Online Dispute Resolution: Arbitration Procedure at WeVaad

With The Onset Of The Pandemic (COVID-19) And The Subsequent Lockdown, The World Had Turned Topsy-Turvy And So Had The Functioning Of Indian Courts. The Courts Were Functioning To Take Up Only Urgent Matters Throughout The Lockdown. Accordingly, Only Matters With An Immediate Urgency Were Taken Up By Courts In India During Lockdown. Even Though The Legislature Adopted Several Approaches In The Past To Lessen The Burden Of Courts, Substantial Number Of Cases Are Currently Pending Before Courts At Different Levels. To Elucidate, About 64,426 Cases Were Pending Before The Hon’ble Supreme Court And Around 4.74 Million And 36.73 Million Were Pending Before The Hon’ble High Court And Hon’ble District Courts Across The Country Respectively. The Above-Mentioned Shortcomings Manifest The Need To Resort To A More Advanced Mechanism To Assure Fast And Efficient Dispute Resolution To All.

Online Dispute Resolution (“ODR”) Has Appeared To Be One Of The Most Potent Solutions In This Tech-Savvy World. It Not Only Leads To Efficient Functioning Of Courts But Also Helps In Resolving Conflicts Online And Thereby Increases Convenience Of Litigants. It Is The Mechanism Where The Disputes Between The Parties Are Resolved By Employing Electronic And Information Communication Technology. This Is Mostly In The Form Of Online Arbitration, Mediation, Conciliation, Or Negotiation. Through This Blog, We Will Discuss On Online Arbitration’, One Of The ODR Forms, Its Process, And Future Impact That It Can Create. In The Subsequent Parts Of This Blog Post, We Will Discuss Online Mediation And Online Conciliation.

What is Online Arbitration?

Arbitration Is An Alternative Dispute Resolution Process Which Is Governed By The Arbitration And Conciliation Act (“A&C Act”). In This Process, A Neutral Third Party I.E. Arbitrator Is Appointed By Both The Parties To Adjudicate The Dispute Between The Parties. Being The Promoter Of ‘Party Autonomy’, It Offers Great Flexibility As The Parties Are Free To Choose The Procedural Applicable To Arbitration. It Has Become A Standard Clause In Most Commercial Agreement And Transactions. Multinational Companies Adopt This Process Because It Is Confidential And Time-Bound Procedure. At The End Of The Arbitration, An Award Is Passed By The Arbitrator Which Is Enforceable Like A Decree Of The Court.

‘Online Arbitration’ Is Employing Technology In Different Parts Of The Arbitration Process To Enhance Its Efficiency. It Includes Online Filing Of Pleadings And Documents, An Online Inspection Of Documents, Etc. The Hearings And Cross-Examination Of The Parties And Witnesses Happen Online Via Video Conferencing. Arbitrator Issues Award Through E-Mail And Provides Digital Signatures To Make The Award Effective. Furthermore, Under Indian Laws, The Domestic Award Has To Be Duly Stamped For Its Proper Execution And Implementation. Thus, These Online Arbitral Awards Are Stamped Online And Are Admissible Before The Court Of Law.

WeVaad Is An End-To-End Tech Enabled Platform That Understands The Significance Of Party Autonomy And Confidentiality. By Blending Technology In Its Process, It Aims To Resolve Disputes In A Time-Bound, Cost-Efficient And Confidential Manner. The Process Followed By WeVaad For Arbitration Has Been Provided Below:

Future of Online Dispute Resolution in India

ODR Has Been Making Its Position Within India Steadily. It Has Come Out As A New Ray Of Hope To Lessen The Burden Of Courts And To Assure Effective Remedy To All. There Are Several Startups Functioning In This Space. The Judiciary Has Time And Again Taken Initiatives By Adopting E-Courts Project, E-Filing System And Launching E-ADR Challenges To Support The ODR Start-Ups. The Government Also Launched WeVaad Se Vishwas Scheme To Enhance Resolution Of Tax Matters Via ODR. Indian Policy Makers Have Also Recognized The Potential And Prospects That ODR Could Offer. Niti Aayog Has Recently Published An ODR Handbook That Provides Case Studies Of Enterprises That Have Successfully Implemented ODR. Further, It States That A Widely Implemented ODR Can Add Whooping INR 1,99,000 Crores To The GDP Of The Country By 2025. The Process Becomes More Client-Friendly, Hassle-Free, And Structured In Approach When Technology Is Employed To Conduct Different Modes Of Dispute Resolution, Including Arbitration. Resultantly, It Could Be More Effective, And Promote Ease Of Doing Business And The Enforceability Of Contracts. With A Wider Implementation Of The Same, Parties Will Be Able To Ensure Time Value Of Money In Any Commercial Matter And Courts Will Be Able To Effectively Manage The Increasing Backlog.

WeVaad Employs Online Dispute Resolution To Help Individuals And Businesses In Faster And Cost-Effective Legal Dispute Resolution. Check Our Online Dispute Resolution Offering To Know More.