Mr. A, an Investor lodged a Complaint against NSDL, regarding less number of securities shown in his account. But NSDL did not respond. Thereafter, the complaint was filed on SCORES portal. NSDL provided the resolution t

Benefits of Online Dispute Resolution (ODR) It is cost effective, convenient, efficient, allows for customizable processes to be developed and can limit unconscious bias that results from human interactions. In terms of layers of justice, ODR can help in dispute avoidance, dispute containment and dispute resolution. Its widespread use can improve the legal health of the society, ensure increased enforcement of contracts and thereby improve the Ease of Doing Business Ranking for India. Over time, the benefits of ODR and Digital Courts (technology in the public court system) together can transform the legal paradigm as a whole. 1. Cost effective The economic burden of dispute resolution often turns the process itself into a punishment and thereby hinders access to justice. In this light, ODR offers a cost-effective mode of dispute resolution for the disputants as well as the Neutrals. Further, ODR has the potential to reduce legal costs, by way of reduced time for resolution and by doing away with the need for legal advice in select categories of cases. Apart from these tangible costs, there are other indirect costs, often faced by enterprises, on account of lengthy litigation proceedings. For instance, enterprises see loss of productive time, loss in wellbeing of the individuals, loss in investor confidence, reduced investments and consequently slower economic growth. While all these impacts cannot be completely remedied by ODR, it can help in mitigating them and therefore prove to be cost effective. 2. Convenient and quick Issue: The pendency of cases in Courts across India has been one of the major challenges for the justice system. As per the India Justice Report, 2019, in 21 States and Union Territories, cases in District Courts remain pending for 5 years on average or more. Excessive adjournments, vacancy in judicial and administrative staff, and complex processes involving multiple participants are some of the major reasons for such pendency. How ODR is solving such issue: ODR can address such delays by providing a faster and more convenient process for resolution of disputes. In itself, ADR employs simpler procedures and a fixed timeline for processes leading to efficient dispute resolution. To add to such benefits, ODR eliminates the need for travel and synchronisation of schedules. This reliance on asynchronous communication, allows parties to submit their arguments intermittently, or follow a 'documents-only' process. Not requiring the physical presence of parties also reduces the need for travel thereby especially benefitting parties involved in cross border disputes. Similarly, use of ODR within businesses such as e-commerce entities also provides consumers a one-stop avenue to resolve their disputes thereby making dispute resolution quicker and more convenient. 3. Allows for customisable processes Over the past few years, ADR has seen a lot of variants emerge, that go beyond the traditional ADR processes such as arbitration and mediation. Some of the hybrid variants include med-arb, med-arb-med, arb-med-arb. ODR's integration with such non-traditional ODR processes and use of artificial intelligence can lead to limitless possibilities in terms of the types of models that can be developed. Thus, ODR can allow for multi-door dispute resolution through curated and customised process for certain classes of cases. This in turn, can make the dispute resolution process more cost effective and convenient for the user. 4. Encourages dispute resolution ODR can contribute significantly to improve access to a variety of dispute resolution processes by addressing major concerns such as lack of access to physical courts or ADR centres, cost of dispute resolution as well as the barriers due to disabilities. 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. Resolving disputes in the comfort of the user's own homes can make the dispute resolution process feel more accessible. This improvement in the overall experience can encourage more parties to opt to resolve their disputes through such formal means as opposed to not agitating their rights at all. 5. Limits implicit bias caused by human judgment. With the increased awareness regarding racial, caste and gender justice, there have been some concerns regarding the impact of biases, prejudice, and stereotype on decision-making processes and outcomes. Studies have identified that implicit bias and anxiety to communicate with members of different communities can influence the outcome of mediation. ODR processes can lessen the unconscious bias of the Neutral while resolving disputes. ODR Platforms, especially those based on texts and emails, detach audio-visual cues relating to the gender, social status, ethnicity, race, etc. and help in resolving disputes based on the claims and information submitted by the disputing parties, rather than who these parties are. That said, while ODR could indeed limit biases arising from human interactions, ODR stands the risk of introducing new biases through the use of artificial intelligence.