ADR as an adequate tool to the commercial world

  1. Lex mercatoria, an E-Commerce directive, from European Union, requiring states to ensure that parties to the dispute are not obstructed to go for ADR mechanism and using electronic tools for settlement, this kind of corresponding law is required to be framed in order to encourage ADR in India.[1]
  2. Encryption and other security protocols has to be adopted more, with the features of sophisticated server, convoluted passwords and software which back up the data submitted by parties very easily in a sheltered and preserved environment and hard to discovered by hackers. Such type of technical framework has to be framed to mitigate the risk of breach of privacy.
  3. Many privileges like, buyer protection provisions, money back guarantee and authentication seals are to be recognized on E-Commerce to spawn trust among consumer. ODR mitigates the animosity, as personal communication is not there
  4. Translator to be developed in order to overcome language differences and cultural barriers.
  5. There is no separate legal framework yet which promotes the ODR in India, and during the sessions of ODR, if any problem arises, then the solution would be traditional arbitration procedure which means there is no legislative regulation to aid ODR so, a need of specific legislation in regards of ODR to be framed primarily and implemented comprehensively.
  6. Measures to combat cyber-insecurity to be framed extensively, keeping aside information technology principles as they vary from country to country and are for domestic purpose to prevent the cyber crime.
  7. The control for online arbitration should be coordinated in order to refrain variations in the different local regulations and a correspondent legal framework scheme to be developed
  8. Independent online arbitration bar and online procedure to be entrenched worldwide which provides the model law to each country, so that they can make and implement law accordingly.
  9. Awareness programs among the nations that ODR mechanism is an adequate and effective tool to the commercial world as dispute settlement.
  10. For appropriate and convenient mechanism of ODR, legitimate framework should be originated with the fundamental arbitration principles.
  11.  Requirement of specially designed ODR mechanism institutions that can administered training, education, research, policies, and infrastructure which is despair is urgently needed for the ODR to be successful in India.
  12. The Internet is open to public and can be accessible by all which increases the risk of cyber-threat, so, instead of using it, closed system platform which uses private lines to communicate should be preferred.
  13. Procedure followed by traditional courts are bulky, time taking and costlier, so to get the expeditious remedy, ADR has to be developed and encouraged more in developing countries.


In the times of Covid era, arbitration proceedings are moving towards the digitization, and calls for the security protocols to curb the cyber attacks are becoming clearer day by day. As ODR is the new concept in India unlike International Arbitration where the dispute is settled promptly and cost efficiently and their main concern is keeping their trade secrets and other information confidential. Arbitral institutions have the burden to recognize the cyber danger as they will weaken the purity form of arbitration and scrutinize the cyber-security measures while the adoption of automatized tools of arbitration. The inadequate direction will result into critical consequences such as reputational damage and violation of privacy to overall arbitration members and proceedings. It is important to include ODR within arbitration and make it a common practice of justice delivery as it consolidates necessary security protocols. Indirectly Covid-19 is inciting improvement and highlights the propensity of ODR in directing hurdles of justice mechanism and will possibly accumulate security concerns. Information Technology plays an important aspect in aiding the character of ADR practices through more adequate control, training, management of information, research work, evaluation, speeding the process which results time efficiency and in controlling abundant of records.

[1] Stephan W Schill,Lex mercatoria, Oxford Public International Law (June 2014)

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