In the world of dispute resolution, litigation often steals the spotlight. Courtrooms, legal notices, and long hearings seem to be the default imagery associated with legal disputes in India. However, over the last few years, mediation has emerged as a practical, cost-effective, and increasingly powerful alternative to traditional litigation. As lawyers, while we are trained to advocate in courts, it is equally important to guide our clients toward the most suitable path for resolving their disputes—and sometimes, that path is outside the courtroom.

At Sterling & Partners, we believe in tailoring the legal strategy to the unique facts, goals, and sensitivities of each case. In this post, we explore when mediation might be the better choice over litigation and why it should be seriously considered.

What is Mediation?

Mediation is a voluntary and confidential process where a neutral third party—called a mediator—facilitates dialogue between disputing parties to help them arrive at a mutually acceptable resolution. Unlike arbitration or litigation, the mediator does not impose a decision. Instead, the process empowers parties to take control of the outcome.

Mediation has been formally recognised under Section 89 of the Code of Civil Procedure, 1908, and more recently reinforced by the Mediation Act, 2023, which seeks to institutionalise and promote mediation as a preferred method of dispute resolution in India.

When is Mediation the Right Choice?

1. Preserving Relationships

In disputes involving family, business partners, co-founders, or long-term associates, preserving relationships often matters as much as the outcome. Mediation promotes cooperative dialogue instead of adversarial confrontation. It is especially useful in:

  • Family property disputes

  • Divorce and custody matters

  • Partnership or shareholder disagreements

  • Landlord-tenant issues

2. Cost and Time Efficiency

Litigation in India is notoriously slow, with cases often dragging on for years or even decades. Mediation, on the other hand, can deliver results within weeks or months, saving significant legal costs, time, and energy. It is often the most economical route for both individuals and businesses.

3. Privacy and Confidentiality

Court proceedings are public by nature, and sensitive information can often become part of the public record. Mediation is entirely confidential. This is especially beneficial for high-profile individuals, companies, and family matters where discretion is paramount.

4. Control Over the Outcome

Unlike litigation where the final decision rests with a judge, mediation gives parties full control over the terms of settlement. This flexibility often leads to more creative and workable solutions than a binary win/lose judgment.

5. Early Resolution

In many cases, clients approach us when a dispute is just beginning to escalate. At this early stage, mediation can be a powerful tool to nip the issue in the bud, especially before formal legal proceedings make reconciliation harder.

 

When Litigation May Still Be Necessary

Mediation isn’t a universal remedy. Certain cases may require the court’s authority due to the nature of the dispute or non-cooperation by one party. For example:

  • Criminal matters involving offences

  • Cases requiring urgent injunctions or stay orders

  • Situations involving fraudulent conduct or malafide intentions

  • Matters where one party refuses to engage in good faith

In such scenarios, litigation is often necessary either to assert legal rights or to set a binding precedent.

A Balanced Legal Strategy

At Sterling & Partners, we have represented clients in complex commercial litigation as well as facilitated settlements through structured mediation. Our experience shows that mediation and litigation are not mutually exclusive—in fact, the most effective legal strategy often involves knowing when to switch from one to the other.

We routinely advise clients on the strategic use of mediation as either a first step toward resolution or a parallel processduring ongoing litigation. The recently enacted Mediation Act, 2023, further encourages court-referred and pre-litigation mediation, offering a robust framework for parties to explore settlement.

Final Thoughts

In an increasingly fast-paced and complex world, the legal profession must evolve beyond the boundaries of traditional litigation. Mediation is not just a cost-saving alternative; it is a respectful, dignified, and empowering way to resolve disputes.

As legal advisors, our role is not merely to fight battles—but to secure the best outcomes. If that can be done without a courtroom, all the better.