Online Dispute Resolution

Recently, NITI Aayog planned to launch Online Dispute Resolution (ODR) handbook.

ODR is resolution of disputes outside courts, particularly of small and medium- value cases, using digital technology and techniques of alternate dispute resolution (ADR), such as negotiation, mediation, and arbitration.

Present status of ODR in India

• e-Courts Mission Mode Project
• Conducting e-Lok Adalats: COVID-19 pandemic first e-Lok Adalat organised by the Chhattisgarh.
• Virtual Courts
• RBI’s ODR Policy on Digital Payments: 2019, Nandan Nilekani led High level Committee on Deepening Digital Payments, recommended ODR to handle complaints out of digital payments.
• Draft National E-Commerce Policy: use of an electronic grievance redressal system

Benefits of ODR

• Cost effective: potential to reduce legal costs by reducing time for resolution and doing away with the need for legal advice.
• Convenient and quick dispute resolution: eliminates the need for travel and synchronization of schedules.
• Increased access to justice: online negotiation and mediation are premised on mutually arriving at an agreement and hence they make the dispute resolution process less adversarial and complicated
• Removes unconscious bias: detaches audio visual cues relating to the gender, social status, ethnicity, race, etc. and helps in resolving disputes based on the claims and information submitted by the disputing parties, rather than who these parties are.
• Improved legal heath of the society: Greater access to dispute resolution processes result in improved ‘Ease of Doing Business’
• Complete transformation of the legal paradigm: allows for a comprehensive vision of justice

Challenges faced in adoption of ODR:

• Structural Challenges:
• Digital literacy: varies across age, ethnicity and geography- digital divide
• Digital infrastructure: essential technology infrastructure access to computers, smart phones and medium to high bandwidth internet connection
• Gender divide in access to technology: Internet India report 2019- women constitute 1/3rd of Internet users in India and 28% in rural areas
• Behavioural Challenges:
• Lack of awareness regarding ODR: low confidence in ODR processes and restricted application of ODR in sectors with huge potential for such as MSME, consumer disputes etc.
• Role of the government and the PSUs: Ministry of Law and Justice, government departments are a party to around ‘46 percent’ of court cases
• Operational Challenges:
• Privacy and confidentiality concerns: online impersonation, breach of confidentiality tampering of digital evidence or digitally delivered awards/ agreements.
• Archaic Legal Processes: no provision for online notarization of documents.

Way forward

• Increase physical access to infrastructure and technology
• Increase digital literacy
• Capacity building: collaborative efforts to introduce training and certification programmes for enhancing capacity of mediators to scale up mediation in the country
• Adopt ODR for Government litigation
• Regulation of ODR: protects the rights of the end users while ensuring that over-regulation does not stifle innovation.