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Online Dispute Resolution Mechanism In Indian Judiciary

This article firstly introduces ADR mechanisms and it's need. Further main concern of this article is online dispute resolution mechanism. Articles explains about its functioning in India and the challenges to it along with it's benefits. Further the article explains the status of ODR around the world and through various examples and explains current situation of ODR in India.

Online Dispute Resolution Mechanism in Indian Judiciary
Desire for quick justice brought in the concept of alternative dispute resolution. The traditional mode of resolution of dispute i.e. litigation has been proven lengthy process which has unnecessarily overburdened Indian judiciary and has led to delay in justice being delivered. Alternative dispute resolution provides different mechanisms for resolution of disputes. These mechanisms include arbitration, conciliation, mediation etc.

The first formal statute relating to the subject of arbitration in India was the Indian Arbitration Act, 1899, applicable only to Presidency towns of Madras, Bombay and Calcutta.[1] Furthermore various other developments took place in the field of alternative dispute resolution. If we look up at the enactment of The India International Arbitration Centre Act in 2019 which enabled the establishment of an institution of national importance, namely the India International Arbitration Centre for creating an independent and autonomous regime for institutional arbitration. Mediation Bill of 2021 another mode of ADR which is more informal and facilitates negotiations between the disputant parties, culminating in a settlement. [2]

Since now we have a basic picture of alternative dispute resolution mechanism in our head we can directly come to the theme of this blog which deals with online dispute resolution mechanism in our Indian judiciary, which basically means resolution of disputes outside the court with the help of technology. It's done through different modes of ADR such as arbitration, conciliation, negotiation or mediation as mentioned earlier. Main objective of online dispute resolution is to overcome the challenges faced in tradition alternative dispute resolution or usual litigation to resolve disputes. Online dispute resolution enables an individual or an organisation to resolve their disputes from anywhere at even less cost and less time as consumed in tradition recourse of alternative dispute resolution or litigation.

Rise of online dispute resolution can be seen alongside e-commerce, since dispute which originates in cyberspace should be resolved completely online. [3] we understand that the Indian judiciary is under tremendous pressure due to pendency of cases. Inadequate infrastructure could be one reason behind overburdened courts.

We need to take the leverage of technology inorder to benefit Indian judiciary. To view existing technological infrastructure in Indian judiciary system we need to understand NICNET. In 1990, the National Informatics Centre took up computerization of Supreme Court of India. All High Courts have been computerised and interconnected through NIC's satellite-based-computer-connection network NICNET.[4] ODR is the system of resolution of disputes, particularly small- and medium-value cases, using digital technology and techniques of Alternate Dispute Resolution.

The use of Online Dispute Resolution mechanism has started to gain prominence day by day. Joint reading of various provisions including Code of Civil Procedure 1908, Information Technology Act 2000, and Indian Evidence Act 1872, Arbitration and Conciliation Act 1966, provides resolution of dispute through ADR and it's applicability in online platform but none of these provisions provides clear recognition of ODR. Covid 19 accelerated the ODR usage due to the constrains.

Understanding the benefits that India will enjoy upon proper implementation and usage of ODR. Online dispute resolution mechanism will help India overcome jurisdictional issues. It eliminates geographical barriers. If we compare it to the rigid court procedures which has been followed since ages, Online Dispute Resolution will provide speedy resolution, along with the benefit of speedy resolution it eliminates the need for travel and synchronisation of schedule. Which means the dispute resolution through ODR mechanisms will be done in accordance with the convenience and requirement of the parties as ODR is easily accessible anywhere with the help of internet. Improves the efficiency and productivity of dispute resolution.

Looking at ODR tools such as online negotiation and mediation, it makes the process of dispute resolution less complicated for both the parties. This is an eco-friendly process as the paper-based trail is minimised thus it eliminates the most common issue of document storing faced by India. Looking up to these benefits being ensured by ODR it can be concluded that ODR Delivers a quick, economical, and effective solution to disputes.

But currently implementation of ODR has many challenges which includes Lack of awareness amongst the masses along with lack of digital literacy. According to the Ministry of Electronics and Information Technology, only 38% of households in India are digitally literate. This percentage of digital literacy is slightly higher in urban areas i.e. 61% compared to rural areas I.e. 25%. Internet India Report 2019, women constitute only 1/3rd of internet users in India. Looking at such reports it brings major challenge to ODR. Since mass population lacks necessary digital literacy ODR cannot present all it's benefits as accessibility will be relatively very low. Stagnant or no technology system to support ODR because a pre-condition to ODR is robust technological infrastructure across the country which includes access to smart phones, computers along with high bandwidth internet connection.

The lack of such infrastructure will disadvantage those who have limited or no access to digital infrastructure. Insufficient legislative and judicial recognition of ODR. Implementation of ODR brings up concern regarding privacy and confidentiality as ODR mechanism is prone to breach of privacy by circulation of documents and data shared during ODR processes, it could even lead to tampering of digital evidence. This concern brings up mistrust regarding ODR mechanism along with question regarding it's feasibility and outcomes. Now inorder to ensure feasibility and enforcement of online dispute resolution mechanism various steps need to be taken which starts with basic steps to increase digital literacy and digital infrastructure. Followed by a necessary regulatory model by India to protect the rights of the users including amendments in the existing legislations to incorporate ODR.

To understand current situation of ODR in India we can look up at various examples where concept of ODR was used for speedy redressal and resolution of disputes. Online Consumer Mediation Centre which was started as a pilot project of Ministry of Consumer Affairs, this platform deals with resolution of e-commerce consumer disputes. [5]They provide the resolution both in-person and through online mediation where a mediator is appointed by them and parties can conduct online negotiations, proceedings are conducted online. Anothe4r such example is of UPI, The National Payments Corporation of India ("NPCI") issued a circular on April 11, 2022, stating that all the UPI participants must implement ODR systems to resolve disputes and grievances of failed transactions.

This instruction applied to all participants such as banks and mobile applications. Interestingly, the Reserve Bank of India ("RBI") also issued a circular in August 2020 and mandated all authorised Payment System Operators ("PSOs") to implement ODR systems by January 2021.[6] We can even look up at RTI online , The Department of Personnel & Training, Government of India, has built a portal for filing Right to Information applications and first appeals online with respect to ministries, departments, and other public authorities of the central government. The updates regarding the application/first appeal are communicated via email and SMS and the orders are uploaded on the portal itself.

Now we can understand how ODR works around the world. New York was the first one to implement ODR. The success of private ODR led to various government implementing it. The adoption of ODR in New York was a success as it resulted in reducing settlement time by 85%, as well as an impressive 66% settlement rate within 30 days of the submission of the dispute. Canada had introduced its online Civil Resolution Tribunal (CRT) which deals with small claims disputes, as well as property issues of any amount in the province of British Columbia. In the Australian Federal Court, documents are filed electronically on the e Lodgment system, at any time, from anywhere. They are then sealed, or stamped, electronically.

Rwanda can be seen using the Electronic Filing System (EFS) to move towards paperless court services. The State Courts in Singapore have introduced CJTS which is an electronic case filing and management system. This allows parties involved in small claims disputes to file claims and access court e-services from the comfort of their homes and offices.

There might be a doubt that why India should adopt ODR, to explain this we need to look at the benefits that ODR provides which has already been discussed earlier. Courts in India are already overburdened with cases. As said justice delayed is justice denied , we need to accelerate the process of justice being delivered and ODR promises to do that along with the convenience of both the parties.

Originally, arbitration was intended as the alternate option available to court litigation for various kinds of disputes. But with the passage of time today, this method itself has become cumbersome and expensive. So enforcement of ODR is a smart move as it is more promising, feasible and economical as well but to reach this goal various hurdles need to be tackled such as digital literacy, digital infrastructure etc as discussed earlier.

End Notes:
  1. Legal affairs, https://legalaffairs.gov.in/sites/default/files/Arbitration_Mediation.pdf, last visited on 25 May 2024
  2. https://legalaffairs.gov.in/sites/default/files/Arbitration_Mediation.pdf, last visited on 25 May 2024
  3. Pre solve 360, Unlocking Justice: Online Dispute Resolution in India (presolv360.com), last visited on 25 May 2024
  4. Drishti IAS, https://www.drishtiias.com/daily-updates/daily-news-editorials/online-dispute-resolution-mechanism-in-indian-judiciary, last visited on 26 May 2024
  5. Pre solve 360, Unlocking Justice: Online Dispute Resolution in India (presolv360.com), last visited on 1 July 2024
  6. Pre solve 360, Unlocking Justice: Online Dispute Resolution in India (presolv360.com), last visited on 1 July 2024

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