LIJDLR

LEGAL FRAMEWORK IN ONLINE DISPUTE RESOLUTION FOR CORPORATE GOVERNANCE: A COMPARATIVE STUDY OF INDIA AND THE UNITED STATES IN THE ERA OF DIGITAL COMMERCIAL JUSTICE

Rahul Basak, 1st Year,LL.B Student of Amity University Kolkata, (India)

Saptarnab Basu, 1st Year, LL B Student of Amity University Kolkata, (India)

This research examines Online Dispute Resolution (ODR) as an emerging mechanism for transforming corporate and commercial dispute resolution and strengthening corporate governance in digitally enabled markets. It undertakes a comparative legal study of India and the United States to assess whether ODR can deliver faster, more cost-effective, and legally enforceable outcomes for shareholders, investors, creditors, companies, and other stakeholders while preserving procedural fairness, transparency, confidentiality, and data security. The study adopts a doctrinal and comparative approach by analysing statutes, regulatory circulars, judicial precedents, institutional practices, and selected ODR platform models. It contrasts India’s increasingly regulator-led framework, particularly SEBI’s securities-market ODR mechanism, with the United States’ more contract-driven and market-oriented ADR ecosystem, where private institutions and digital platforms play a central role. The paper identifies three central conditions for effective corporate ODR. First, ODR outcomes must rest on clear statutory and contractual foundations concerning enforceability, consent, electronic records, and limited but meaningful judicial review. Secondly, algorithmic tools used in digital dispute systems must be supported by transparency, human oversight, auditability, and safeguards against bias so that efficiency does not undermine due process. Thirdly, corporate ODR requires lawful and secure cross-border data governance, particularly where sensitive commercial records, investor information, and confidential communications are processed through digital platforms. On this basis, the paper proposes a model ODR clause for corporate governance documents, an algorithmic transparency protocol, and targeted policy recommendations for regulators, ADR institutions, and corporate boards. By integrating legal, technological, and governance perspectives, the study offers practical guidance for the responsible adoption of digital dispute-resolution mechanisms in the era of digital commercial justice.

📄 Type 🔍 Information
Research Paper LawFoyer International Journal of Doctrinal Legal Research (LIJDLR), Volume 4, Issue 3, Page 558–582.
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