VOL.

2 ISSUE 4 Journal of Legal Research and Juridical Sciences ISSN (O): 2583-0066

RESOLVING CONFLICTS IN THE DIGITAL AGE: THE FUTURE OF ONLINE

DISPUTE RESOLUTION

Badal Yadav*

ABSTRACT

Online dispute resolution (ODR) has transformed conflict resolution methodologies in the
digital age. This journal article investigates technology's transformative power in providing
accessible, efficient, and cost-effective dispute resolution. It investigates the evolution of
alternative dispute resolution platforms, such as automated negotiation tools and algorithm-
driven mediation processes, as well as their impact on traditional legal systems. The article
also investigates the challenges and opportunities presented by ODR in ensuring fairness,
privacy, and impartiality in a virtual environment. It assesses the use of ODR by institutions,
governments, and businesses, taking into account the implications for improving access to
justice and reducing the burden on overburdened judicial systems. The article delves into the
effectiveness of alternative dispute resolution mechanisms in a variety of contexts, including e-
commerce, consumer disputes, and international arbitration. It examines the ethical and
regulatory dimensions of ODR, addressing concerns about data security, confidentiality, and
human intervention. The transformative potential of ODR as a key tool in modern conflict
resolution reshapes traditional legal paradigms, ushering in a new era of dispute resolution
tailored to the digital landscape.

Keywords: Online Dispute Resolution (ODR), Conflict Resolution, Technology, Alternative

Dispute Resolution (ADR).

INTRODUCTION

“If time be of all things the most precious, wasting time must be the greatest prodigality”
-Benjamin Franklin (Founding Father of the USA)

The challenge of conflict resolution in India is a serious problem, requiring an alternative

search for state intervention. Conflict is present in every society, but it needs to be resolved
systematically. There is a need to find solutions intelligently and intuitively to minimize state

*
BA LLB, FOURTH YEAR, MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES.

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interference. Along with making convenient and necessary rules, there is also a need to
encourage people to settle their disputes without making noise. The justice system can be
speeded up by spreading awareness in society and through technological advancement. This
will encourage an alternative and proactive search in the process of justice communication,
which will ensure the resolution of problems.

There is a need to accelerate the search for alternative conflict resolution to build a harmonious
and equal society. Exploring innovative approaches like mediation and restorative justice can
help foster dialogue, empathy, and mutual understanding among conflicting parties.

Due to the increasing pendency of cases and the delayed delivery of justice in India, the judicial
system remains a challenge. The total number of cases initiated in the year 2022 is 2,29,78,911. 1
These staggering numbers highlight the immense burden placed on the judicial system in
dealing with conflict resolution.

More than 4.32 crore cases are reported to be pending, especially in subordinate courts, which
account for more than 85 percent(4,28,21,378) of total pending cases 2. After the subordinate
courts, the High Court accounts for more than 11 percent (65 lacks) of total pending cases and
more than 69000 cases are pending in Supreme Court2. The backlog of cases not only burdens
the judicial system but also hampers access to justice for the citizens. This figure is alarming
and highlights the need for judicial system reform. At the highest level, coordinated efforts are
required to streamline the legislative and judicial processes.

THE EVOLUTION OF CONFLICT RESOLUTION

In Indian culture, ADR (Alternative Dispute Resolution) is a distinctive way to begin an out-
of-court settlement. Every day, new cases are filed in court, allowing the judiciary to operate
as efficiently as possible while also having an opportunity to settle disputes through ADR and
reach a decision without the assistance of the court. This approach is traditional in Indian
society and culture and is still used in rural India through the Panchayat system3.

1
National Judicial Data Grid,( Year 2022), available at
https://njdg.ecourts.gov.in/njdgnew/?p=main/pend_dashboard
2
‘Nearly 5 Crore Pending Cases In Courts, Over 69,000 In Supreme Court’, NDTV (9 February 2023)
3
S. Chaitanya Shashank and Kaushalya T. Madhavan, ‘ADR in India: Legislation and Practices’, Lawctopus,
available at https://www.lawctopus.com/academike/arbitration-adr-in-india/

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ADR is used to settle conflicts outside of the courtroom. The ADR system was mentioned in
the works of great Indian philosophers and political thinkers like Yajnavalkya and Narada in
the past, who described Kula and Shreni tribunal for dispute resolution3. The ADR method has
its roots in antiquity and is still practiced in rural areas to assist in settling small social disputes.
For resolving conflicts within or between large or small families, community structures, and
rural communities, ADR is viewed as a natural and effective method.

The prevalence of Puga, Shreni, and Kula tribunals in Indian society has been the subject of
extensive research3. Understanding these various sects', eateries', and tribes' perspectives was
crucial. Puga was a tribunal made up of residents from the same neighborhood who belonged
to various sects3. Its main goal was to restore their relationship with their sect and the sect's
mosque.

What we now know as commercial arbitration originated in the significant and long-standing
Indian judicial institution known as the Shreni Tribunal. The Puga Tribunal was the institution's
predecessor, a powerful tribunal with the authority to overturn Kula and Sreni's decisions 3. A
final appeal was permitted to the king, and its decisions were subject to challenge before the
Pradvivaka. The Pradvivaka was a council of experienced advisors and legal experts who
reviewed the decisions made by the king. They ensured that the final appeal process was fair
and just, providing an opportunity for any potential errors or biases to be addressed. 3

Hussainara Khatoon vs. Home Secretary State of Bihar4: The Hussainara Khatoon case
highlighted the issue of prolonged detention without trial, emphasizing the need for a timely
resolution of disputes. In this case, the court opined that: “The State is under a constitutional
mandate to ensure speedy trial and whatever is necessary for this purpose has to be done by the
State. It is also the constitutional obligation of this Court, as the guardian of the fundamental
rights of the people as a sentinel on the qui-vive, to enforce the fundamental right of the accused
to speedy trial by issuing the necessary directions to the State which may include taking of
positive action”4. Online dispute resolution mechanisms can offer an alternative avenue for
individuals to seek justice, potentially reducing delays and improving access to legal remedies.

4
Hussainara Khatoon and Ors. v. Home Secretary, State of Bihar 1979 AIR 1369, 1979 SCR (3) 532.

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UNDERSTANDING ALTERNATE DISPUTE RESOLUTION (ADR)

Alternative dispute resolution (ADR) is an alternative dispute resolution procedure that

complements conventional judicial procedures and offers a collaborative approach to resolving
disputes. ADR aims to promote communication, understanding, and compromise between
parties involved, leading to quicker and more cost-effective resolutions compared to traditional
litigation. It allows for more flexibility in tailoring solutions that meet the specific needs and
interests of the parties involved. ADR is a potential alternative strategy for fair dispute
resolution, but it often does not replace litigation as a means of resolving disputes.

The effectiveness, utility, and difficulties of ADR in the Indian context are examined as
follows: In India, the use of ADR to resolve disputes is still perceived as lacking. The American
Arbitration Association and International Center for Alternative Dispute Resolution (ICADR)
handled 10,273 cases up until 2022 5. The Singapore International Arbitration Center (SIAC)
handled 357 new cases in the year 20226. The question of whether ADR is fully accepted and
adaptable in the Indian context arises due to the difference in the number of cases handled.
Acceptability and adaptability are more crucial in this situation than efficiency when using
ADR. Many people and business organizations prefer to use conventional legal processes due
to a possible lack of awareness of the goals and advantages of ADR in India. To raise awareness
of the procedure and advantages of ADR among different lawyers, litigants, and local litigant
communities, a communication and awareness program through education and training needs
to be conceptualized. In 2017, a high-level committee headed by Justice B.N. Srikrishna
submitted a report to review the institutionalization of arbitration in India, leading to the 2019
amendments to the Arbitration and Conciliation Act 7. The report claims that there are few
reliable arbitral institutions in India and that the general public has misconceptions about
institutional arbitration. The government does not support these institutions due to a lack of
interest. A judicial attitude toward arbitration and an expert arbitration bar is also necessary.
The government should adopt a positive attitude to improve the institutionalization of
arbitration institutions and be connected to the expert arbitration bar to increase public
awareness of the arbitration process and give it more credibility. In 2020, the Indian judiciary

5
Kathryn E. Bettini , Lawrence G. Scarborough , Desmonne Alana Bennett, ‘2022 Arbitration Trends from
AAA and ICDR’, Faegre drinker, available at
https://www.faegredrinker.com/en/insights/publications/2023/4/2022-arbitration-trends-from-aaa-and-
icdr#:~:text=Despite%20the%20increase%20in%20caseload,to%20%243.2%20billion%20in%202021.
6
‘SIAC Announces 2022 Statistics; Q1 2023 Sees High Filing’, Singapore International Arbitration Centre.
7
Anubhav Yadav, ‘Institutional Arbitration: Need of the Hour’, The Times of India (3 August 2021)

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faced challenges due to the pandemic and the need for self-inculcation to protect itself from
enemies. The Indian judicial system has quickly and efficiently shifted from its old-school
approach to a new technological approach, with e-filing being an important aspect of this shift.
However, the Indian Judiciary will need to face new challenges and measures to make the
functioning of the Judiciary smooth and effective in the future.

UNDERSTANDING THE ONLINE DISPUTE RESOLUTION (ODR)

ODR is a brand-new mechanism that stands for a fresh approach to online dispute resolution.
It entails transferring different dispute processes to an online platform, which is analogous to
virtual court hearings. This mechanism offers a variety of options to settle disputes, including
ombudsman, complaints board, negotiation, conciliation, arbitration, facilitative settlement,
arbitration, and other methods. It expands the options and offers a reliable option for resolving
conflicts. ODR is frequently used to resolve disputes in a variety of contexts, including
commercial disputes, real estate issues, and property matters. ODR is crucial to hybrid
processes because it combines online and offline components, facilitating quicker and more
efficient problem-solving.

ODR is also being considered a viable option in the situations like pandemic, where
maintaining physical distance is essential. It makes dispute resolution simple and comfortable,
lowering the possibility of protracted delays in the legal system. In addition to assisting
individuals in resolving their conflicts, it also advances the modernization of the judicial
system. ODR has opened up new possibilities in the field of dispute resolution, which may be
good for society's advancement. As a result, ODR is a tool that aids in conflict resolution and
updates the legal system.

ODR (Online Dispute Resolution) was created to bring the dispute resolution procedure to a
virtual judicial platform. This technology was still in its infancy in India, but the COVID-19
pandemic has increased its significance. Its main benefit is that neither party needs to be
physically present for it to work. To communicate with their arbitrators, mediators, or
negotiators, both parties to the dispute can use this platform from the convenience of their home
or place of business. ODR is very well-liked for dispute resolution in cross-border business
transactions due to its specialization8. On this online platform, people from various nations can

8
Woojong Kim, ‘Critical Evaluation of the Online Dispute Resolution for Cross-Border Consumer Transaction
Under E-Commerce’, SSRN, available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2853303

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easily settle their differences without a fight. While traveling to pricey and opulent conference
rooms is not necessary for the resolution of disputes, one or both parties must go to the place
designated as the arbitration's seat.

The ODR process has aided in the resolution of disputes and made it possible for disputes to
be settled more quickly and fairly. Its ability to be used remotely from a nearby office or home
saves time, money, and hassle for users.

ODR (Online Dispute Resolution) not only lowers the cost of litigation, but also the costs
associated with it, such as travel, lodging, and venue, and it yields results quickly. ODR may
prove to be a helpful tool in situations where the parties' sensitivity levels may cause issues
when they are in the same room together, such as in matrimonial disputes. Since disputes can
be settled from any place, the parties have the opportunity to settle them quickly and securely
through this method. The ODR process promotes a sense of sensitivity and security from the
perspectives of privacy and security because it is a private virtual platform to which only
individuals involved in dispute resolution are granted access.

A prime example of ODR can be eBay, which has been courting controversy since 1999 as an
online marketplace9. EBay has provided an internal system that assists the parties to a
transaction to resolve disputes online. More than 60 million disputes are resolved each year
through this system, which is similar to the total annual volume of cases filed in all US civil
courts9. It clearly shows what ODR can do in the area of capacity and communication
capability, as well as empowering parties to resolve their disputes faster in terms of the number
and capacity of disputes.

CHALLENGES FOR ODR

ODR might be a good solution, but it would be wrong to downplay its flaws. According to
Stephen Hawkins, “One of the premises of the universe is that nothing is perfect.” In India, a
major barrier to using digital media for dispute resolution is digital illiteracy. Although the
literacy rate in India is around 77.7 percent it lacks digital literacy 10. In vast India, the majority
of people reside in rural and semi-urban areas, where there is a particular lack of internet

9
‘Online Dispute Resolution’, Resolution System Institute, available at https://www.aboutrsi.org/special-
topics/online-dispute-resolution
10
Sanjay Sharm, ‘ International Literacy Day 2022 theme, significance and & history’, Times of India (8
September 2022)

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connectivity and knowledge of digital devices. The challenging aspects of digital illiteracy in
this developing country must be addressed for ODR to be successful, and solutions must be
created with this in mind.

ODR is a system that well-educated city dwellers use, but there are some issues with it as well.
The ODR process might leave one feeling disconnected and unwelcome, which could in some
cases prevent parties from communicating effectively while resolving disputes. Additionally,
ODR deprives the plaintiff of the sense of a personal touch, as if someone is speaking to them
directly on the screen. The use of ODR in India faces significant challenges related to internet
connectivity. It is impossible to predict when internet connectivity might suddenly stop, for
example, because of a storm or violent lightning. In such a scenario, there may be a
communication issue that interferes with an ODR meeting, and security may also be
compromised. We can assume that ODR is located in a sensitive area where internet access
restrictions and technical difficulties have an adverse effect. There may be riots in the area the
day before one's ODR meeting, and the government may severely restrict communication
routes. No right, however, is absolute because each one is subject to some sane limitations. As
a result, it can be difficult for residents of ODR's sensitive areas to deal with internet access
interruptions and technical difficulties. These kinds of technical issues, like having a bug or
virus because one's device to suddenly stop working, can be especially detrimental in this
system. Therefore, we must comprehend the technical issues arising in this delicate area of
ODR and come up with solutions to deal with them.

Through research on Indian cyber security platforms, we can learn that cybercrime poses a
serious threat to ODR11. Cyber-attacks and cyber security pose a significant threat to online
dispute resolution (ODR) platforms. These attacks can compromise the confidentiality,
integrity, and availability of the information exchanged during the resolution process 11.
Additionally, they can undermine the trust and credibility of ODR systems, discouraging users
from participating in online dispute resolution due to concerns about data breaches and
unauthorized access. Every ODR meeting involves the internet, and there is always a chance
that it could be hacked. Even though platforms like Zoom and Microsoft Teams have
implemented security measures to protect against cyber threats, ODR practitioners must stay
updated on the latest security protocols and best practices 12. Additionally, Indian cyber security

Arjun Kapur, ‘Cybercrime: A threat to Data Privacy’ Live Law (1 March 2023)
11

Romita Majumdar, ‘After zoom, research finds Microsoft Teams vulnerable to cyber attacks’, The mint (28
12

April 2020)

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platforms have emphasized the need for strong passwords, regular software updates, and
encrypted communication channels to minimize the risk of cyber-attacks during ODR
sessions.

CURRENT STATUS OF ODR

In India, there is currently no specific law on ODR that offers clear instructions for resolving
digital disputes. This situation demonstrates the need for legal regulations in India's field of
digital dispute resolution.

Despite this, the Indian Evidence Act of 1872 and the Information Technology Act of 2000
both recognize digital evidence and electronic signatures. Particularly, Section 65B of the
Indian Evidence Act 1872 talks about the admissibility of electronic records and states that, the
Act allows electronic records to be considered documents if certain conditions are met, such as
the computer output being produced during a regular period of use, the information is regularly
fed into the computer, the computer is operating properly, and the information reproducing or
derived from it13. The computer output is treated as a single computer, and references to a
computer are construed accordingly. Information supplied to a computer is considered supplied
in any appropriate form, and information derived from other information is considered derived
therefrom by calculation, comparison, or other process13.

Several departments and ministries, including the "e-Court Mission," "e-Lok Adalat," and
"Ministry of Micro, Small, and Medium Enterprises," have also adopted the Samadhan Portal
and the Reserve Bank of India's ODR policies for digital payments, which conveniently support
the resolution of disputes14. A report by NITI Aayog titled "Designing the Future of Dispute
Resolution: ODR Policy Plan for India" has also been published, which emphasizes the need
for creative policies for the prevention, prevention, and resolution of disputes through digital
mechanisms. 15 This theme emphasizes the requirement for legal regulations in India regarding
digital dispute resolution and demonstrates the government's dedication to the process.

13
Indian Evidence Act 1872
14
SAMADHAN PORTAL, Ministry of Labor and Employment, available at https://samadhan.labour.gov.in/
15
HT Correspondent, ‘NITI Aayog releases report on online dispute resolution’, The Hindustan Times (30
November 2021)

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THE FIFTH SCHEDULE OF THE ARBITRATION ACT AND ITS IMPACT ON THE
ADJUDICATION OF BULK FINANCIAL DISPUTES ON ODR PLATFORMS16

The Fifth Schedule to the Arbitration and Conciliation Act, 1996 has made a significant
contribution to technological advancement in the management of mass disputes in India. The
amount in these disputes can range from 20,000 to 100,000, and they typically involve credit
card or loan default cases16. The Fifth Schedule is made up of 34 items that must be followed
regarding conflicts of interest in international arbitration16. The Fifth Schedule is intended to
promote arbitration's procedural and ethical values, according to Supreme Court rulings. The
Supreme Court has also made it clear that the adoption of the Fifth Schedule's ideals of
arbitration would result in technological advancements in the management of idealized
disputes16.

With this effort, the government has improved the handling of mass disputes brought against
people or entities looking for financial institution facilities on the ODR platform. According to
Supreme Court rulings, more interactive, fair, and fair procedures are being established in the
field of arbitration as a result of technological advancements. Thus, the Government has taken
a significant step towards technological reform in managing bulk disputes through the Fifth
Schedule to the Arbitration and Conciliation Act, 1996 which will help in facilitating the
processes of justice and conciliation in the society.

EXISTING TECHNOLOGICAL INFRASTRUCTURE IN INDIA REGARDING ODR

The Indian judicial system's technological infrastructure has resulted in notable advancements
in professionalism and efficiency, ensuring that the justice system is more easily accessible and
practical for society's citizens. The National Informatics Centre introduced the computerization
of the Supreme Court of India in 1990, marking the beginning of technological change in the
Indian judicial system. 17

The National Informatics Center Network (NICNET) has been essential in developing and
maintaining the judicial system's technical infrastructure in India. This network has allowed

16
Dormaan J Dalal, ‘The Fifth Schedule of the Arbitration Act and its impact on adjudication of bulk financial
disputes on ODR platforms’, The Bar and Bench (10 June 2023)
17
Shalini Seetharam and Sumati Chandrashekaran, ‘E courts in India: from policy formulation to
implementation’, Vidhi, available at : chrome-
extension://efaidnbmnnnibpcajpcglclefindmkaj/https://vidhilegalpolicy.in/wp-
content/uploads/2019/05/eCourtsinIndia_Vidhi.pdf

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for the integration of all High Courts and the exchange of case information and documents
between various courts18. The e-filing system has been enabled by NICNET, making it simple
for litigants and solicitors to submit documents electronically 18.

The LOBIS (List of Business Information System), which updates court cases in real-time
and includes the status of hearings and judgments, has also been implemented by NIC 19. As a
result, the judicial system will become more transparent and effective as both solicitors and
litigants will have access to this information without having to physically visit the courthouse.
Additionally, NIC has created mobile apps such as ‘M-Governance’ that let user’s access legal
resources from their tablets or smartphones. The way courts function has significantly
improved as a result of this technological development, which has also increased the justice
system's accessibility and convenience.

'Project e-Courts' is an important initiative to enhance judicial productivity both qualitatively

and quantitatively20. The project aims to make the delivery of judicial services affordable,
accessible, cost-effective, predictable, reliable, and transparent. Additionally, this project is
delivering "Litigant's Charter," a set of effective and timely citizen-centric services that will
enhance the justice delivery system.

With this, the "Integrated Case Management System (ICMS)" has opened the door for the
Indian judicial system to advance another step21. The system integrates the Supreme Court and
High Courts, enabling seamless e-filing across the nation and streamlining the legal process.
The system has helped the justice delivery system become more open, transparent, and
productive in addition to increasing efficiency and productivity.

Several initiatives have been put into place in several High Courts, such as Studio e-courts by
Patna High Court20, including those in Delhi, Punjab, Bombay, Andhra Pradesh, Karnataka,
and Allahabad; to make "e-filing" and the production of evidence on electronic platforms

18
National Information Center Network, available at https://www.nic.in/servicecontents/nicnet/
19
‘Use of Technology in Judicial Process and Alternative Dispute Resolution’ Lawctopus ( 13 November 2015),
available at: https://www.lawctopus.com/academike/use-technology-judicial-process-alternative-dispute-
resolution/
20
E-committee Supreme Court of India, Information and Communication Technology in Indian Judiciary,
available at: https://ecommitteesci.gov.in/project/brief-overview-of-e-courts-project/
21
‘PM Modi launches Supreme Court’s integrated case management system’, The Economic Times (10 May
2017)

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easier. This advancement in technology has greatly contributed to the convenience of the
judicial system, raising access and interest in justice.

The following are prevalent platforms for Online Dispute Resolution:

One such ODR platform is "CADRE," which offers a website-based platform to offer traders
excellent solutions22. To facilitate communication and clarify disagreements, the goal is to
convene a one-party forum and come to a resolution through mediation. Notifications are
acknowledged via email or WhatsApp when agreed upon, and if the disagreement cannot be
resolved by mutual consent between the disputing parties, electronic contact is made via video
call. This procedure allows for the quick and effective resolution of disputes because legal
decisions are received in 20 to 25 days. One notable company that uses this ODR model is the
online home rental startup NestAway22. Through CADRE, they are resolving tenant and rental
agreement disputes.

Another ODR platform that makes high-quality ADR services easily accessible and aids in
online dispute resolution is SAMA23. A total of 10,000 disputes between its customers have
been settled by ICICI Bank using the SAMA ODR platform, with payments ranging up to Rs
20 lakh24. Another significant example is CoDR, which works to quickly and effectively
resolve disputes by managing cases online through its Centre for Online Disputes Redressal24.
AGAMI also represents a new system, which seeks to make the process of dispute resolution
time-efficient and viable, and thereby encourage a better system of law and justice24.

FUTURE OF ONLINE DISPUTE RESOLUTION

An expert committee headed by former Law Secretary TK Vishwanathan has been appointed
by the Indian government to review the 1996 Arbitration and Conciliation Act and make
recommendations for changes25. This committee's goal is to adopt online demurrage
conciliation, which would allow for the technological advancement of both the arbitration and
conciliation processes. The committee is paying particular attention to how to use cutting-edge

22
Indulekha Arvind, ‘Online Dispute Resolution is beginning to find takers in India’, The Economic Times(12
January 2020)
23
Karan Singh, ‘India: Online Dispute Resolution (ODR): A Positive Contrivance To Justice Post Covid- 19’,
Mondaq (17 May 2020)
24
Astitva Kumar, ‘India’s top Online Dispute Resolution (ODR) startups’, ICMR available at:
https://icmcrmediation.org/indias-top-online-dispute-resolution-odr-startups-2/
25
Aiman J Chishti, ‘Union Government Constitutes Expert Committee For Reforms In Arbitration And
Conciliation Act’, Live Law (14June 2023)

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technologies like blockchain, artificial intelligence, machine learning, smart case management,
and digital communication infrastructure in the conciliation process. India has distinguished
itself as one of the top economies in recognizing the potential of ODR and the contributions of
different ODR players at the same time. It appears that the Indian government is committed to
rewriting arbitration law in light of technological advancements to usher in a new era. 25

Introduction of ODR by SEBI in the Indian Securities Market 26: The Securities and
Exchange Board of India (SEBI) issued a Circular on July 31, 2023, establishing Online
Dispute Resolution (ODR) as the primary method for resolving disputes in the Indian Securities
Market26. This decision follows the implementation of the Alternative Dispute Resolution
Mechanism (Amendment) Regulations, 2023, which significantly changed the dispute
resolution clause across various securities market regulations. 26 SEBI ODR Circular outlines
the dispute resolution process, including steps, ODR portal, arbitration, conciliation, escalation,
timelines, panel selection, and market participants' roles. 26

The SEBI ODR Circular aims to resolve disputes in securities market transactions through
Online Dispute Resolution (ODR) institutions, which can conduct time-bound online
conciliation and arbitration. These institutions adhere to the Arbitration and Conciliation Act,
of 1996 and utilize online/audio-video technologies. The circular establishes the provisions for
choosing and listing ODR institutions, ensuring high-quality standards in their operations.
ODR applies to disputes involving investors, clients, listed companies, registered agents, and
specified intermediaries or regulated entities in the securities market. Both listed companies
26
and clients can utilize ODR to address unresolved service requests or complaints.

The Circular mandates Market Infrastructure Institutions (MII) to associate with one or more
Online Dispute Resolution (ODR) institutions and establish a unified ODR Portal, under the
supervision of multiple MIIs. The ODR portal should be connected to the SEBI SCORES
portal/SEBI Intermediary portal. Enrollment on the ODR portal is mandatory for all Market
Participants, and they must complete the process within a specified timeline. The ODR portal
offers user-friendly features, allowing users to file complaints and upload necessary
documents. Users are kept informed about the status of their complaints and are directed to an

26
George Mathew, ‘How the online dispute resolution system announced by SEBI will work’, The Indian
Express( 7 August 2023)

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accredited ODR institution. The allocation of disputes among the impaneled ODR institutions
follows a market-wide round-robin system, ensuring fair and equitable distribution. 26

WHAT ARE THE OTHER ODR SYSTEMS ACROSS THE GLOBE?

Countries around the world have taken significant steps towards technological reform in
judicial processes by using ODR platforms.

United Kingdom: CASEMAN in the United Kingdom is part of the local county court
management system, which facilitates various functions, such as the creation of initial court
records, the issuing and monitoring of summons, and the storing of electronic copies of
evidence because lists are generated, records are updated, court diaries are maintained, and
other relevant documents and records are generated automatically.

Australia: Documents can be electronically lodged in the Federal Court of Australia and
electronically sealed, or stamped, at any time, from any location.

Canada: Canada has launched its online Civil Resolution Tribunal (CRT), which handles
property disputes of any amount in the province of British Columbia as well as small claims
disputes.

Rwanda: Rwanda is using the Electronic Filing System (EFS) to move towards paperless court
services.

CONCLUSION

While ODR has proven to be effective in many countries, its acceptance in India may face
unique challenges due to cultural and legal differences. It is human nature to resist change and
so far traditional methods of ADR have not been accepted. But efforts are being made in this
area as well. On June 6, 2020, NITI Aayog in partnership with Agami and Omidyar Network
India hosted the first major stakeholder meeting to advance online dispute resolution in India 27.
The meeting was attended by several senior judges, industry leaders, various secretaries,
ministries, and legal practitioners from across the country. The purpose of the meeting was to
discuss the potential benefits and challenges of implementing ODR in India, as well as to gather
insights and suggestions from key stakeholders. This collaborative effort highlights a growing

27
Ajmer Singh, ‘NITI Aayog decides to work with key stakeholders on Online Dispute Resolution framework’,
The Economic Times (28 June 2020)

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recognition of the importance of embracing technology-driven solutions in the field of dispute

resolution and signifies a positive step towards increasing acceptance and adoption of ODR in
India. 27

Not only do we need to change the policies and paradigms, but we also need to change our
mindsets to advance the ADR solution. We must foster the element that supports the
participants in ADR dialogue, empowers them to confront issues, and motivates them to move
in a constructive direction if we want to fully embrace and benefit from ODR. To actively
support and contribute to the ADR resolution process, we need to raise awareness, provide
expert resources to secure ADR platforms and related systems, and change social institutions,
government policies, and programs campaigning is required.

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