An Analysis On Sharing Economy And The Law Navigating Bankruptcy Challenges in India's Digital Platform

The sharing economy has reshaped India's digital and labour landscape through platforms like Uber, Swiggy, and UrbanClap, offering flexibility and new income opportunities while challenging traditional legal structures. This paper examines the intersection of the sharing economy and bankruptcy law, focusing on how India's current frameworks particularly the Insolvency and Bankruptcy Code (IBC), 2016 and the Code on Social Security, 2020 address financial distress in platform-based enterprises. It highlights key issues such as ambiguous employment classification of gig workers, lack of algorithmic transparency, and inadequate recognition of digital assets during insolvency proceedings. Through comparative analysis with global frameworks, including the EU's Platform Work Directive and reforms in Australia, Canada, Brazil, and Singapore, the paper identifies crucial legal gaps and offers recommendations for reform. These include clearer worker classification, priority for wage claims, valuation of digital assets, social security contributions, and centralized digital grievance mechanisms. The study argues that while India has made important strides in regulating gig work, the current framework remains insufficient to protect workers in platform insolvencies. Strengthening transparency, accountability, and worker rights is essential to ensure that India's rapidly expanding sharing economy remains equitable, sustainable, and resilient in the face of financial instability.