India DPDPA: Article 31 – Alternate Dispute Resolution
31. Alternate Dispute Resolution
If the Board is of the opinion that any complaint may be resolved by mediation, it may direct the parties concerned to attempt resolution of the dispute through such mediation by such mediator as the parties may mutually agree upon, or as provided for under any law for the time being in force in India.
What Article 31 Means for Your Business
Article 31 allows parties to DPDPA proceedings to resolve disputes through alternate dispute resolution (ADR) mechanisms. This provides a faster and potentially less costly pathway to resolution compared to full Board adjudication.
- ADR may be available for certain categories of disputes, explore this option early in any Board proceedings to assess whether a negotiated resolution is achievable.
- Settlements reached through ADR must be approved by the Board, they are not simply private agreements and must meet the Board’s standards for adequacy.
- ADR may allow for remediation commitments rather than purely financial penalties, this can be preferable for organisations that have taken genuine steps to address a breach.
Frequently Asked Questions about Article 31
+ What does Article 31 of the DPDP Act cover?
Article 31 allows disputes under the DPDP Act to be resolved through alternate dispute resolution methods such as mediation.
+ What is Alternate Dispute Resolution (ADR)?
ADR refers to resolving disputes outside formal legal proceedings, typically through mediation or negotiation.
+ Who decides if ADR will be used?
The Data Protection Board may direct parties to attempt mediation if it believes the dispute can be resolved through ADR.
+ Can businesses choose the mediator?
Yes. The parties may mutually agree on a mediator, or follow procedures prescribed under applicable laws.
+ Why is ADR beneficial for businesses?
ADR provides a faster, less costly, and more flexible way to resolve disputes while maintaining business relationships and reputation.