India can be at forefront of global online dispute resolution movement: Niti Aayog

Niti Aayog on Monday said India can be at the forefront of the global online dispute resolution movement and suggested that the government should take targeted initiatives like setting up legal tech hubs and tax incentives for the private sector to enable faster adoption of ODR.

Retired justice AK Sikri-led committee on the action plan for online dispute resolution -- set up by the Aayog -- has suggested in its report that the government builds up requisite infrastructure and sufficiently enhances capacity if it intends to mainstream ODR and make it broad-based in India.

"India can be at the forefront of this global ODR movement...However, to give a boost to ODR in India, the government and the judiciary must lead by example," the report said.

Online dispute resolution is the use of technology to resolve disputes.

"It is important that the private sector be encouraged to innovate and grow in the years to come so that both the dispute resolution ecosystem and the government can benefit in the long run.

"To this end, targeted initiatives such as setting up of legal tech hubs and tax incentives can be introduced," it said.

According to the report, while access to digital infrastructure is necessary for the inclusion of the end-user, an increase in the capacity of the professionals and service providers is necessary if ODR is to be scaled up in India.

It suggested that the government can adopt this light-touch regulatory model through a two-pronged approach that uses legislative and non-legislative tools.

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"First, it can amend the existing legislations to incorporate ODR and introduce mandatory pre-litigation online mediation for certain classes of cases," it said, adding that to increase the likelihood of success, an opt-out model can be adopted.

Second, the report said, it can introduce a set of voluntary principles that act as the ideal set of standards that stakeholders can follow.

"However, this light-touch regulatory model does not need to indefinitely be adopted. With an increase of entrants into the market, diversity of technology innovations and practices, a more proactive approach to regulation can be considered for the future," it suggested.

Noting that a pre-condition for all technology-related innovations, including ODR, is widespread access to digital infrastructure, the report said such access should not just be understood to mean physical access to technology and its tools but also include its utilisation and thus necessitate digital literacy.

"To unlock ODR's true potential, users of such technology should be digitally literate," it said.

The report pointed out that the potential for ODR was on the verge of being recognised globally when the COVID-19 pandemic hit across nations.

It said ODR's benefits are also manifold.

"It is cost-effective, convenient, efficient, allows for customisable processes to be developed and can limit unconscious bias that results from human interactions," the report noted.