Pre-Litigation Mediation

In plain language. Pre-litigation mediation means trying to settle before you ever file a case — resolving the dispute without entering the court system at all.

A practical example. A supplier is owed money by a customer with whom it hopes to keep trading rather than sue. It proposes mediation before filing anything. Two sessions later a payment schedule is agreed and signed. No case is ever filed, the relationship survives, and the agreement is enforceable if the schedule is not honoured.

How it differs from court-referred mediation. Court-referred mediation happens after proceedings have begun, when a judge refers a suitable matter to mediation — including under Section 89 of the Code of Civil Procedure. The settlement carries the same status; what differs is that litigation has already been commenced, with its associated cost and delay.

Why it matters. Pre-litigation mediation is the cheapest and fastest point at which a dispute can be resolved, and the point at which relationships are most likely to survive. Once a case is filed, positions harden and costs begin accruing.

For how this applies to unpaid dues and business contracts, see recovering money owed in India and commercial and contract disputes.