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Kanishk's Project

This document discusses online dispute resolution (ODR) as an alternative to traditional dispute resolution mechanisms. It provides a brief history of alternative dispute resolution, noting that it originated in the US as a cheaper and less adversarial alternative to litigation. The document then discusses ODR, analyzing its use of mediation, arbitration, and negotiation online. It notes some problems with ODR and argues that its future is promising as technology continues to advance.
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0% found this document useful (0 votes)
141 views20 pages

Kanishk's Project

This document discusses online dispute resolution (ODR) as an alternative to traditional dispute resolution mechanisms. It provides a brief history of alternative dispute resolution, noting that it originated in the US as a cheaper and less adversarial alternative to litigation. The document then discusses ODR, analyzing its use of mediation, arbitration, and negotiation online. It notes some problems with ODR and argues that its future is promising as technology continues to advance.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ONLINE DISPUTE RESOLUTION: AN ALTERNATIVE OF ADR

Business Law

Submitted by

Kanishk Joshi

SM0114065

4th Year & 7th Semester

National Law University, Assam


Table of Contents

Table of Cases ........................................................................................................................................... 2


Abstract ..................................................................................................................................................... 4
Introduction ............................................................................................................................................... 4
Aims .......................................................................................................................................................... 4
Objectives ................................................................................................................................................. 5
Scope and Limitations............................................................................................................................... 5
Review of Literature ................................................................................................................................. 5
Research Questions ................................................................................................................................... 6
Historical Background............................................................................................................................ 7
Online Dispute Resolution: A Brief Analysis ..................................................................................... 11
Problems of Use of ODR....................................................................................................................... 15
Future of Online Dispute Resolution................................................................................................... 16
Bibliography ........................................................................................................................................... 19

1
Table of Cases

Babar Ali v. Union of India

Food Corporation of India v. Joginder Pal

Jag Raj Singh v. Bripal Kaur

Jivaji Raja v. Khimiji

M/S Guru Nanak Foundation v. M/S Ratan Singh & Sons

Poonja & Company

Vide Mury Exportation v. Khaitan and Sons

2
Table of Abbreviation

1. Alternate Dispute Resolution


ADR

2. Bombay
Bom.

3. Calcutta
Cal.

4. Company
Co.

5. Edition
Edn.

6. ODR Online Dispute Resolution

7. Page No.
p.

8. Paragraph
para

9. Supreme Court Cases


SCC

10. United States


U.S.

United Nations Commission on International


11. UNCIT
Trade Law
RAL

12. Volume
Vol.

3
Abstract
An analysis of the mechanism of Online Dispute Resolution, while looking into the different aspects
such as the methods of Online Dispute Resolution in form of Mediation, Arbitration and
Negotiation. Along with the discussion on the advantages and disadvantages that the mechanism
of Online dispute Resolution poses, and the future of Online Dispute Resolution in the field of
Alternative Dispute Resolution mechanisms.

Introduction
Online Dispute Resolution (ODR) carries with itself a literal meaning of being a mechanism, which
is a kind of Alternative Dispute Resolution mechanism, aimed at resolving a claim or dispute,
arising out of issues ranging from an online, e-commerce transaction to disputes arising from issue
not involving internet, called as an “offline” dispute. The ODR is a modification cum addition to
the traditional legal process of resolving claims and disputes, which usually involved a court,
judges, advocates, etc. but over the course of time, the mechanism and the approach towards
resolving disputes and claims has evolved with the development in the technological sphere, thus
leading to the development of ODR as an Alternative Dispute Resolution mechanism.

The paper primarily deals with a brief discussion on the development of ODR in different fields
such as mediation and arbitration, along with the legal characterization required and in turn the
different types and forms of automated and assisted negotiations involved in the process of
resolving disputes. Furthermore, the paper divulges into the question, regarding the effective
implementation as well as the significance of ODR in regards to the arena of commercial
arbitration1, the jurisdictional dilemma involved in settling disputes via the use and employment
of ODR, along with the various advantages this kind of mechanism possesses over the traditional
approaches.

Aims
The main aim of this project is to educate the readers about the Online Dispute Resolution.

1
Online Dispute Resolution and its Significance for International Commercial Arbitration, Gabrielle Kaufmann-
Kohler, Global Reflections on International Law, Commerce and Dispute Resolution, 2005, ICC Publishing

4
Objectives
The main objectives of this research paper are:

1. To discuss the concept of Online Dispute Resolution.


2. To discuss the problems related to ODR.
3. To discuss the importance of ODR in current era.

Scope and Limitations


The scope of this project is limited to Online Dispute Resolution.

Review of Literature

Salil K. Roy Chowdhury and H.K.Saharay ARBITRATION LAW , (IIIrd edn), Eastern Law
House

In the Recent Years There Have Been Significant Developments the field of Alternate Dispute
Resolution. This book comprises the details of Online Dispute Resolution in a very concise
manner. This book also deals with the international perspective of Online Dispute Resolution.
Some important judgments of the Supreme Court on the subject matter are discussed in detail
which helped the researcher a lot to do the research smoothly.

Michale Pryles (ed).DISPUTE RESOLUTION IN ASIA, Second Edition

This book provides a much wider spectrum of Asian laws and approaches to dispute resolution
than is traditional in comparative studies. This book provides a very lucid and brief analysis of the
concepts The book serves as a very systematic and comprehensive guide to understanding the
effect of Online Dispute Resolution in Asian Countries.

5
Research Questions
1. What is Online Dispute Resolution?
2. What are the Problems of use of Online Dispute Resolution?
3. How Online Dispute Resolution is different from Alternate Dispute Resolution?

Research Methodology

In this project, the researcher has adopted Doctrinal type of research. Doctrinal research is
essentially a library based study, which means that the materials required by a researcher are
available in libraries, archives and other data bases. This research is totally based on library
materials. Various types of books have been referred in order to obtain the adequate materials
essential for the project.

6
Historical Background
Alternative Dispute Redressal developed in U.S.A in order to find the alternative to the traditional
legal system, which at that time felt to be costly, unpredictable, rigid, damaging to the
relationships, very limited right based remedies as against to that of creative problem solving.
Concept of ADR originated in America, is not supervising because of their prevailing litigant
system there. From the beginning of the nineteenth century various efforts were made to develop
the use of arbitration and mediation, which emerged in response of the conflict between labor and
management. In 1898, Congress followed the initiative to develop the same and few years later in
Massachusetts and New York mediation for collective bargain was set up, later special mediation
agencies were set up such as Board of Mediation and Conciliation for railway labour (1913),
Federal Mediation and Conciliation services (1947). In 1913, New lands Act legislation reflected
the idea that industrial dispute could be resolved through collective bargaining; settlement in turn
could be advanced through mediation, conciliation and voluntary arbitration.2

Access to justice in widest sense if one effective way of resolving dispute, whether it be through
court based litigation or ADR, it is an essential aspect and way of ensuring and realization of our
Fundamental Right guaranteed by the Constitution. Various international organization and
convention also lay stress of the access of justice such it is recognized in Article 6 of the Council
of Europe’s 1950 convention for protection of Human Rights and Fundamental Freedom, further
European Union’s Court of Justice recognizes the right to justice as valid remedy of European
Union law which again has been emphasized in the Article 47 of the Charter of the Fundamental
Rights of the European Union.

In India ADR is an attempt made by the Judiciary and Legislation to achieve the Constitutional
goal of speedy and accessible justice to all, ADR first started to find the solution of the problem
of increasing burden on the Judiciary, a process to find the way to reduce the judiciary burden later
on developed as the separate field solely catering the needs to solve the dispute without going to
the Formal legal system. ADR in India is formed on the Constitutional Provision of Article 14 and
21 which deals with equality before law and right to life and personal liberty. ADR tries to achieve

2
http://courts.state.de.us/Courts/Superior%20Court/ADR/ADR/adr_history.htm

7
some of the aims of Directive Principles of State Policy in Article 39(A) relating to Free Legal Aid
and Equal Justice.

The law which deals with ADR is contained in Arbitration and Conciliation Act, 1996, Legal
Service Authority Act, 1987. Section 89 of Civil Procedure Code, 1908 made it possible so that
arbitration proceeding could take place. But before enactment of the act in 1996, in 1940,
Arbitration Act of 1940 was enacted to consolidate and amend the law relating to the Arbitration
in India as contained in Indian Arbitration 1899 and the second schedule of the Civil Procedure
Code of 1908, main defect of it was, it based largely on English Arbitration Act 1934. Though the
act of 1940 was a good legislation but was ineffective. In M/S Guru Nanak Foundation v. M/S
Ratan Singh & Sons3 the Apex Court observed that Act of 1940 was ineffective and the
proceedings conducted under the act made lawyers laugh and legal philosopher weep. The
Arbitration and Conciliation Act 1996 also defines the law relating to the conciliation provided for
the matters connected therewith on the basis of Model Law on International Commercial
Arbitration adopted by the UN general assembly in 19854.

Some of the Salient feature of the Arbitration and Conciliation Act 1996 act lays considerable
stress on the maintenance of the party autonomy. The party to dispute can decide the number of
the arbitrator, rules governing the substance of dispute, procedures, place and language of
arbitration. One of the major advantages of the act is that it facilitates quick dispute resolution
system relating to the commercial and speed up the arbitration process by reducing the court
intervention, under the act of 1996, court may provide some interim measure of protection at the
party’s request, offer assistance or recover documents on the request of the tribunal. In Babar Ali
v. Union of India5 in which the Apex court ruled that Arbitration and Conciliation Act 1996 is

3
(1981) 4 SCC 634
4
The policy objectives adopted by UNCITRAL in the preparation of Model law were described by the Secretary
General’s Report as follows :
(i) The liberalisation of international commercial arbitration by linking the role of national Courts, as by
giving effect to the doctrine of ‘autonomy of the will’, allowing the parties freedom to choose how their
disputes should be determined;
(ii) The establishment of a certain defined core of mandatory provisions to ensure fairness and due process;
(iii) The provision of a framework for the conduct of international commercial arbitrations, so that in the event
of the parties being unable to agree on procedural matters the arbitration would nevertheless be capable of
being completed; and
(iv) The establishment of other provisions to aid the enforceability of awards and to clarify certain
controversial practical issues.
5
(2000) 2 SCC 178.

8
neither unconstitutional nor violates the basic structure of the Constitution, as judicial review is
there for challenging the ward in accordance with the procedure established.

As mentioned above ADR was developed to reduce the burden of the courts and to overcome the
criticism of delay in justice and thus, alternative dispute resolution such as the Lok Adalats,
Mediation, Arbitration were thought of and developed, although the ADR have given speedy
justice but its exercise have raised some questions. But its importance can’t be overlooked in the
legal system like India in spite of the various questions raised against it. In Food Corporation of
6
India v. Joginder Pal Supreme court laid emphasis on the importance of the ADR system of
adjudication through Arbitration, Mediation it’s the modern innovation in the field of the legal
studies and brought the changes in the administration of justice. It can provide a better solution to
settle a dispute more speedily and at less cost as compared to that in the normal course of litigation.
Again in Jag Raj Singh v. Bripal Kaur7 in which Apex court realized the scope of ADR in
procedural as well as in Family law court observed that approach of courts in matrimonial matters
is much more of constructive, affirmative rather than abstract, theoretical doctrine, moreover the
matrimonial matters must be looked from the human angle and to make every possible attempt to
reconciliation between the parties. Since law is dynamic and every changing to meet the demand
of time and need of the people, ADR would definitely help in adjudication.

Due to the expansion of the international trade, investment as result of globalized economy and
emergence of various economic orders, which also calls for adoption of effective, speedy,
efficacious method of settlement of dispute. For a long time foreign investors has expressed their
concern about the dispute settlement mechanism in India which take up a lot of time, and the
business community within the country also made demands for the faster and effective way of
solving the commercial disputes. Moreover there was consensus that mechanism under Arbitration
Act 1940 had led to further litigation, act of 1966 enacted.

‘Arbitration’ means a process of dispute resolution in which a neutral party or third party is called
as Arbitrator, a decision after hearing both the parties having opportunity to be heard 8.The word
‘Arbiter’ was originally used as non-technical designation of a person whom dispute was referred

6
AIR 1989 SC 1263
7
(2007) 2 SCC 564
8
Black's Law Dictionary, 6th edn. (1990), West Publishing Co., p.105

9
for decision irrespective of the any law, thereafter the word ‘Arbiter’ has been attached to a
technical name of a person selected with reference to established system for friendly settlement of
dispute, which through not a judicial process is yet to be regulated by law by implication.
Arbitration is term derived by the nomenclature of Roman law. It is generally applied to such
arrangement for taking and abiding by all judgment of a selected person in some disputed matter
instead of carrying to court of law9. The Alternative dispute redressal methods have to be looked
up with all the earnest so that public has a faith in speedy process of resolving dispute with these
process.10 Litigation is a judicial controversy, a consent in court of law a judicial proceeding for
the purpose of enforcing right11. In Vide Mury Exportation v. Khaitan and Sons12 court made it
clear that both the litigation and arbitration are method of solving disputes one is in court of law
while other I through private tribunal.

Arbitration is a private process, as its initiation is under an agreement. It is less adversarial, formal,
and flexible with simple procedure, it does not follow any formal rule of evidence, findings are
limited to some documents with no interrogatories, it is often practice that disputed parties select
the Adjudicator for themselves, the decision does not set any precedent for the any other arbitrator.
Arbitrators are normally empowered to grant the compensatory damage and provisional relief. All
these factors reduces the cost and make way to deliver quick justice.13

Arbitration is consensual process, not matter of coercion. No arbitration statue can make party to
arbitrate when they have not agreed to do so, nor it can prevent from excluding certain claims from
scope of arbitration agreement in any manner to choose so. It only requires court just to enforce
the privately negotiated agreement like contract in accordance with their terms.14 Section 2(1) (a)
of 1966 Act covers any type of arbitration which is administered by any arbitral institution or not
section also covers the voluntary agreement by the private parties or operation of law. But the act
does not provide the definition of ‘Arbitration’. In Jivaji Raja v. Khimiji Poonja & Company.15
Bombay High Court held arbitration is the reference of dispute or difference between two or more

9
Salil K. Roy Chowdhury and H.K.Saharay Arbitration Law p 3, (IIIrd edn), Eastern Law House
10
State of J&k v. Dev Dutta Pandit(1ee3999) 7 SCC 339.
11
P.Ramanatha Aiyar’s (2002),‘The Law Lexicon’,p1135.
12
AIR 1956 Cal 644,648.
13
Michale Pryles (ed).Dispute Resolution in Asia, Second Edition, p.123-153.
14
Volt Information Sciences, Inc v.Leland Stanford University 489 US 468(1989)
15
AIR 1934 Bom 476.

10
parties to person chosen by the party or appointed under statutory authority. In broad sense it is
generally the substitution of ordinary judicial machinery by a mutually chosen tribunal.

In India, Alternative Dispute Redressal have its root embedded in past. In Indian individuals
expressly encouraged the settlement of the dispute by the way of tribunals chosen by the parties
themselves, an old system which is ‘People Court’ which is popularly known as the ‘Panchayat’,
as regarding the position outside the India, the submission of the disputes to decision of the private
persons was made under the Roman law known as the Compromysm or Compromise, and
arbitration was popular mode of settling the disputes and was mush favored in the civil law of the
continent. Greek attached importance to arbitration. While the attitude of the English law towards
the Alternative Dispute Redressal is fluctuating from stiff opposition to moderate welcome, as the
common law courts looked jealously at agreements to submit to extra-judicial determination16.

Online Dispute Resolution: A Brief Analysis

Online Dispute Resolution (ODR) has over time evolved, so as to become one of the widely used
methods of Alternative Dispute Resolution mechanisms. ODR has been a topic of debate mostly
in matters related to private sector and business disputes. ODR as a mechanism for resolving
disputes in the global business-to-business market place, between Internet businesses and
consumers, and also between two consumers (in case of person-to-person transactions) via the use
of the evolved online arbitration and mediation services. Different kinds of web portals can be
used such as web conferencing, e-mails, etc. where the parties in dispute can meet each other,
without having to go to courts and chose a forum that may be geographically inconvenient for one
or both the parties. ODR has evolved as a more convenient and efficient mechanism for
resolving disputes where the parties are geographically distant.17

The Process of ODR:

16
Russell on Arbitration , twenty second edition,2003, p 362,para 8-002
17
Government-to-Citizen Online Dispute Resolution and Commercial Disputes: A Preliminary Inquiry, Anita
Ramasastry, Washington Law Review, Vol. 79, 2004, pp.161

11
In the case of ODR, there exists no uniform process for resolving disputes, but in order to
understand the mechanism of ODR, a few important steps18 are:

• initial contact
• initiation of dispute resolution process, terms of use, introduction to the system
• assessment and checklists to be used to determine suitability of the dispute for ODR
• information exchange, in which parties exchange data and information
• formal lodgment, where parties can lodge formal documentation such as pleadings,
records, and other material
• questions and answers by the parties
• facilitation (usually by shuttle negotiation) through a third party, and
• if there is a third party resolution, a decision is rendered

In an ordinary litigation, only three parties are present, which includes the aggrieved parties and
the mediator or the arbitrator. But with the development of the ODR mechanism, an additional two
parties are found which are as significant as the other three which are omnipresent. The additional
parties namely are Fourth party: Technology and the Fifth party: the provider of the technology.
The Fourth Party is a realization from the contractual perspective, which are the actual parties
having a conflict, the neutral party (arbitrator or mediator), and the party that delivers the
technology. Thus, it is to be seen that it is the Fifth party that delivers the Fourth Party.

Online Dispute Resolution mechanism has gone on to gain popularity in resolving e-commerce
disputes among businesses and consumers. It carries with itself many advantages over the
traditional mechanisms of dispute resolution. A few advantages of Online Dispute Resolution
are19:

• Cost – the online dispute resolution is often less expensive than the traditional legal process
• Efficiency – Online Dispute Resolution can often resolve the dispute quickly
• Participation and Control – parties using Online Dispute Resolution must work with each
other to resolve the dispute and often have more control of the outcome of the dispute.

18
Online Dispute Resolution: Present Realities, Pressing Problems and Future Prospects, Eugene Clark, George Cho
and Arthur Hoyle, International Review of Law Computers & Technology, Volume 17, No. 1, pp. 8-9
19
Clark, Eugene; Cho, George ; Hoyle, Athur , Online Dispute Resolution: Present Realities, Pressing Problems and
Future Prospects, International Review of Law, Computers & Technology, Vol. 17, Issue 1 (March 2003), pp. 16-20

12
• Flexibility – parties using Online Dispute Resolution can have more flexibility than the
traditional legal process.
• Geographic flexibility-- Online Dispute Resolution can allow parties in different locations
or countries to avoid the costs and inconveniences of travel.

ODR further gives a party the advantage of pre-communication and re-framing through which a
facilitator can assist the parties in framing the dispute in ways that enhance the other party to
comprehend better what is being said.20 Furthermore, ODR gives a party a greater degree of control
of the proceedings that is usually absent in face-to-face situation, which further allows for honest
communication of thoughts and feelings.

Even though there a few advantages of the ODR, but as the coin have two faces, so does ODR. On
one face, it has the positive aspect in terms of advantageous factors, and on the other face it has
the negative aspect in the form of disadvantages. During negotiation and dispute resolution, users
of ODR are devoid of the non-verbal clues such as those conveyed by body language, touch, smell,
21
etc. Even though technology has given a greater degree of flexibility of delivery, there are
practical problems of the process, such as legal representation and input are difficult to build up
during the entire mediation or other ODR process. Furthermore, the question towards safety and
security also has not been answered properly, confidentiality and privacy are continuously at a
threat, which further involves issues regarding matters of policy and regulation.

Thus, it is to be seen that Online Dispute Resolution, certainly proves to be some sort of
improvement over the traditional mechanisms of dispute resolutions, which undoubtedly helps the
parties to resolve their conflicts in a much efficient and effective manner.

The ODR systems used by the online marketplace eBay, considered together with payment
intermediary service PayPal, are frequently cited as the biggest example of ODR, handling a
volume of approximately 60 million disputes annually. Aside from its impressive volume, the
system is also extremely efficient, resolving 85% of the conflicts using software alone. Human
intervention is required in only a small minority of cases. 22 Another example can be the UK’s

20
Ibid, pp. 9
21
Ibid, pp. 9
22
The Growth of Online Dispute Resolution and Its Use in British Columbia, Darin Thompson, Civil Litigation
Conference—2014, https://www.cle.bc.ca/PracticePoints/LIT/14-GrowthODR.pdf

13
Money Claims Online system, but it is more of an online filing system as opposed to suite of
technology-based dispute resolution tools. Organizations such as the United Nations and European
Union are working for a few years, in order to determine and come up with a set of rules so as to
make the dispute resolution process more easily and conveniently accessible for the parties in
conflict. Even though these kinds of rules and mechanisms will rely on public regulation, but will
be privately administered.

Online Dispute Resolution involves various kinds of mechanisms which are employed so as to
resolve disputes on the Internet, and they are23:

• Automated and assisted negotiation


In order to realize the method of ODR in form of negotiation, it is to be seen that there are
two main forms of negotiation, and they are:
a) Automated Negotiation – It is basically a process of blind binding, where the parties
are firstly jointly determine the range or spread within which they would agree to
settle. Each party then makes an offer, unaware of its opponent’s offer. If the offer
is within the agreed spread, then the computer calculates the mean value and the
dispute is settled for that amount. But if the offer is outside the spread, then no
settlement is reached and the computer invites the parties to proceed to a new round
of blind bids.
b) Assisted Negotiation – The process of assisted negotiation is more sophisticated
because it can handle all types of settlement terms and conditions and is not
restricted to payment. It is a kind of negotiation between two parties without the
involvement of third neutral, but with the assistance of a computer.
• Mediation
Mediation is quite less opted method for resolving disputes online. The process is similar
to the offline process, except that it facilitative and evaluative techniques are combined
with IT. The sphere is generally divided into three sub-parts, where one is the chat room
for joint sessions, one for caucuses and a place for filing and storing documents. Even

23
Online Dispute Resolution and its Significance for International Commercial Arbitration, Gabrielle Kaufmann-
Kohler, Global Reflections on International Law, Commerce and Dispute Resolution, November 2005, pp. 438-441

14
though the mechanism of mediation through online means appears as a skeptical option,
but the mechanism has turned out to be a successful one. The same is observed because of
the benefits and advantages gained through it, such as cost saving, time saving and is indeed
a convenient option.
• Arbitration
On analysis and applicability of the aforementioned methods, it is seen that they are non-
binding in the manner that they don’t result in enforceable decisions but in settlements or,
in the event of failure, in nothing at all.
The only binding method available online is the method of arbitration. A method which is
generally providers and users call as non-binding arbitration, it is to be specified in what
respect it is not binding. The possibilities that arise are, it is either non-binding at the very
outset or at the end.
FordJourney, an online motor vehicle sales dispute resolution programme, provides a good
example for unilaterally binding mechanism. The ICANN system for disputes over domain
name registrations under the Uniform Dispute Resolution Policy, provides with a different
approach, where the submission to arbitration is binding on the respondent (the domain
name holder), while the outcome is binding on neither party.

Problems of Use of ODR

There are various problems which are related with the use of internet as a method for dispute
resolution, few of the issues raised are:24

• confidentiality, privacy, security, record keeping, storage of information


• access issues such as concerns about the growing digital divide between the it haves and it
have-nots
• appropriateness of ODR for a particular type of disputes
• training the it requirements to make it work, that is, the development of standards, and

24
Clark, Eugene; Cho, George ; Hoyle, Athur , Online Dispute Resolution: Present Realities, Pressing Problems and
Future Prospects, International Review of Law, Computers & Technology, Vol. 17, Issue 1 (March 2003), pp. 7-26

15
• development of ethical codes of practices

Further, the legitimacy of the process is also based on the assertion of a proper jurisdiction along
with the fairness of the process. In order to determine the appropriate law to be applied and
jurisdiction in cyberspace, the internet’s cross-border nature from a technical standpoint and its
implications are to be analyzed properly. For example, in Businesses-to-Consumer commercial
transaction, in order to solve disputes, the aspects to be looked at are; one is the country of
destination of approach, where the consumer should have the protection of the laws of the
consumer’s residence. The other aspect is the country of origin of approach, where the appropriate
law should be that where the merchant is located. Thus, a consumer will find it difficult to quickly
access the justice system and adequate redressal forum.

It is suggested that the structure of the internet is such that there is no meaningful way to avoid
contact with a given jurisdiction except to stay off the internet altogether. ODR in such cases helps
in providing the proper method by employing techniques that can be applied regardless of the
procedural or substantial jurisdictional framework. ODR further allows the parties in a trans-border
e-conflict to circumvent the issue of determining which court should hear the case, and the seat of
arbitration in cyberspace is in accordance with the will and agreement of the parties, rather than
on rules of procedure laid down in the law of the country where an award was made or sought to
be enforced.25

Future of Online Dispute Resolution

With the increasing number of transactions taking place cross-country through the platform of
internet, means the numeral increase in the disputes arising out of such instances of electronic
commerce and the same will increase even more in the future, which makes it clear that Online
Dispute Resolution (ODR) has a growing role to play.

Even though disputes arising out of large international commercial transactions, which constitute
the major part of the traditional arbitration caseload, are unlikely to be referred to ODR, whereas,

25
Haloush Haitham A., Jurisdictional Dilemma in Online Disputes: Rethinking Traditional Approaches, The
International Lawyer,Vol. 42, No. 3 (Fall 2008), pp. 1135-1141

16
small and medium-sized disputes, which include businesses-to-businesses disputes, can be
effectively and efficiently resolved by the way of ODR.

Thus it is to be seen, even though it’s a long road ahead for ODR to evolve and develop, but it is
clear that the mechanism of Online Dispute Resolution as a method of Alternative Dispute
Resolution has a very important role to play in the future, where the trans-national distances are
going to get shorter and shorter.

17
Conclusion

On the analysis of the Online Dispute Resolution mechanism and the various aspects related with
it, such as the advantages, the disadvantages, the problems face by ODR, and the future it has in
the arena of dispute resolution via means other than the traditional mechanisms, it is to be seen
that the slow adoption of ODR into formal justice systems is consistent with the tendency to resist
technology, at least on a large scale. However, it is reasonable to expect ODR will eventually
become part of the justice “mainstream.”

The in-depth analysis of the major issues makes it clear that the amount of faith in the ODR is still
yet to reach its maxima. Disputants are still reluctant to let go of the face-to-face resolution
mechanism, and are hesitant in adopting alternative dispute resolution mechanisms such as the
Online Dispute Resolution mechanism.

With the evolution and advancement in technology, the complications arising out of the contractual
relationships in terms of transactions taking place through the medium of Internet, would
eventually lead to the development of Online Dispute Resolution Mechanism so as to cater to the
needs and requirements of the changing times, it is then, that the mechanism of ODR might be
able to realize its true potential and efficacy in regards to quick and effective resolution of conflicts.

18
Bibliography
Books

Salil K. Roy Chowdhury and H.K.Saharay Arbitration Law, (IIIrd edn), Eastern Law House

P.Ramanatha Aiyar’s (2002),‘The Law Lexicon’

Michale Pryles (ed).Dispute Resolution in Asia, Second Edition.

Russell on Arbitration , twenty second edition,2003.

Articles

Clark, Eugene; Cho, George ; Hoyle, Athur , Online Dispute Resolution: Present Realities,
Pressing Problems and Future Prospects, International Review of Law, Computers & Technology,
Vol. 17, Issue 1 (March 2003)

Clark, Eugene; Cho, George ; Hoyle, Athur , Online Dispute Resolution: Present Realities,
Pressing Problems and Future Prospects, International Review of Law, Computers & Technology,
Vol. 17, Issue 1 (March 2003).

Haloush Haitham A., Jurisdictional Dilemma in Online Disputes: Rethinking Traditional


Approaches, The International Lawyer,Vol. 42, No. 3 (Fall 2008)

Web Sources

ADR HISTORY, http://courts.state.de.us/Courts/Superior%20Court/ADR/ADR/adr_history.htm

THE GROWTH OF ONLINE DISPUTE RESOLUTION AND ITS USE IN BRITISH


COLUMBIA, Darin Thompson, Civil Litigation Conference—2014,
https://www.cle.bc.ca/PracticePoints/LIT/14-GrowthODR.pdf

19

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