Alternative Dispute Resolution or ADR is the alternative legal remedies to litigation and trial and includes arbitration, court settlement conferences, and mediation, among others. In India, the mediation process has gained more popularity compared to other methods. Mediation is a voluntary process in which a trained and impartial third person, the mediator, helps the parties in dispute to reach an amicable settlement that is responsive to their needs and acceptable to all sides. This is mainly applied in the cases of matrimonial disputes, disputes arising out of contracts, disputes relating to specific performance, disputes between suppliers and customers, disputes between bankers and customers, disputes between developers/builders and customers, disputes between landlords and tenants/licensor and licensees, disputes between insurer and insured, etc.

Section 89 of the Code of Civil Procedure, 1908 allowed the courts to refer to alternative dispute resolution (ADR) methods to settle pending disputes.  The courts can refer cases for mediation even when the parties are not ready for reference for mediation if there is an element of the settlement.

Types of judicial mediation

1. Statutory Mediation: There are some kinds of disputes that are required by law to be subjected to the mediation process, such as matrimonial and labor disputes. Section 9 of the Family Court Act, makes is it mandatory to settle a matrimonial dispute in relation to maintenance, child custody, divorces, etc., through the process of mediation.
2. Mediation under the supervision of court (Court referred mediation): The Court maintains a panel of experienced mediators who are available to the parties. The Court appoints a mediator and sets a date by when the mediation must be completed. The same lawyers who appeared in the case represent their clients before a mediator and the litigants are also allowed to participate. The best part of this type of mediation is any agreement reached is enforceable as a judgment of the court.
3. Court referred mediation: The court merely refers the matter to a mediator. This is either by private mediation or contractual mediation. 
4. Private Mediation: Mediation services are offered on a private, monetary basis by qualified mediators to the Court, general public, and the commercial and governmental sectors for dispute resolution through mediation.
5. Contractual mediation: In contractual mediation, the parties to a contract may include a mediation clause to resolve disputes as part of the terms of their agreement as it can effectively resolve contractual disputes before they turn into a protracted legal battle. The conditions of the mediation and the selection of the mediator are mentioned in the contract. The results of the mediation may be enforced as judgments of a court.

Mediation is confidential. Everything which is discussed during the mediation and any documents prepared especially for the mediation cannot be used by any party outside of the mediation process, or in any portion of the litigation or trial. The trial is expensive, financially and emotionally, and is much riskier than mediation.