Technology is transforming our modes of communication even reshaping how we resolve legal disputes. Amidst rapid technological progress, Online Dispute Resolution (ODR) has emerged as a promising alternative to traditional dispute resolution methods. Online Dispute Resolution (ODR) uses technology to resolve disputes between parties and employs information and communication technology. ODR falls within the umbrella of Alternative Dispute Resolution (ADR) while it leverages technology to streamline the dispute resolution process.
Various government departments and ministries in India have taken up several initiatives to promote the implementation of ODR. As a first, the National Internet Exchange of India (NIXI) adopted a dispute resolution policy that did not require in-person hearings to resolve the dispute. In 2016, the Department of Consumer Affairs launched the Integrated Consumer Grievance Redressal Mechanism (INGRAM), which provided a platform for consumers to address their complaints and grievances directly with the companies that had partnered with the National Consumer Helpline (NCH) voluntarily. In 2017, the Ministry of Micro, Small & Medium Enterprises (MSMEs) launched the SAMADHAAN portal to resolve the issue of delayed payments faced by MSMEs. Further, NITI Ayog constituted a high-level committee in June 2020 to develop an action plan that can aid in mainstreaming ODR. In its report titled “Designing the Future of Dispute Resolution: the ODR Policy Plan for India,” the committee recommended measures at three levels to tackle challenges in adopting the ODR framework in India. Despite no comprehensive legal framework to govern ODR, there are existing legislations such as the Arbitration and Conciliation Act, 1996, the Code of Civil Procedure, 1908 and the Information and Technology Act, 2000 that act as support legislation for ODR. The judiciary has established a supportive structure for ODR implementation in India by virtue of its rulings and operational methodologies.
Private companies are also entering the Indian ODR space. ODR platforms such as Sama, Centre for Alternative Dispute Resolution Excellence (CADRE), Centre for Online Dispute Resolution (CODR), AGAMI, WeVaad and PreSolv360 have gained significant importance in efficiently and effectively managing disputes. While ODR may seem to be the future of dispute resolution, it comes with its own benefits and challenges.
Benefits of Online Dispute Resolution
Cost-effective
Traditional dispute resolution methods are expensive and rather than making justice accessible, they often act as barriers to accessing justice. Due to factors such as lengthy court proceedings, legal representation, court fees, travel expenses and other miscellaneous expenses, accessing justice can be quite expensive in a country like India. In comparison, ODR is more affordable as well as convenient.
Timely and Swift Resolution
Resolving a dispute in traditional court proceedings is time-consuming as well as complex for litigants. ODR platforms are less time-consuming and streamline the dispute resolution process. Since the litigants can participate in the proceedings from anywhere, it also saves time spent on travelling.
Easy access to justice
ODR also increases the accessibility of justice for marginalised communities by eliminating barriers related to financial status, disabilities, geographical distance, social discomfort in face-to-face interactions, and other factors that might impede access to justice.
Less burden on courts
One critical challenge for the Indian legal system is the increase in the existing backlog of court cases. Due to reasons such as a shortage of judicial staff and resources, and lengthy and complex legal procedures, the Indian judiciary is burdened with pending cases and this backlog leads to delayed justice. ODR platforms help reduce the burden on courts by offering alternative and efficient dispute resolution mechanisms.
Current Developments in India
India has been actively exploring and implementing ODR solutions to address the inefficiencies of its traditional legal system. Several key developments highlight the growing adoption and integration of ODR in the Indian legal landscape:
National E-Governance Plan (NEGP): The Indian government has recognized the potential of technology to improve legal services and has incorporated ODR into its National E-Governance Plan (NEGP). The NEGP aims to enhance the delivery of public services through the use of technology, including the implementation of digital platforms for dispute resolution. This initiative reflects the government’s commitment to modernizing the legal system and improving access to justice.
Judicial Reforms and Initiatives: The Indian judiciary has taken steps to embrace digital transformation, including the adoption of virtual hearings and online case management systems. The COVID-19 pandemic accelerated this shift, with courts across the country conducting hearings via video conferencing platforms. These developments have laid the groundwork for broader ODR adoption, demonstrating the judiciary’s willingness to integrate technology into legal proceedings.
SEBI has launched an Online Dispute Resolution Mechanism to facilitate online conciliation and arbitration for resolving disputes within the Indian Securities Market. In collaboration with market infrastructure institutions and under SEBI’s guidance, an Online Dispute Resolution (ODR) portal has been developed to improve the current dispute resolution process. The SMART ODR portal provides a user-friendly interface for submitting complaints and disputes, offering streamlined online conciliation and arbitration services.
ODR Platforms and Startups: Several startups and organizations in India are pioneering ODR solutions, offering platforms for online mediation, arbitration, and negotiation. These platforms aim to provide efficient and user-friendly services for resolving disputes across various sectors, including consumer disputes, commercial disputes, and family matters. The growth of ODR startups indicates a growing interest in and demand for online dispute resolution services.
Legal Framework and Guidelines: The Indian government and legal authorities are working to establish a robust legal framework for ODR. In 2021, the Ministry of Law and Justice released the Draft Mediation Bill, which includes provisions for online mediation. This bill aims to formalize and regulate the practice of mediation, including online mediation, providing a legal foundation for ODR in India. Additionally, various state governments and legal institutions are developing guidelines and protocols for the use of ODR in specific contexts.
Challenges of Online Dispute Resolution
Lack of awareness
The concept of ODR is still relatively new in India, and there is a general lack of awareness about it among people. There is also resistance from people to adopt ODR as people still believe in resolving disputes through conventional methods of dispute resolution like courts and tribunals.
Lack of comprehensive legal framework
A major setback for ODR in India is the absence of a comprehensive legal framework to govern it. This gives rise to uncertainty amongst litigants regarding their rights and obligations and inconsistency without established rules and procedures. There is also ambiguity and uncertainty regarding the enforcement of ODR outcomes.
Lack of digital infrastructure
A critical precondition for ODR is having a robust digital infrastructure across the country. Lack of access to laptops, smartphones, internet connectivity, and digital illiteracy are roadblocks that need to be tackled for ODR to be utilised by everyone.
Privacy concern
Data security and confidentiality are also major concerns with the adoption of ODR. Challenges such as identity protection and breach of confidentiality through the circulation of sensitive and private documents and data shared during ODR procedures can compromise the integrity and fairness of ODR.
Conclusion
ODR has the potential to transform and revolutionise legal proceedings in India. The executive, legislative, and judiciary have proactively promoted ODR in India. Besides being time and cost-effective, ODR can also help reduce the burden on our judicial system. However, many barriers exist to successful online dispute resolution in India. Hindrances such as lack of a comprehensive legal framework, lack of awareness and digital infrastructure, and resistance from people to adopt ODR can come in the way of adoption of ODR. These challenges must be addressed and resolved to ensure the success of ODR in India. Through collaborative efforts among stakeholders and incorporating technological advancements, India can unlock the potential of ODR and cater to its society’s diverse dispute resolution requirements.
