed.

4. Sanctions. —

   Refusal or willful failure of any party or witness to appear in compliance with the summons issued pursuant to the preceding two (2) paragraphs may be punished by the city or municipal court as for indirect contempt of court upon application filed therewith by the Lupon Chairman, the Pangkat Chairman, or by any of the parties. Further, such refusal or willful failure to appear shall be reflected in the records of the Lupon Secretary or in the minutes of the Pangkat Secretary and shall bar the complainant from seeking judicial recourse for the same cause of action, and the respondent, from filing any counterclaim arising out of or necessarily connected therewith.

   Willful failure or refusal without justifiable cause on the part of any Pangkat member to act as such, as determined by the vote of a majority of all the other members of the Lupon, whose decision thereon shall be final, shall result in his disqualification from public office in the city or municipality for a period of one year.

5. Time limit. —

   The Pangkat shall arrive at a settlement/resolution of the dispute within fifteen (15) days from the day it convenes in accordance with paragraph (c) hereof. This period shall, at the discretion of the Pangkat, be extendible for another period which shall not exceed fifteen (15) days except in clearly meritorious cases.