Use of technology in ADR: A case for Online Dispute Resolution (ODR)

Introduction of Alternative Dispute Resolution (ADR) in dispute redressal mechanism is a revolutionary step in itself. The primary objective of alternative dispute resolution (ADR) is to resolve disputes between parties in a friendly manner with minimal involvement of the judiciary. ADR is more cost-effective, faster, and more accessible than traditional dispute resolution methods, such as litigation. Recently, technology has penetrated in the ADR space, and has led to the birth of Online Dispute Resolution Platforms.

ODR is a method of resolving disputes using technology, specifically the internet and other digital communication tools. It is used to settle disputes that arise in a variety of contexts, including e-commerce transactions, online services, and other forms of online interactions. The benefit is that technology plays a significant role in facilitating faster communication and helping prevent and manage disputes.

ODR typically involves a third-party neutral platform that facilitates communication between the parties and helps them reach a mutually acceptable resolution through the use of technology.  These platforms make use of various tools such as chat rooms, video conferencing, and electronic filing systems to enable the parties to exchange information and negotiate a settlement.

Origin of ODR

Online Dispute Resolution (ODR) platforms have been in development since the early 1990s when the internet began to gain widespread use. However, the use of ODR platforms has become more prevalent in recent years as more businesses have moved their operations online, and as consumers have become more comfortable with using technology to resolve disputes.

One of the earliest ODR platforms was created in the mid-1990s by the National Centre for Automated Information Research (NCAIR) in the United States. This platform was designed to handle disputes related to online purchases, such as those made through auction sites like eBay. Other early ODR platforms were created by organizations such as the American Arbitration Association and the International Chamber of Commerce.

In the early 2000s, several countries began to implement ODR platforms for their court systems. For example, in 2002, the Canadian government launched the Cyber Tribunal, an online court designed to handle disputes related to e-commerce transactions. In the same year, the European Union launched an ODR platform to help resolve cross-border consumer disputes.

Since then, many other countries and organizations have implemented ODR platforms, and the technology has continued to evolve. Today, there are a wide variety of ODR platforms available, ranging from simple chat-based systems to more sophisticated platforms that use artificial intelligence and machine learning to resolve disputes.

Advantages over traditional ADR

ODR offers several advantages which include:

Accessibility: Accessibility is one of the major advantages of ODR. ODR is more accessible than traditional dispute resolution methods because it can be conducted entirely online, which eliminates the need for physical presence. This means that parties can participate in the process from anywhere in the world as long as they have an internet connection. This is particularly beneficial for individuals who live in remote areas or who are physically unable to travel to a physical location.

Cost-effectiveness: ODR platforms offer several cost-saving advantages over traditional dispute resolution methods. One major advantage is the reduced travel costs, as there is no need for parties to travel to a physical location. This eliminates costs associated with transportation, lodging, and meals.

Automation: In addition, ODR platforms automate many of the administrative tasks associated with dispute resolution, such as document management and scheduling. This reduces the need for administrative staff, saving on administrative costs.

Online Repository: ODR platforms typically provide a clear and detailed record of all communications and actions taken during the dispute resolution process, available at one single place. This includes records of messages exchanged between parties, documents uploaded, and any decisions made by the mediator or arbitrator. This ensures that parties have a clear understanding of what has taken place during the dispute resolution process. Some ODR platforms even have built-in features that enable parties to track the status of their case in real-time.

ODR in India

ODR is already in full swing in most of the developed economies but India is not far behind others. With the increasing adoption of technology and the growing reliance on ADR mechanisms, the future of dispute resolution in India appears to be headed towards a more technology-driven and streamlined approach through ODR. Adoption of ODR platforms for resolving dispute outside the court has been getting a lot of traction lately and the much-needed push eventually came in the form of Covid-19 which literally forced not only parties in disputes to adopt ODR but also Indian judiciary and government.

The Supreme Court of India has been instrumental in laying the groundwork for the introduction of ODR in the country. The court has recognized the validity of using video-conferencing as a means of taking evidence and testimony from witnesses, as demonstrated in the case of State of Maharashtra v Praful Desai. Further, the Supreme Court of India has also recognized the validity of online arbitration agreements in the cases of Shakti Bhog v Kola Shipping and Trimex International v Vedanta Aluminium Ltd. The court held that such agreements are valid as long as they comply with certain provisions of the Information Technology Act (IT Act) 2008, the Indian Evidence Act, 1872, and the Arbitration and Conciliation Act, 1996.

Further, India’s apex public policy think tank, NITI Aayog has recognized the potential of ODR and its ability to provide a faster and cost-effective solution for dispute resolution. In 2018, NITI Aayog released a concept note titled "Online Dispute Resolution: A Vision for India," which highlights the benefits of ODR and suggests ways to promote its adoption in the country. Indian government’s efforts in promoting ODR have played a crucial role in creating awareness and building momentum towards the adoption of ODR in India.

The simultaneous movement to integrate technology in dispute resolution and reliance on ADR mechanisms is a clear indicator that India is gearing itself to logically transition towards ODR.

Way ahead

Although while going through information available on internet regarding ODR paints a very rosy picture but there still exist several challenges before it can be widely adopted. Issues like lack of digital infrastructure, widespread unawareness, unwarranted scepticism, privacy and confidentiality concerns, archaic legal process and uncertainty regarding enforcement of ODR outcomes possess serious challenge in the widespread adoption of ODR as the first recourse upon arising of any dispute which can be settled by arbitration or conciliation. In order to make ODR a nationwide success the efforts must not only come from bench but from bar also as the mechanism of dispute resolution of the client rests largely in the hands of counsels.

Overall, Online Dispute Resolution (ODR) is a game-changer in the field of dispute resolution. It offers a faster, cost-effective, and accessible alternative to traditional dispute resolution methods. ODR is especially beneficial in a country like India, where access to justice is often limited due to factors such as geography and cost. The Indian government has recognized the potential of ODR and has taken steps to promote its adoption, such as recognizing the validity of online arbitration agreements and developing a legal and regulatory framework for ODR.

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