From Courtrooms to Conference Rooms: Why Mediation Is the Smarter Way to Resolve Disputes
- Nistha Hansaria
- 1 day ago
- 3 min read
Corporate & Commercial Series
Series 3 | Article 1
Introduction: A Better Way to Resolve Disputes
Tired of long legal battles, stressful paperwork, and rising costs? Mediation offers a faster, more affordable, and far less adversarial way to resolve disputes-without stepping into a courtroom.
This article explains what mediation is, how it works, and why it is increasingly becoming the preferred method for resolving conflicts in India.
What Is Mediation?
Mediation is a voluntary, out-of-court dispute resolution process where a neutral third party-called a mediator-helps people discuss their issues and reach a mutually agreeable solution.
Who Is a Mediator?
A mediator facilitates conversations, encourages problem solving, and helps parties find common ground. They do not impose decisions or take sides.
Why Choose Mediation Over Litigation?
Faster and More Cost-Effective: Many disputes can be resolved within days or weeks, saving parties months or years of litigation.
Confidential and Less Stressful: All discussions remain private, giving parties the freedom to speak openly without fear of repercussions.
Relationship-Preserving: Ideal for family, commercial, neighbourhood, and partnership disputes where ongoing relationships matter.
Flexible and Tailored Solutions: Mediation allows customised solutions that courts may not be able to provide.
The Mediation Act, 2023: A Major Step Forward
Why Was It Introduced?
The Act aims to reduce the court backlog, bring uniformity to mediation practices, and make mediation a formally recognised dispute resolution option across India.
How to Appoint a Mediator
Parties may jointly appoint a qualified mediator of any nationality.
If they cannot agree, they can approach a Mediation Service Provider to recommend or appoint one.
Are Mediation Settlements Enforceable?
Yes. Under the Act, a Mediation Settlement Agreement (MSA) is legally binding and has the same effect as a court decree.
Is Confidentiality Guaranteed?
Absolutely. Confidentiality applies to both in-person and online mediation sessions.
When Should You Opt for Mediation?
Family Disputes: Such as divorce terms, child custody, or visitation schedules.
Property and Neighbourhood Conflicts: Boundary issues, shared spaces, or local disagreements.
Landlord–Tenant Disputes: Rent enhancements, maintenance issues, or misunderstandings.
Contract and Commercial Issues: Delays, payment terms, and performance disputes.
Intellectual Property Disagreements: Such as trademark or patent issues requiring confidentiality.
When Mediation Is Not Suitable
Mediation is not appropriate for:
Serious criminal cases
Fraud or forgery
Cases requiring adjudication on a matter of law
Disputes with large power imbalances
Situations needing urgent court orders (e.g., injunctions)
Mediation in Commercial Disputes
Why It Works
In modern, globalised business environments, mediation helps parties resolve conflicts efficiently, avoid multi-jurisdictional litigation, and protect commercial relationships.
Pre-Institution Mediation
Under the Commercial Courts Act, 2015, parties must attempt mediation before filing certain commercial suits-reducing litigation pressure and encouraging amicable settlements.
Operational Benefits
Mediation helps avoid draining internal resources such as management time, legal teams, and financial advisors.
Mediation in Real Estate Disputes
Common Real Estate Issues
Disputed property boundaries
Construction delays
Builder-buyer disagreements
Society management and maintenance conflicts
Landlord–tenant misunderstandings
How Mediation Helps
It encourages dialogue, reduces hostility, protects relationships within cooperative housing societies, and offers quicker, cost-effective resolutions.
Conclusion: The Smarter Path Forward
Mediation is practical, efficient, and empowering. With the Mediation Act, 2023, India has taken a major step towards making mediation a reliable and widely accessible method of dispute resolution.
By encouraging open communication, protecting confidentiality, and giving parties control over the outcome, mediation stands out as the smarter path-not just an alternative to litigation, but often the better choice.
About the Author
Nistha Hansaria is an Associate with MZD Legal Consultancy. Nistha has recently joined the firm and is a part of the firm’s general advisory and real estate team. She can be contacted at nistha@mzdlegal.in
About MZD Legal Consultancy
MZD Legal Consultancy is a boutique law firm in Mumbai, India. The firm was established in 2011 and comprises professionally qualified lawyers with varied levels of experience and expertise in specific practice areas. To know more, click here www.mzdlegal.in
