Virtual Arbitration: The way forward

With the COVID-19 pandemic causing arbitration practitioners globally to look at alternative methods to ensure timely dispute resolution, virtual arbitration service providers are convenient, cost effective and efficient. There have been many voices raised against the virtual arbitration proceedings and the scepticism is understandable, what with cross examination and data breaches or ineffectiveness of virtual hearings. In our experience in a recent virtual arbitration proceeding conducted through third party service provider - Centre for Online Dispute Resolution (CODR), virtual arbitration is definitely a way forward and comes highly recommended from us. However, here are few points that one must bear in mind when opting for virtual arbitration and how CODR helped us in overcoming the same.  

Briefly, the arbitration proceeding was to commence in March, 2020 but due to nationwide lockdown, it was postponed. In May, the Hon’ble Presiding Arbitrator directed us to look at virtual arbitration as an alternative. CODR, as third party service provider, came highly recommended and their entire team provided smooth service at significantly low costs. For virtual arbitration to effectively take place, choosing the right technology or technological partner is extremely important. The entire basis of conducting a virtual hearing is primarily based on the foundation of a strong technology. Choice of technology makes all the difference since it can be an enabler or cause obstruction. Important points to consider while choosing the technological partner will be:

1.     Technical abilities of the participants: Sometimes it is seen that the participants may not be very tech savvy which makes it pertinent to choose a technology platform which is user-friendly and does not require any specific or special technology. It is often seen that when technology is to be adopted, the first reaction is to discard technology and revert to status quo. However, adapting to technology helps us in not only conquering personal fear of technology but also can be extremely cost effective. CODR provided training sessions for familiarity of the platform, including specifically to the arbitrators well in advance of the hearing, at no added cost. They also provide tech-support throughout the proceeding, in the unlikely event there is any technical help that is required.

 2.     Video and audio and uninterrupted Internet service provider: The key to an effective hearing is that the arguments can take place seamlessly. If a document has to be shared or any communication between the participants is required, all of this should be as effortless as possible without much distraction. Most of the softwares which are enabling virtual hearings do not require any added infrastructural requirement. The only key is that the inbuilt mic or external mic and camera are of superior quality and the internet speed is uninterrupted and of 4G and above or fibernet. 

 3.     Hearing Rooms and Break Out Rooms: Despite the participants being stationed in different parts of the country, the proceedings are seamless and without any interruptions. The Registrar creates Hearing Rooms where every participant is present and the proceeding takes place while there are breakout rooms also to make subgroups (eg. Claimant team, Respondent team, Arbitral Tribunal etc) which are effective when utilised to have private caucus. The Rooms allowed communication through messaged, document uploads, audio messages and video conferencing.

 4.     Document sharing, security and confidentiality: Considering the number of documents that are required to be shared in a typical arbitration proceeding, many third-party service providers provide storage space which renders all documents at one place and makes it easily accessible for all parties and participants. As for confidentiality and security, there are multiple checks including, password based login, pre-authenticated access control, encrypted storage on a secure cloud etc. to ensure that there is no breach of security. One may find themselves highly susceptible in zoom environment but CODR platform guarantees high data security and confidentiality. The Registrar at CODR also ensures that the documents are named and uploaded in a manner that it is extremely easy to find and navigate.

 5.     Notice of arbitration dispatch and tracking: For any arbitration process to commence, it is absolutely critical that there is a streamlined process for generating, dispatching and tracking of notices. CODR Registrar ensured that the service of procedural hearing notice was effected and it was at their end that they co-ordinated and provided the requisite training to the Defendants and their advocates. They ensured that all the participants were trained before the actual proceedings and were ready with recording services also. 

 6.     Stenographer, Recording, Transcription and interpretation services: The third-party service providers ensure amongst other things, recording, stenographer services, transcription and interpretation services at nominal charges. The charges quoted by CODR are very reasonable. 

 7.     Housekeeping Rules: Establishing House-keeping rules is very important. CODR established independent and basic housekeeping rules before the commencement of arbitration proceedings. This ensured there was minimum interference and that abrupt noises or videos were not popping up and causing unwanted intrusions. 

 There is a guide which is published by Maharashtra National Law University, Mumbai which provides an in-depth coverage on the important points for Virtual Arbitration. The same can be downloaded from http://mnlumumbai.edu.in/car.php

Centre for Online Dispute Resolution (CODR) which is the third party technology service provider can be reached at https://www.codr.co.in/#/home and request for platform demo can be booked on it.

Please note that this is not meant for advertising of the CODR platform but only a first-hand experience of using their platform for virtual arbitration.

For more information on virtual arbitration, you can write to us at pallavi.pratap@pratapandcompanny.com

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PALLAVI PRATAP

She is Managing Partner of Pratap & Co. - a litigating law firm. She is an Advocate-on-Record in Supreme Court and practices in High Court and various Tribunals including NCLT, NCLAT, NCDRC, NGT, DRT. Qualified MBA in Finance from La Trobe University, Melbourne, Australia and LL.B from Lucknow University, she brings with her more than a decade of experience in legal affairs .