Is India ‘ODR Mechanism’ ready?

Is India ‘ODR Mechanism’ ready?

Online Dispute Resolution (ODR) is a promising avenue! It represents the future. However, one may doubt about its effectiveness and acceptability in Indian laws. Do you share this concern? Fear not, we can put your doubts to rest.

Firstly, ODR goes beyond mere technological integration, such as setting up hearings online, and involves the active use of technology to assist in dispute resolution. It starts with the utilization of tools like video conferencing for conducting hearings and electronic document sharing for filing relevant documents and can go upto taking the form of automated dispute resolution, script-based solutions, and curated platforms tailored to address specific categories of disputes. While ODR shares its roots with Alternative Dispute Resolution (ADR), its advantages go beyond what can be achieved with mere e-ADR or ADR facilitated by technology. In essence, ODR combines advanced technology with dispute resolution methods to offer efficient and effective solutions for resolving a wide range of conflicts.

In India, the legal framework, particularly Section 89 of the Code of Civil Procedure, 1908 (CPC), actively encourages the use of alternative dispute resolution methods among disputing parties. Order X Rule 1A of CPC empowers the court to direct parties in a legal case to opt for any Alternative Dispute Resolution (ADR) approach to resolve their conflicts, which may include ODR.

Now, let’s delve into the specifics:

ODR aligns with the provisions of the Information Technology Act of 2000 (IT Act). The IT Act, in Section 4 and 5, grants legal recognition to electronic records and electronic signatures. This recognition is pivotal in facilitating the comprehensive digitization of justice delivery processes from start to finish. It empowers the legal system to embrace technology and enables the seamless integration of electronic records and signatures, making the justice system more efficient and accessible in the digital age.

Further, The Indian Evidence Act, 1872, specifically in Section 65-A and 65-B, acknowledges electronic evidence and outlines conditions for its admissibility. These provisions serve as valuable guidance for regulating the sharing of virtual documents and conducting virtual hearings. They offer a legal framework for incorporating electronic evidence into legal proceedings, ensuring transparency and reliability in the digital exchange of information.

The Indian Arbitration and Conciliation Act of 1996 plays a crucial role in the context of ODR. A fundamental prerequisite for ODR is the clear and unequivocal agreement of the involved parties to resolve their disputes through online means. The Act explicitly states that parties have the freedom to select the venue for arbitration hearings, and this choice can encompass online platforms.

In parallel, the introduction of the Digital Personal Data Protection Act, 2023, will effectively address the confidentiality and security issues that often accompany ODR processes. This would serve to enhance ODR’s legitimacy and long-term acceptability within the legal system.

While the existing legislations in India provide a foundational framework towards ODR, there is room for further development in terms of legislative preparedness. At an initial stage, amendments could be considered within certain legislations (such as The Family Courts Act, 1984, Commercial Courts Act, 2015, Industrial Relations Code, 2020 etc.), which provide for the use of ADR, to explicitly acknowledge and endorse ODR. By recognizing and accommodating ODR within the legal framework, India can further advance its commitment to embracing innovative dispute resolution methods in the digital age.