Open Access Research Article

CODE BEFORE CONSENT? BLOCKCHAIN ESCROW AND THE PROCEDURAL SAFEGUARDS OF ARBITRATION IN INDIA

Author(s):
DHRUV GANDHI ANWESH BHOWMICK
Journal IJLRA
ISSN 2582-6433
Access Open Access
Volume 3
Issue 7
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Abstract

Blockchain escrow allows parties to lock digital tokens in a smart contract and release them automatically when agreed conditions are met. This arrangement can make payment faster and reduce dependence on a traditional escrow agent. However, automatic execution becomes problematic when a party disputes the condition that triggers payment. A transfer may occur before an arbitrator hears the parties, before interim relief is available, or immediately after a decision that does not satisfy arbitration law. The practical result can be enforcement before procedural fairness. This paper examines whether automatic token transfers can bypass the safeguards of arbitration in India. It distinguishes the technical execution of code from the legal enforcement of an arbitral award. It argues that a completed blockchain transfer does not prove that the payment was legally justified, that an arbitration agreement was valid, or that a dispute was decided fairly. The Arbitration and Conciliation Act 1996 continues to govern applicable arbitrations even when parties use digital assets and automated payment systems. The paper examines consent, equal treatment, notice, disclosure of evidence, interim protection, reasoned awards, challenges, and foreign-award recognition. It also considers the difficulty of obtaining restitution after tokens move to an unknown or foreign wallet. It proposes a hybrid escrow model with a dispute-triggered pause, a legally identifiable seat, independent arbitrators, a limited release window, and an enforceable recovery obligation. Blockchain should support arbitration rather than replace its safeguards. The central recommendation is simple: disputed funds should not become irreversible merely because payment has been made technically automatic.  

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Authors: DHRUV GANDHI & ANWESH BHOWMICKRegistration ID: 1013376 | Published Paper ID: IJLRA13376 & IJLRA13377Year: Oct-2026 | Volume: 3 | Issue: 7Approved ISSN: 2582-6433 | Country: Delhi, IndiaPage No.: 1265- 1276

Article Information

CODE BEFORE CONSENT? BLOCKCHAIN ESCROW AND THE PROCEDURAL SAFEGUARDS OF ARBITRATION IN INDIA

Authors: DHRUV GANDHI, ANWESH BHOWMICK

  • Journal IJLRA
  • ISSN 2582-6433
  • Volume 3
  • Issue 7
Citation Download Paper Full Details Search on Google Search on Google Scholar

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International Journal for Legal Research and Analysis

  • AbbreviationIJLRA
  • ISSN2582-6433
  • AccessOpen Access
  • LicenseCC 4.0

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