What is Online Dispute Resolution (ODR)?
Online dispute resolution (ODR) is an alternate mechanism for settlement of disputes through online mode of communication/interaction between the disputed parties. ODR undertakes disputes that are partially or fully settled over the Internet, having been initiated in cyberspace but with a source outside it.
Online dispute resolution (ODR) uses alternative dispute resolution processes to resolve a conflict or dispute. ODR can be used to resolve the disputes arising from an online mode of communication/transaction and also for disputes not involving the Internet, known as offline disputes. ODR has come up as an alternative to the traditional legal dispute resolution system where litigations are filed in court and justice is sought through physical appearances in Courts. The traditional legal system involves a courtroom, lawyers, judges to register, and a lot of time to resolve the dispute.
The parties involved in the dispute may use the Internet and web-based technology in a variety of ways. Online dispute resolution can be done entirely on the Internet through email, chat, and videoconferencing, and if needed parties may also meet in person for face-to-face interaction. Often, a combination of “online” and “offline” (such as face-to-face) methods are used in online dispute resolution.
India has also incorporated uniform principles of ADR in the Arbitration and Conciliation Act, 1996, which has been amended several times. The Arbitration Act provides for ADR mechanisms like arbitration, conciliations, etc. for national and international stakeholders.
Why Online Dispute Resolution (ODR)
In the present scenario of the pandemic of Covid-19, we are looking for some alternate resolution process for settlement of the litigations without approaching the court and tribunals, because in the present situation it is very tough to approach the court and fight for many years for small cases. For this new challenge, we have adopted the Online Dispute Resolution process (ODR) without approaching the court proceeding and with minimum cost.
ODR is very Convenient, accurate, time-saving, and cost-saving and provides more efficient, effective, scalable, and collaborative mechanisms of containment and resolution.
By the ODR we can settle a number of disputes in a time-bound manner with minimum expenses and this ODR pattern is also recognized by the Govt. for speedy disposal without any contact with the parties and the party can explore the possibility of settlement with own choice and comfort.
Process of Online Dispute Resolution (ODR)
In the process of the ODR, we receive cases from any party who is involved in the dispute and wants to settle the disputes through ODR conciliation.
After receiving the case we send an invitation notice to the parties for the conciliation and appoint an independent Conciliator to carry forward the conciliation proceeding.
Conciliator is an experienced person and is appointed to initiate a broad-based consultation between parties which are involved in the conflict. In this process, the conciliator, who is a neutral, third-party person does the conciliation. Conciliation is a private process, where the conciliator helps the disputed parties to discuss the issue and try to resolve the dispute. The parties who are involved in the conflict have the opportunity to present their point of view, present evidence, and argue for a satisfactory resolution. Conciliation can be done entirely online with Internet technology, and parties can have a face-to-face interaction also by meeting personally in the presence of the conciliator if required. Some online dispute resolution methods involve a combination of these methods. In the conciliation process, the conciliator is only a facilitator and does not have the discretion to make a decision. Conciliation resolves the dispute while maintaining a consensual and nonbinding approach. The conciliator interacts with the parties in dispute to set common rules for the resolution process and assist the parties by identifying and pointing out possibilities for agreement/solution between parties, and it is up to the parties to agree or disagree toward the end of the process. After seeking the parties’ consent, the conciliator may evaluate the parties’ rights/interests and suggest possible settlements. The resolution of the dispute is the choice of the involved parties only, and they will have to reach an agreement/settlement. If they will reach an agreement, the parties complete a written document that contains the complete specification of the settlement. In many instances, parties go to the court for the enforcement of the agreement.
The conciliator mostly uses email/WhatsApp/phone calls/video conferencing as the communication mode. The conciliator tries to arrive at acceptable terms for both the parties and resolve the issue. Other than email, chat rooms and videoconferencing are also used for instant messaging for dispute resolution. These days due to the advancement in technology and better connectivity, videoconferencing provides a lot of conveniences. Videoconferencing not only enables live conversation but also provides personal connection because of virtual face-to-face interaction. However, the usage of email or instant chat, or videoconferencing is subject to the nature of the dispute and availability of the persons involved.
Binding of the Settlement Agreement
That both the parties have to agree to the terms of settlement and their entire satisfaction before the signing of the agreement. These terms are final and binding on both parties, their legal representatives, assignees, nominees, and any persons claiming under them under Sections 73 and 74 of the Arbitration and Conciliation Act,1996.
Our Success Story
We at Legalix are working in the ODR domain since many years and in the Pandemic Covid-19 we have received the volume of cases for the conciliation through ODR method and we have settled around 75% cases through the ODR system. The parties to the dispute are very much satisfied with this type of unique method for the resolution of their dispute.
We have handled and settled maximum consumer cases which were pending in the court for many years for disposal and, the consumer who filed the case lost their hope for any judgment. After the resolution of disputes through conciliation the consumers are very happy with the said settlement and appreciated this innovative step.