Online Dispute Resolution
Uploaded by
Ashutosh BagchiOnline Dispute Resolution
Uploaded by
Ashutosh BagchiONLINE DISPUTE
RESOLUTION (ODR)
• Online dispute resolution is a branch of dispute resolution which uses
technology to facilitate the resolution of disputes between parties. It
primarily involves negotiation, mediation or arbitration, or a combination
of all three. In this respect it is often seen as being the online equivalent of
alternative dispute resolution.
• However, ODR can also augment these traditional means of resolving
disputes by applying innovative techniques and online technologies to the
process.
• ODR was born from the synergy between ADR and ICT, as a method for
resolving disputes that were arising online, and for which traditional
means of dispute resolution were inefficient or unavailable.
• ODR is a wide field, which may be applied to a range of disputes; from
interpersonal disputes to consumer disputes or marital separation; to
court disputes and interstate conflicts.
• Considering the COVID-19 pandemic, on April 10, 2021, a handbook
on ODR, developed by Agami and Omidyar India, in association with
NITI Aayog was released.
Timeline for ODR development in India
• 2006: National Internet Exchange of India adopted .IN domain name Dispute
Resolution Policy (INDRP) which provided the ODR.
• 2011: Chennai hosted the 10th Annual International Forum on ODR.
• 2017: Ministry of Law and Justice issued a statement to urge the Government
agencies to resolve disputes through online arbitration.
• 2018: Ministry of MSME launched SAMADHAAN Portal to address delay of
payment disputes involving Micro and Small enterprises.
• 2019: E-ADR Challenge was launched to identity and support ODR start-ups.
• 2020: The Government of India launched the Vivaad se Vishwas Scheme for
efficient resolution of tax disputes through ODR.
• 2020: NITI Aayog established a committee under the Chairmanship of Justice
(Retd.) A.K.Sikri to broad-base the use of ODR in India.
• 2020: Chhatisgarh conducted the first virtual Lok Adalat.
SALIENT FEATURES OF ODR
• MANAGING TIME AND COST
ODR has the potential to reduce legal costs, by way of reduced time for
resolution and by doing away with the need for legal advice in select
categories of cases.
• FLEXIBLE NATURE
Compared to rigid Court procedures followed for ages, ODR encourages
speedy resolution in a versatile and informal way. It eliminates the need for
travel and synchronization of schedules.
• ENCOURAGES NEGOTIATIONS
ODR tools such as online negotiation and mediation are premised on
mutually arriving at an agreement, they make dispute resolution process
less adversarial and complicated for the parties.
• SIMPLE TO ACCESS
In accordance with the convenience and requirement of parties, ODR
can be accessed anywhere at any time where internet is accessible.
• STORING DATA
Document storage has been replaced by the ODR mechanism as one of
the most common problems faced in Indian courts.
PROBLEMS IN ODR
• LACK OF DIGITAL INFRASTRUCTURE
A pre-condition to ODR integration is robust technology infrastructure across the
country. This includes access to computers, smart phones and medium to high
bandwidth internet connection for at least the length of time it takes to conduct
meaningful hearings. Lack of such requirements is likely to disadvantage those that
have limited access to digital infrastructure.
• LACK OF DIGITAL LITERACY
According to the Ministry of Electronics and Information Technology, only 38% of
households in India are digitally literate. In urban areas, digital literacy is relatively
higher at 61% relative to just 25% in rural areas. Therefore, there is a need for
programmes that focus on boosting internet accessibility in rural areas combined with
dedicated initiatives to popularise basic skill sets required to access ODR services.
• OPERATIONAL PROBLEMS: PRIVACY & CONFIDENTIALITY CONCERNS
It includes online impersonation, breach of confidentiality by circulation
of documents and data shared during ODR processes, tampering of digital
evidence.
• ENFORCEMENT OF THE OUTCOME OF ODR PROCESS
Enforcement of arbitral awards in India is complex and burdensome. It
requires stamp duties in most of the States. The archaic requirement to
attach an e-Stamp certificate to the document creates barriers in an
otherwise end-to-end online process.
• LACK OF TRUST IN ODR SERVICES
This mistrust stems at several levels from feeling of doubt regarding
technology to questions regarding enforceability of ODR outcomes.
