GS-2: Governance, Dispute Redressal Mechanisms and Institutions.

GS-3: S & T ,Developments and their application in everyday life

Key Phrases: Technology and Innovation, effective access to justice, avoidance, containment and resolution, Singapore Convention

Why in News:

• NITI Aayog has rolled out a report giving recommendations that can help make India a world leader in using technology and innovation through Online Dispute Resolution (ODR) for effective access to justice for every individual.
• The report is a culmination of the action plan made by a committee constituted at the peak of the Covid crisis by NITI Aayog on ODR in 2020 and chaired by Supreme Court Justice (Retd) AK Sikri.

Recommendations given in NITI Aayog Report on ODR

The report recommends measures at three levels to tackle challenges in adopting ODR framework in India:

• Structural Level: It suggests actions to increase digital literacy, improve access to digital infrastructure and train professionals as neutrals to deliver ODR services.
• Behavior Level: It recommends the adoption of ODR to address disputes involving Government departments and ministries.
• Regulatory Level: It recommends a soft-touch approach to regulate ODR platforms and services. This involves laying down design and ethical principles to guide ODR service providers to self-regulate while fostering growth and innovations in the ecosystem.

Online Dispute Resolution:

• ODR is the resolution of disputes, particularly small- and medium-value cases, using digital technology and techniques of ADR, such as arbitration, mediation, conciliation and mediation.
• It refers to the process of using technology for dispute avoidance, containment and resolution outside the traditional court system.
• As a dispute resolution avenue it can be provided both as an extension of the public court system and outside of it.
• World over, the potential of dispute resolution mechanisms, especially through technology, is being recognized. Increasingly, ODR has received impetus across Government, businesses and even the judicial processes to tide over the constraints due to Covid-19.

Types of ADR

• Arbitration
  • In this, the dispute is submitted to an arbitral tribunal which makes a decision (called an “award”) on disputes that are generally binding on the parties.
  • It is less formal than a court trial and rules of evidence are somewhat relaxed.
  • Generally, there is no right to appeal against the arbitrator’s decision.
  • Barring a few measures, there is very little scope for judicial intervention in the arbitration process.
• Conciliation
  • A non-binding procedure in which an impartial third party, the conciliator, assists the parties to try to reach a mutually acceptable resolution of the dispute.
  • It is a less formal type of arbitration where parties are free to accept or reject the recommendations of the conciliator.
  • If both parties accept the settlement, it is final and binding on the parties.
• Mediation
  • Here, an impartial person called a “mediator” helps the parties to reach a mutually acceptable resolution.
  • The mediator himself does not decide on the dispute but helps the parties communicate so they can try and settle the dispute by themselves.
  • Hence, the control of the outcome in mediation is with the parties in dispute.
• Negotiation
  • This is a non-binding procedure in which discussions are initiated between the parties without the intervention of the third party.
  • It is the most common form of ADR.
  • The negotiation occurs between friends, families, businesses, non-profit organizations government branches, among nations, etc.
• Lok Adalat
  • This is an interesting feature of India’s legal system coming from the Legal Services Authorities Act, 1987 to encourage out-of-court settlements.
  • Lok Adalat (people’s court) is an informal setting that facilitates negotiations in the presence of a judicial officer where there are no undue legal technicalities.
  • The order of a Lok Adalat is final and is deemed as a decree of a civil court. The order is not appealable in a court of law.
• Singapore Convention:
  • The Convention will be an important instrument for the facilitation of international trade and the promotion of mediation as an effective method of resolving trade disputes.
  • As it is a binding instrument, is expected to bring certainty and stability to the international framework on mediation, thereby contributing to the Goal 16 of the Sustainable Development Goals.
  • The harmonized and simplified framework will save time and costs in legal proceedings.

Government Initiatives:

• National Internet Exchange of India’s (NIXI) Domain Dispute Settlement Mechanism.
• Integrated Consumer Grievance Redressal Mechanism (INGRAM) initiative by Department of Consumer Affairs.
• Department of Justice initiated the discourse on the use of ODR to address disputes involving Government bodies by releasing a list of ODR Platforms and urging Government Departments to resolve their disputes online.
• Ministry of Micro, Small and Medium Enterprises launched the SAMADHAAN portal, with facilities for e-filing and online settlement of Micro and Small Enterprises’ (MSE) dues against Public Sector Enterprises.
• Department for Promotion of Industry and Internal Trade (DPIIT) released the Draft National E-commerce Policy.
• In 2019, the Nandan Nilekani led High Level Committee on Deepening Digital Payments, established by the RBI recommended the setting up of a two-tiered ODR system to handle complaints arising out of digital payments.

Significance ODR:

• Cost-Effective – ODR has the potential to reduce legal costs. First, by way of reduced time for resolution and second, by doing away with the need for legal advice in the select category of cases
• Convenient and quick dispute resolution – ODR eliminates the need for travel and synchronization of schedules.
• Increased access to justice – As part of India’s commitment and leadership to attain Sustainable Development Goals adopted by the UN General Assembly in 2015, India is committed to ensuring equal access to justice for all.
  • Since ODR tools such as online negotiation and mediation are premised on mutually arriving at an agreement, they make the dispute resolution process less adversarial and complicated for the parties
• Removes unconscious bias – ODR processes lessen the unconscious bias of the neutral while resolving disputes
• Enhance Ease of Doing Business: Exploring the massive potential of Online Dispute Resolution (ODR) can enhance the Ease of Doing Business in India.

Challenges of ODR:

• Digital literacy – ODR requires a basic level of digital literacy as a prerequisite. In India, digital literacy often varies across age, ethnicity and geography. This digital divide needs to be addressed to ensure that ODR is adopted by society at large and not remain limited to urban areas
• Digital infrastructure – A broad base adoption of ODR will require essential technology infrastructure across the country
• Lack of trust in ODR services – A lot of people in the country do not trust the emerging technology which is a major challenge for the people of India
• Privacy and confidentiality concerns – Greater integration of technology and reduced face to face interactions create new challenges for privacy and confidentiality, especially in dispute resolution.

Conclusion

• Alternative dispute resolution is an important tool to unburden the judiciary and fulfill the constitutional mandate of justice delivery and making it free and easily available.
• India needs to capitalize on the international experience and prevailing pandemic condition to usher in a revolution in the scheme of justice delivery in the country.
• The Singapore Convention and UNCITRAL can be a guiding light to India’s domestic ADR scheme.

Sources:

• PIB

• The Hindu BL

Prelims Question:

Q. Among the three types of alternative dispute resolution arbitration, conciliation and mediation, the award is binding in the following:

(a) Conciliation

(b) Mediation

(c) Arbitration

(d) None of these

Answer: (c)

The award is binding in the arbitration among the three types of alternative dispute resolution: arbitration, conciliation and mediation.

Mains Question:

Discuss the prospects and challenges of the online dispute resolution along with the initiatives taken by the government in this behalf?