Introduction to ODR:

Technology plays an immense role in our day-to-day lives, transforming the world from paper to e-files. In the past, the dispute resolution system was confined to bricks and mortar only, but technological advancements have led to a new evolution in the system, enhancing the efficiency of delivering justice. Traditionally, communication, whether verbal or non-verbal, is essential in every aspect of life.

However, the question arises as to whether effective communication requires physical presence. Previously, the dispute resolution system required the physical presence of parties in court, which was time-consuming and cost-efficient. The Online Courts and the Future of Justice raises the question: Is a court a service or a place?[1] Do we need a physical location to deliver justice and resolve disputes, or is a service sufficient? This challenge of providing service extends beyond just the courts.

To address this, an alternative service mode called Alternative Dispute Resolution (ADR) has evolved. The evolution of technology brings a new notion of dispute resolution in the justice system called Online Dispute Resolution (ODR), which is a modern and digitalized concept of traditional ADR, where disputes are addressed through electronic communication without physical presence in court, such as via video conferencing or other online methods.

ODR focuses on delivering service, rather than the physical appearance of parties, simplistically understood as ODR or E-ADR, enabled through technology. ODR can be used to address dispute avoidance, dispute containment, and dispute resolution.[2] Online Dispute Resolution (ODR) in India is gaining recognition day by day. It improves the legal health of society by being less time-consuming, cost-effective, and convenient and quick. It offers a customizable process that is comfortable for both parties and does not require the physical appearance of the parties at any place.

During the COVID-19 pandemic, the judiciary has adapted to using technology for resolving disputes by incorporating video-conferencing for remote participation in hearings. Initiatives such as the eCourts mission mode projects have been implemented to ensure access to justice. The judicial system has been at the forefront of adapting to technological needs during the COVID-19 outbreak. The transformation of Lok Adalats into an online version, known as e-Lok Adalats, has demonstrated the convenience and affordability of the ODR system.

Legal Framework of ODR in India:

At its forty-third session, the United Nations Commission on International Trade and Law (UNCITRAL) [3]deliberated on the principles for establishing rules to support a global Online Dispute Resolution (ODR) mechanism for cross-border electronic commerce transactions. Such a system would provide fairness, efficiency, affordability, and transparency, boosting consumer confidence and the growth of E-Commerce worldwide. The system establishes fundamental guidelines for global online dispute resolution within the regime of electronic commerce, including procedural rules, required information, and ODR providers.

Furthermore, at the UNCITRAL forty-ninth session, technical notes on Online Dispute Resolution for E-Commerce Transaction [4]were discussed to aid ODR administrators, ODR platforms, neutrals, and the parties involved, ensuring that ODR systems incorporate the principles of neutrality, self-governance, efficiency, effectiveness, due process, affordability, accountability, and transparency.

The Indian legal framework has well established the legal foundation of the E-ADR or ODR, although there is no such express provision of ODR and also not explicitly restricting the use of the same. Therefore, adhering to the legal principles that what is not forbidden is permitted in the eyes of the law—the Indian legal system provides space for ODR.

The Indian legislation, through Section 7 of the Arbitration and Conciliation Act, 1996, allows the formation of arbitration agreements by a variety of modes of communication, including electronic means of communication, which serves as a record of the agreement. Furthermore, the Supreme Court has observed that the use of technology in the arbitration process is legally valid in the case of Shakti Bhog v Kola Shipping[5], and in Trimex International v Vedanta Aluminium Ltd.[6] The Consumer Protection Act, 2019: Section 74 of the code, does not explicitly mention Online Dispute Resolution (ODR) in India.

It directs the State Government to establish the consumer mediation cell in each of the District Commissions and State Commissions of the state and the Central Government to establish the consumer mediation cell in the National Commission and each of the regional benches and also in Chapter V of the same statute, it encourages the parties to mediate at any stage during the process. Establishing electronic commerce entities to handle internal grievance mechanisms within their associations, the Consumer Protection Act (E-Commerce) Rules, 2020[7], formed under the Consumer Protection Act, 2019, lay the foundation of online dispute resolution (ODR). [8]

Another key legislation, Section 89 of the Code of Civil Procedure, 1908, allows the court to direct the parties to a lawsuit and gives them the authority to select any form of alternative dispute resolution (ADR) to resolve disputes between the parties. Thus, the scope of the provision is broad enough to include ODR as well. Furthermore, Sections 4 and 5 of the Information Technology Act, 2002, read with Sections 65-A and 65-B of the Indian Evidence Act, 1872, established the legal recognition of ODR through the legality of electronic evidence and digital signature which can be admissible under the Indian legal system.

The precedents upheld the legality of electronic communication through various cases, such as the Supreme Court in the case of the State of Maharashtra v. Dr. Praful B. Desai[9], which established that the use of video conferencing is permissible to record the witness statement. Hence, it is reasonable to conclude that the Online Dispute Resolution (ODR) process is well-recognized within the legal framework of the Indian legal system. This also ensures that the E-ADR process not only ensures convenience and cost-effectiveness but also enhances efficiency in the Indian legal system.

Challenges to ODR in India:

The evolutionary phase of the ODR creates many barriers and hindrances in the implementation of a successful ODR system. Though the process of ODR is very efficient and effective in dispute resolution, it holds several challenges that need to be addressed for the effective implementation of ODR. These challenges are as follows:

• Cultural Challenges - Traditionally, the process of resolving disputes was confined to the four walls of judicial administration, and the process of the judiciary was often delayed and expensive due to multiple reasons. Despite the drawbacks, people get used to it and they rely more on courts. However, the concept of alternative dispute resolution (ADR) mechanisms is not widely embraced, making it challenging for most individuals to contribute to the field of online dispute resolution systems. This is primarily due to a lack of confidence and trust in ADR, as most people are more accustomed to relying on the court system.
   
• Lack of Digital Infrastructure - A primary condition for the successful implementation of ODR is well-acknowledged information and technology infrastructure across the country, which allows for the use of computers, smartphones, and the internet. It is one of the major problems in India that many individuals are not familiar with internet facilities and digital infrastructure, which are essential for the development of the ODR platform.
   
• Lack of Digital Literacy - Digital literacy is another essential condition for the development of the ODR platform. In India, many people have access to the internet, computers, and smartphones, but only a few of them know about digital literacy. It is because of the lack of guidance by the authorities to raise awareness of the essential abilities required to access ODR. According to data from the Indian Telecom Services Performance Indicators, at the end of March 2024, there were 1,199.28 million internet users in India; however, the internet penetration rate in rural areas was only 533.90 million, compared to 665.38 million in urban areas at the same time in 2024. Therefore, to facilitate the ODR platform's adoption, it is imperative to improve internet accessibility in rural areas.
   
• Lack of Awareness Regarding ODR - Online dispute resolution (ODR) is an advanced form of ADR that resolves disputes through electronic means. However, apart from the ADR process, which is already familiar to the people, it is essential to take the initiative to spread awareness regarding the ODR platform. Since ODR is still in its infant stages, the lack of awareness of ODR may lead to the low progress of its accessibility in the ODR process. As a result, it would be difficult to gain the comfort and trust of the people in the ODR and hence, fail to accustom them to the ODR. Therefore, it is important to create a body or systematic campaigns that provide awareness about the ODR platform and promote its continued usage.
   
• PSUs and the Government's Roles in ODR - The public sector undertakings (PSUs) and the government play a vital role in India. It is important to adopt the ODR platform to settle disputes at the inter and intra-governmental levels. By adopting ODR, the government and the PSUs can significantly reduce the burden on courts. Therefore, it is essential to train and empower the government and PSUs to effectively participate in the process of ODR and ensure its successful implementation.

Opportunities for ODR in India:

In a developing country like India, th3 online dispute resolution (ODR) is still in its initial stages and facing hurdles that have already been discussed above. Despite being in its primitive stage, it proved to be an effective platform to facilitate the disputes of consumers. Additionally, the provisions of the Consumer Protection Act, 2019, the Indian Evidence Act, 1872, the Arbitration and Conciliation Act, 1996, and the Information Technology Act, 2000 have upheld the legality of the mechanism of ODR.

It ensures access to justice and equity without any geographical limitation through the advancement of ODR technology not only in the urban areas but also in the rural areas of India and provides fair justice to each and every aggrieved party with effective solutions. It focuses on the promotion of the eco-friendly system of the Indian judicial system by providing a paperless system and saving 1.33 million trees and 10 billion litres of water every single year.

Through these initiatives, the ODR technology curbs climate change and makes the judicial system more eco-friendly. Moreover, it reduces the problem of time management by providing online accessibility to the parties and makes it cost-free by the cancellation of mandatory traveling to the court which saves the time of the consumer and thereby, ensures speedy access to justice.

The ODR platform provides a non-confrontational mechanism to the parties involved in the disputes in which there will be no physical appearance of the parties required to adjudicate the dispute. Furthermore, it ensures neutrality between the parties as there will be several disputes in which one party might have small enterprises and the opposite party might be a global entity. Therefore, in this situation, the counsel in ODR ensures to maintain equal balance between both parties without being biased toward one party.

It also facilitates the process of recording the entire pleadings of disputes including written and oral statements. Therefore, ODR is a platform that is not only an easier process to access justice, but also an economically feasible, speedy access, curbing environmental concern, a cost-free, non-confrontational, and less time-consuming mechanism that creates an effective opportunity for a more efficient and transparent dispute resolution in India.

Conclusion:
The future of online dispute resolution (ODR) in India has the potential to dispose of the high pendency of cases in the traditional courts and tribunals. In the past year, information and communication technology (ICT) innovations in India have unlocked the door for the adoption of the ODR system. It plays an immense role in the process of making an efficient and accessible dispute resolution through its ease of doing business approach. It can increase the efficiency of the Indian judicial system by providing equity, fairness, and access.

On the other hand, the involvement of AI and ML tools in the ODR system improves the legal health and efficiency of the system and offers curative dispute resolution solutions. In most states, like Chhattisgarh, Gujarat, Rajasthan, Delhi, Jharkhand, Jammu and Kashmir, and Karnataka, and several countries, E-Lok Adalats are conducted through video and audio conferencing to resolve disputes which shows the adaptability of ODR across India and that also curb geographical limitations.

It is essential that all individuals have access to justice through ODR, which delivers timely justice, resolves disputes efficiently, and reduces the burden on the judicial system to make the system balanced and effective. The adaptation of ODR in society and legal recognition in the dispute resolution system through its advantages can increase the exponential growth of the ODR system. Therefore, it can be concluded that ODR is a very feasible approach to resolving disputes. It facilitates consumers to resolve their disputes beyond the geographical limitation and encourages cross-border disputes.

End Notes:

1. Richard Susskind, The Future of Courts, The Practice (October 15, 2020), https://clp.law.harvard.edu/knowledge-hub/magazine/issues/remote-courts/the-future-of-courts/
2. Ibid
3. United Nations Commission on International Trade Law Forty-third session, Possible future work on online dispute resolution in cross-border electronic commerce transactions, United Nations General Assembly (21 June-9 July 2010), https://documents.un.org/doc/undoc/gen/v10/539/85/pdf/v1053985.pdf
4. United Nations Commission on International Trade Law Forty-ninth session, Technical Notes on Online Dispute Resolution, United Nations General Assembly (27 June-15 July 2016), https://documents.un.org/doc/undoc/gen/v16/021/29/pdf/v1602129.pdf
5. Shakti Bhog v Kola Shipping (2009) 2 SCC 134
6. Trimex International v Vedanta Aluminum Ltd 2010(1) SCALE574
7. Consumer Protection (E-Commerce) Rules, 2020 (10 November 2020), https://consumeraffairs.nic.in/sites/default/files/E%20commerce%20rules.pdf
8. Justice (Retd.) AK Sikri, Designing the Future of Dispute Resolution THE ODR POLICY PLAN FOR INDIA, NITI Aayog (October 2021), https://www.niti.gov.in/sites/default/files/2023-03/Designing-The-httpsFuture-of-Dispute-Resolution-The-ODR-Policy-Plan-for-India.pdf
9. Maharashtra vs Dr. Praful B. Desai (2003) 4 SCC 601
10. The Indian Telecom Services Yearly Performance Indicators 2023-2024, Telecom Regulatory Authority of India, (14th August, 2024), https://www.trai.gov.in/sites/default/files/Report_14082024.pdf