Arbitration is one of the evolving methods in the resolution of disputes between parties outside the court. With technological advancement all around the world, online dispute resolution is a recent term invented. Online Dispute Resolution (ODR) “refers to a wide class of alternate dispute resolution processes that take advantage of the availability and increasing development of internet technology”. Thus, Online Dispute Resolution is resolving the disputes of the parties, parties without being in person and with the use of technology. Another reason which promoted online dispute resolution is the common usage of e-commerce.
WHY OR WHY NOT CHOOSE – ARBITRATION IN CYBERSPACE?
Arbitration in cyberspace comes under the purview of online dispute resolution. Arbitration in cyberspace includes discussing several factors through online mediums like digital signature, determining the geographical location of the server where the arbitration will take place, place of signing of the award passed by the arbitrator etc. One of the key benefits of this form of arbitration is that parties need not travel for the resolution of disputes. Since arbitration proceedings are confidential proceedings between the arbitrator and the parties involved in the case, arbitration[i] in cyberspace does not fully fulfil this. There is a high chance that hackers may hack the proceeding’s confidential data and therefore it arises to trust issues between the parties involved in arbitration in cyberspace.
There are several countries which still favour litigation as the primary mode of resolution of disputes. In those countries, court dispute resolutions are termed as ‘alternative’ which reflects that litigation will continue to prevail. Arbitration in cyberspace in those countries will then prevail only if the other legislations in that country begin to legal recognition to it. For instance, the Information Technology Act, 2000 in India can play a key role in the development of Arbitration in cyberspace through some amendments which can excel in its growth. Similarly, parties dealing with arbitration in cyberspace can be regulated with the provisions and sections of the Information Technology Act, 2000. This will probably create a good sense of trust among the parties and more parties will begin to choose this Arbitration.
ARBITRATION IN CYBERSPACE- HOW CAN BE POSSIBLE?
Thus, arbitration in cyberspace can only excel in its growth primarily with amendments brought by the statutes/legislations connecting it. Secondly, a good well-established infrastructure can lead to the growth and development of arbitration in cyberspace. Currently, India and most countries are not having an established structure of online dispute resolution. Thirdly awareness among the people can also lead to the development of arbitration in cyberspace as currently many people refuse to choose online mediums due to trust issues.
CONCLUSION
It has been good growth in out-of-court resolution of disputes. However, Arbitration in cyberspace has not been developed and still, parties face a lot of issues while dealing in the resolution of cross-border disputes electronically. However, with technological development at a rapid pace, it cannot be denied that arbitration in cyberspace will soon be a reality.
[i] https://scholarlycommons.law.case.edu/cgi/viewcontent.cgi?article=1288&context=cuslj (Al Nenstiel, “Online Dispute Resolution: A CanadaUnited States Initiative” (2006) 32 Can.-U.S. L.J. 313)
Name: MUNIS NASIR
College Name: HILSR, Jamia Hamdard, New Delhi
Semester: 10th (5 year B.A. LL.B)