The Hindu Editorial Analysis: The editorial analysis of The Hindu Newspaper Editorial Articles aimed at simplifying various concepts relevant to the UPSC and other State PSC Exams. The Editorial Analysis helps in expanding the knowledge base as well as framing better quality mains answers. Today’s Hindu Editorial Analysis of ‘India must Board the Online Dispute Resolution Bus’ discusses various issues and challenges faced in making India an Arbitration Hub of the World. India must Board the Online Dispute Resolution Bus editorial analysis also suggests ways to adopt online dispute resolution mechanism in India.
During the Delhi Arbitration Weekend held in February 2023, Kiren Rijiju, the Law Minister of India’s Union, highlighted the significance of institutional arbitration in improving the ease of doing business.
According to the Ease of Doing Business report, India’s ranking in ‘Enforcing Contracts’ is 163rd, which shows a slight improvement from the 186th position in 2015 and 173rd position in 2006.
During the 1990s, India liberalized its economy, which coincided with the growth of international arbitration. With an increasing number of countries signing bilateral investment treaties, institutional arbitration emerged as the preferred mode of resolution.
The government has amended its arbitration legislations in 2015 and 2019 to make them more effective and comprehensive. Along with these amendments, a few recent judicial decisions have also restricted the use of “public policy” as grounds for setting aside awards and emphasized institutional arbitration.
Despite India’s lagging position in traditional arbitration, the country has the potential to become a leader in online dispute resolution (ODR), given its strengths in technology and the widespread adoption of online tools during the COVID-19 pandemic.
ODR is a comprehensive approach that goes beyond mere audio/video conferencing. It involves the integration of various tools, including multi-channel communication, case management systems, automated case flows, digital signatures and stamping, and even cutting-edge technologies like blockchain, natural language processing, artificial intelligence, and machine learning.
Following three ways can be implemented in order to make India hub for alternative dispute resolutions in the world-
To encourage greater adoption of ODR, legislative measures could be implemented, such as-
To promote the growth of ODR in India, it is necessary to address infrastructural challenges, bridge the digital divide, and leverage existing setups such as Aadhaar kendras, which can also serve as ODR kiosks.
Government departments can consider using ODR as a mechanism for addressing grievances. By proactively adopting ODR, government entities can boost confidence in the process and offer citizens an affordable and convenient way to resolve disputes with the government.
Given the current backlog of cases, the adoption of ODR could enable access to justice for all, right at their fingertips. Although India may have missed the opportunity to become an arbitration hub, it can still surpass other countries in the digital realm by leveraging the potential of ODR.
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Arbitration is a form of dispute resolution outside of the courts, where a neutral third party (arbitrator or panel of arbitrators) is appointed to decide the dispute between parties.
Conciliation is a form of alternative dispute resolution (ADR) in which an independent third party (the conciliator) assists the parties in reaching a mutually acceptable agreement.
The governing law for arbitration in India is the Arbitration and Conciliation Act, 1996.
Any dispute which is capable of settlement can be referred to arbitration, including commercial disputes, construction disputes, and even disputes arising from personal contracts.
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