The following blog has been authored by Kashvi Shrey, first-year student at Chanakya National Law University, and the third winner in the CNLU Fresher’s Blog Writing Competition 2025-26.
Introduction
Imagine two companies locked in a commercial dispute and they resolve their case not in a courtroom, but via digital platforms. No courtrooms, just laptop and the law, all operating in the digital form. This is not a science fiction but a reality in the legal world. Online Dispute Resolution (ODR) is the resolution of disputes using technology is quiet a revolution. Within the broader umbrella of Alternative Dispute Resolution (ADR), arbitration has been a flexible and time-efficient alternative to litigation. The emergence of ODR has opened a new dimension into arbitration. This blog explores a central question: Can ODR become the future of arbitration in India?
While ODR promises speed and time efficient but its widespread usage depends on the user trust, infrastructure etc. Still, with the right policies and government support, India could emerge as a global ODR leader.
Understanding ODR and Its Relevance to the Arbitration
Online Dispute Resolution (ODR) is the digital extension of traditional dispute resolution mechanisms like arbitration and mediation. It includes technology such as emails, document-sharing platforms, virtual conferencing etc. to facilitate dispute resolution in hybrid mode. In arbitration, ODR allow parties to: file the claims online, submit the documents digitally, conduct virtual hearings via platforms like Zoom or Google Meet, and receive arbitral awards digitally only.
The platforms such as Presolv360, SAMA and Centre for Online Resolution of Disputes offers online arbitration and mediation services. These platforms significantly reduce the cost and time when compared to traditional methods. ODR also makes arbitration more accessible for cross-border commercial disputes.
ODR’s Rise in India: Courts & NITI Aayog
The COVID-19 pandemic catalyzed the Online Dispute Resolution (ODR). When courts shifted to the virtual hearings, arbitration being more flexible adapted more easily to the digital form when compared to litigation. Understanding the change, NITI Aayog also launched the ODR Handbook in 2021 in collaboration with Agami and Omidyar Network India.
This initiative also promoted ODR for efficient resolution of commercial and civil disputes. High Courts of Delhi and Gujarat have already started accepting digital arbitration and arbitral awards. Private institutions, too, began issuing arbitral awards entirely through online hearings.
Legal Framework: Is the Arbitration Act ODR-Friendly?
India’s Arbitration and Conciliation Act,1996 that is drafted in the pre-digital era, is also open to the use of ODR. Section 19 of the act gives the parties freedom to determine their own procedures, which allows them to be flexible in adopting technology-based methods.
Moreover, the Act does not mandate physical presence for arbitration proceedings or the signing of awards which certainly allows for online operations. Some High Courts have already upheld arbitral awards which was through virtual hearings, further legitimizing it.
However, there is no explicit statutory recognition of ODR. For example- there is no direct guideline under the Act that outlines how evidence is to be submitted digitally, or how to address cybersecurity in online hearings. The absence of these codified standards creates uncertainty around enforceability, and jurisdiction when disputes are resolved completely online. There is an urgent need to amend the existing law with clear provisions to legitimize ODR processes, especially for the large-scale commercial arbitration.
Why India Needs ODR in Arbitration?
The Indian judiciary is overburdened with the cases, having more than 5 crore pending cases, according to the data from National Judicial Data Grid. ODR can significantly reduce this burden by diverting the civil and commercial disputes to tech-enabled arbitration platforms which can dispose the case hastely and efficiently. India is also rapidly expanding its digital infrastructure. With initiatives like Digital India there is a high amount of digital awareness among citizens which can be validated through the success of platforms like UPI, Digi Locker etc. Indians are becoming increasingly comfortable when it comes to online transaction making the transition to digital legal services more comfortable.
For cross-border disputes, ODR can also eliminate the need for physical travel which is suitable for startups, small businesses as well who may not have the resources to resolve their issue through litigation. Moreover, ODR offers the efficiency by resolving the disputes in weeks rather than years. It also provides the facility of rescheduling the hearings quickly and sharing the documents instantly. This speed and convenience can lead to a more efficient commercial arbitration culture in India.
Roadblocks Ahead: Is India Ready?
Despite its benefits, several barriers obstruct the full usage of ODR in arbitration:
- Digital Divide: Not all users in India have access to the high-speed internet or digital devices, particularly in rural areas.
- Data Security and Privacy: While sharing the Confidential information during arbitration it needs a secure platform so that data breaches cannot occur and it also doesn’t compromise proceedings.
- Lack of Standardization: The absence of the standardized procedural codes for the digital arbitration affects its consistency and trust among the people in a negative way.
- Resistance to Change: Traditional lawyers and institutions may resist the digital processes due to unfamiliarity towards ODR.
Until these challenges are systematically addressed and implemented with the help of legal reform, ODR will be remain underutilized.
The Current Global Picture: What Can India Learn?
Countries like Singapore, the United Kingdom, and the UAE have integrated institutional ODR as standard procedures. The Singapore International Arbitration Centre (SIAC) and London Court of International Arbitration (LCIA) have adopted hybrid models that integrate digital hearings and online filings with the help of legal backing.
India should also take the learnings from these jurisdictions by- establishing guidelines for digital evidence, recognizing digitally signed awards, promoting ODR awareness for arbitrators and lawyers.
Way Forward
The question is no longer whether ODR will play a role in arbitration, but how soon it can be adopted as a standard procedure. India stands at a intersection of legal reform and digital readiness. ODR has the potential to become the future of arbitration in India that offers justice that is not only timely but truly accessible. After all, justice delayed is justice denied but in the current digital age, justice need not to be distant either.