You might consider this advice as odd, coming from a lawyer, but this is what I strongly advocate. Litigation after all, is a painful process, especially more so in India where the courts can take years to settle the simplest of matters. If you are a first time litigator, you would expect an early disposal, which in most cases does not happen.
Here is how to avoid litigation altogether:
1. Always analyse the credentials of the person you are dealing with.
Who is the person? What is his/her background? How was he while dealing with others? What is his litigation history? If needed, you may even hire a detective to know more. Your objective should be to understand the person better and explore how you can avoid litigation.
2. Sit down and talk!
Sitting across the table often removes gaps in communication which ultimately saves time, money and cordial relations. Therefore, it is always advisable to mediate in the beginning
3. Do not give too much leverage.
One of the main reasons for being taken granted in a relationship is the undue leverage you have given the other person over time. This is what leads to disputes and litigation.
If all the above factors are considered right in the beginning, I am sure many litigations can be avoided.