Smart Contracts in Indian Insolvency: Bridging Legal Gaps with Blockchain Innovation.

Abstract

India’s Insolvency and Bankruptcy Code has significantly reformed insolvency resolution, yet it faces persistent challenges such as procedural delays, inefficiencies, and limited transparency. This paper explores the potential of blockchain technology and smart contracts in addressing these limitations. By leveraging blockchain’s decentralized, immutable, and transparent nature, along with the automation capabilities of smart contracts, various insolvency processes – such as creditor claims verification, asset liquidation, and payouts – can be streamlined. The paper begins with an overview of blockchain technology and its integration into legal frameworks globally. It examines how smart contracts can automate creditor management, prevent fraud, and facilitate real-time asset monitoring. A detailed analysis of the current IBC framework highlights the need for technological adoption to overcome existing inefficiencies. Case studies from jurisdictions like UAE and Singapore offer valuable insights into global best practices and their adaptability into India’s legal landscape.