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Strengths and Challenges in Online Dispute Resolution System

Strengths and Challenges in Online Dispute Resolution System 



ODR has many benefits over the conventional system of courts in which parties have independence over proceedings. Such as the following: 

1. Managing Time and Cost: 

ODR eliminates the need to fly and greatly reduces the cost. It facilitates better time and cost management, greater procedural versatility, and more innovative solutions. 

2. Informal and Flexible: 

Compared to rigid court procedures followed for ages, ODR encourages speedy resolution in a versatile and informal way. 

3. Confidence and Trust: 

Due to its rapid access to justice, flexibility, time, and cost management that facilitates e-commerce and overcomes geographical barriers, ODR increases confidence and trust in the e-commerce environment. 

4. Communication asynchronously: 

In comparison to impulsive reactions that can often take place in real-time face-to-face mediation discussions, asynchronous Internet communications have the benefit of being edited. 

5. Videoconference Communication: 

Lodder and Zeleznikow argued that it can arise in conflicts in which the parties' emotional interest is so strong that it is better that they do not see each other. Due to the lack of face-to-face contact, it has been taken as the most important drawback of ODR. But it has been suggested that in online conflict mediation, video conferencing is an "obvious solution to the lack of face-to-face encounters." 

6. Simple to Access: 

In accordance with the convenience and requirement of the parties, ODR can be accessed anywhere at any time where the internet is accessible. 

7. Storing Data: 

Document storage has been replaced by the ODR mechanism as one of the most common problems faced in Indian courts, where data storage is protected to store and transfer documents as and when necessary without any hassle. 

  • Challenges: 

In India, ODR faces various obstacles to its development, such as a lack of human contact and communication, a lack of literacy, insufficient confidentiality and secrecy of proceedings, a lack of confidence and trust, a limited range of disputes, barriers to culture, education, and language, and a negative attitude of lawyers. But the admissibility of the ODR is one of the main and critical problems. 

Challenges with respect to admissibility: 

A) Writing and Mutual Consent:

Mutual consent of the parties is necessary for triggering the ODR procedure, whether through an explicit contractual clause or through a separate mutual agreement between the parties, otherwise, any decision made impartially is not legally legitimate and binding on the parties. Another important condition is that the agreement must be in writing between the parties. In compliance with Article 2 of the New York Convention and Article 7(2) of the UNCITRAL Model Rule, the agreement must be in writing. At the same time, though, the New York Convention remains silent on agreements reached by electronic communications. Whereas the arbitration agreements entered into by electronic communications are accepted by UNCITRAL Model Law and India has adopted its 2015 Amendment to the 1996 Act. 

B) Place of trial:

The place of arbitration, which is a central factor on which various legal ramifications depend, is geographically decided in the adjudicatory process. If proceedings are held completely electronically with the parties and impartial in different locations, it seems prima facie difficult to decide the place of proceedings. This finding led some researchers to believe that virtual arbitration does not have a role. 



This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.

  • Strengths
  • Challenges
  • Challenges with respect to admissibility

BY : Shivani Kinniwadi

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