Online dispute resolution (ODR) is a technology-driven approach to resolving disputes outside the traditional court system, employing techniques like arbitration, conciliation, and mediation. It offers a cost-effective and accessible mode of dispute resolution, providing both an extension of the public court system and an alternative to it. This answer discusses the advantages of ODR and explores the challenges hindering its effective implementation in India.

Advantages of Online Dispute Resolution (ODR) mechanism:

  • Cost-effective: ODR significantly reduces the economic burden associated with dispute resolution, making justice more accessible to all. By minimizing legal costs and expediting the resolution process, it ensures that justice is not delayed or unaffordable.
  • Customizable processes: The integration of ODR with artificial intelligence and non-traditional dispute resolution methods allows for a wide range of customizable models. This enables tailored approaches for specific categories of cases, fostering more effective and efficient resolutions.
  • Reduced implicit bias: ODR platforms, especially those based on texts and emails, eliminate audio-visual cues related to gender, social status, ethnicity, and race. This helps in resolving disputes solely based on the information provided by the parties, promoting impartiality.
  • Encourages dispute resolution: ODR addresses various obstacles that deter parties from seeking resolution, such as physical access to courts or ADR centers, financial constraints, and barriers faced by individuals with disabilities. It encourages more parties to opt for dispute resolution, leading to quicker resolution of conflicts.

Challenges associated with ODR:

  • Digital divide: ODR relies on digital literacy, which is not universally prevalent in India. Bridging the digital divide and ensuring widespread access to technology is essential for the successful adoption of ODR across the country.
  • Privacy and confidentiality concerns: Increased reliance on technology and reduced face-to-face interactions raise concerns about privacy and confidentiality.
    Issues like online impersonation, tampering of digital evidence, cyber-attacks, data theft, phishing, and hacking pose significant challenges to ODR.
  • Lack of trust in ODR services: Many individuals in India are sceptical about embracing emerging technologies for dispute resolution. Building trust in ODR services is crucial to gaining broader acceptance.
  • Archaic legal processes: The existing archaic legal processes in India may not seamlessly align with the end-to-end online dispute resolution mechanism, creating hindrances to its effective implementation. Moreover, the absence of provisions for online notarization of documents poses additional challenges.


While online dispute resolution (ODR) presents numerous advantages, its successful implementation in India necessitates addressing various challenges. To promote its usage, widespread awareness and training initiatives, backed by social media campaigns, workshops, and educational programs, should be undertaken. Additionally, providing financial aid to ODR projects to establish robust technical and administrative infrastructure is crucial to maximizing its potential for enhancing justice delivery in the country.

Legacy Editor Changed status to publish March 4, 2024