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