Since the last two decades, digitisation has crept into even the smallest aspects of our lives. It has integrated economies, reinvented industries, enhanced collaboration, and has become a springboard for a host of innovations across almost every sector.
However, until recently, justice systems worldwide have lagged far behind, and due to a general lack of digitization in justice administration systems, the old and archaic systems have prevailed. Had this not been the case, entrepreneurs would have been able to permeate this sector, arguably, much sooner.
That said, a part of our justice system called Alternative Dispute Resolution (ADR) is catching up. And with it, the concept of Online Dispute Resolution (ODR) has begun to bloom. In this guide, we evaluate what Online Dispute Resolution in India means, along with its benefits, current usage, and recent trends.
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What Online Dispute Resolution in India Really is
Primary Benefits of Online Dispute Resolution in India
Recent Developments in Online Dispute Resolution in India
What Online Dispute Resolution in India Really is
Online dispute resolution (ODR) in India is a subset of alternative means of dispute resolution. It relies on technology to facilitate dialogue and grievance redressal between the disputing parties.
ODR takes place digitally or electronically in the form of arbitration, negotiation or mediation. It may also involve a resolution framework that combines the best elements of these three.
The basic parameters of ODR in India are:
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Technology to manoeuvre the dispute resolution process
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Centralised ODR platforms which the parties can use mutually for resolving their disputes
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Presence of reliable and expert neutrals who are capable of acting as independent third parties to adjudicate the dispute, and
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Administrative infrastructure, whether technological or non-technological, which improve the efficiency of the dispute resolution process, such as by hands-on case management, digital interactions, data management, expert assistance from non-law backgrounds, etc.
ODR can primarily take two forms – ODR conducted by private bodies and court-annexed ODR. While the latter concept is yet to find its foothold in India, the former has gradually picked up its pace. Various legal tech startups in India serve as ODR platforms for people looking to resolve their disputes out of court. Entities like Presolv360, CADRE, SAMA, etc., are some of these private bodies. These start-ups are providing a digital avenue for resolving individual-to-individual, business-to-consumer and business-to-business disputes alike.
Online dispute resolution processes hold inestimable significance, especially when our court system is overburdened with millions of pending cases. There is no denying that the Indian courts are trying to adapt and adopt legal technology. However, they will still be unable to conclude the hulking heaps of unresolved matters any time soon. With online dispute resolution, people get an alternative option to resolve their dispute that is also steered by effective technology.
Primary Benefits of Online Dispute Resolution in India
Some of the common reasons why people are shifting to online dispute resolution in India from traditional courts are:
Cost-Effectiveness of Digital Dispute Resolution
The first and foremost benefit of ODR is the cost-efficiency of the entire process. With the usage of technology, digital means of communication, cloud storage and digital documentation, ODR sizeably reduces dispute resolution expenses.
Addresses latent needs
Apart from the lakhs of disputes that do graduate to the level of our ‘formal’ justice system, there are many more disputes that remain unresolved and are not pursued by the aggrieved parties because of the perceived hopelessness of the court machinery. In these cases, the parties decide to give up on pursuing justice even if they have been wronged, simply because the price of dispute resolution hurts them way more than the dispute itself.
Perhaps for the first time, these large numbers of latent disputes may be able to come to the fore and get the attention they need, because of the cost-effectiveness, speed, and ease of a final resolution that Online Dispute Resolution (ODR) offers.
Cross-Border Dispute Resolution Possible
The multiplicity of jurisdictions often results in deadlocks in cross-border disputes. With online dispute resolution in India, an Indian buyer can resolve their dispute with a vendor in Japan digitally. The method is not only cost-effective but also eliminates the need for the parties to go to courts for resolving their minor disputes.
Time-Efficient Redressal
With ODR, disputing parties can eliminate the process of appointing a lawyer and going through a trial. Further, owing to the use of technology, there is no need to physically gather documents and appear physically for court hearings. All this makes online dispute resolution in India a highly time-saving and expeditious option.
Convenience and Remote Access
ODR is available to anyone with a good internet connection – it’s that simple! There is no need for a person to consult a lawyer and wait for the court’s hearing date for resolution. The process works 365 days, 24 hours a day. Further, the process of online dispute resolution is not space-bound to a courtroom. Parties can settle their dispute from the comforts of their home.
Usage of ODR in India
Here are some of the fields where online dispute resolution in India can be (and is to some extent) a great option:
Consumer Disputes
With a boom in eCommerce in India, online transactions have augmented drastically. However, with an increase in online purchase, consumer grievances have also increased. A company may need to carry out litigation for multiple customers simultaneously across the country. Similarly, a consumer may need to locate the vendor and file a complaint in another court.
ODR removes this requirement and allows consumers to file their complaint online with the ODR entity. The ODR platform will then perform arbitration/mediation over the internet between the seller and buyer. Further, a company can also streamline its dispute resolution process by integrating an ODR mechanism. This way, it can allow its customers to file their complaints through an ODR platform instead of a court.
IPR Disputes
IPR infringement, be it of Trademark, Copyright, Patent. Domain Name or Design can lead to lengthy court proceedings and exorbitant lawyer bills. Further, the resolution is not warranted and the disputing parties may have to wait for years before reaching a conclusion. With online dispute resolution, parties can resolve their disputes without getting the courts involved.
The World Intellectual Property Rights Organization has also been working on a similar protocol for parties to use electronic means to resolve their domain name disputes. It is also planning to expand the online arbitration process for other IPR disputes as well.
Online Dispute Resolution in Family Disputes in India
Matters of divorce, family property dispute, domestic violence, etc., can be long-drawn-out. Double it if the parties reside in different geographies. Online dispute resolution removes these location barriers and jurisdiction clashes. It also allows parties to resolve their dispute without hostility or even facing each other,
Contract Enforcement
Several ODR startups in India allow users to insert an e-arbitration or e-mediation clause in their business agreements. They also enable users to file their complaint about contract breach or non-enforcement. In this method, users can ensure prompt enforcement or remedy for breach of their contract in a short span of time.
Recent Developments in Online Dispute Resolution in India
While ODR in India is still in its embryonic stage when compared to some of the ODR leader nations, there have been significant developments in the sector recently. The coronavirus pandemic has pushed people towards digitisation. Further, it has persuaded them to find alternative means to resolve their disputes.
On June 6, 2020, Niti Aayog held the first meeting for the advancement of online dispute resolution in India. The meeting was held in association with Agami and Omidyar Network India. The meeting explored how ODR can be the key to enhance access to justice in India and increase ease of doing business.
It also recently launched a handbook on ODR on April 10, 2021. The handbook highlights the importance of ODR in India and how businesses can adopt such a model for faster dispute resolution.
In Conclusion
There have been several creative strides to use technology as a means of enhancing legal penetration in India. Online dispute resolution is one solution that can bolster our legal system and make justice a more approachable affair. The support from global bodies, legal tech startups and our government has also catapulted ODR’s proliferation and rightfully classed it as the much-needed addendum to traditional courts.
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