General Studies-III
Topic- Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2020
Context
IBBI amends the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.
About
The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2020.
What are amendments?
- A person, who is not eligible under the Code to submit a resolution plan for insolvency resolution of the corporate debtor, shall not be a party in any manner to a compromise or arrangement of the corporate debtor under section 230 of the Companies Act, 2013.
- A secured creditor cannot sell or transfer an asset, which is subject to security interest, to any person, who is not eligible under the Code to submit a resolution plan for insolvency resolution of the corporate debtor.
- The amendment provides that a secured creditor, who proceeds to realise its security interest, shall contribute its share of the insolvency resolution process cost, liquidation process cost and workmen’s dues, within 90 days of the liquidation commencement date.
- It shall also pay excess of realised value of the asset, which is subject to security interest, over the amount of its claims admitted, within 180 days of the liquidation commencement date.
- Where the secured creditor fails to pay such amounts to the Liquidator within 90 days or 180 days, as the case may be, the asset shall become part of Liquidation Estate.
Insolvency and Bankruptcy Code, 2016
- Insolvency and Bankruptcy Code, 2016 is considered as one of the biggest insolvency reforms in the economic history of India.
- This was enacted for reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons.
- The Code also consolidates provisions of the current legislative framework to form a common forum for debtors and creditors of all classes to resolve insolvency.
Key features of the Insolvency and Bankruptcy Code
- The Insolvency and Bankruptcy Code 2016 is a comprehensive law and covers all individuals, companies, Limited Liability Partnerships (LLPs) and partnership firms.
- The adjudicating authority is National Company Law Tribunal (NCLT) for companies.
- LLPs and Debt Recovery Tribunal (DRT) are the adjudicating authority for individuals and partnership firms.
- The insolvency resolution process can be initiated by any of the stakeholders, i.e. firm/ debtors/ creditors/ employees.
- The code aims to– resolve insolvencies in a strict time-bound manner – the evaluation and viability determination must be completed within 180 days.
- Moratorium period of 180 days (extendable up to 270 days) for the Company.
- For start-ups and small companies the resolution time period is 90 days which can be extended by 45 days.
- Introduce a qualified insolvency professional (IP) as intermediaries to oversee the Process.
About Insolvency and Bankruptcy Board of India (IBBI)
- The Insolvency and Bankruptcy Board of India (IBBI) was established under the Insolvency and Bankruptcy Code, 2016 (Code).
- IBBI is the regulator for overseeing insolvency proceedings and entities like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India.
- The new code will speed up the resolution process for stressed assets in the country.
- It attempts to simplify the process of insolvency and bankruptcy proceedings.
- It handles the cases using two tribunals like NCLT (National company law tribunal) and Debt recovery tribunal.
- It functions under Ministry of Commerce.
- It covers Individuals, Companies, Limited Liability Partnerships and Partnership firms.
General Studies- II
Topic- Indian Constitution—historical underpinnings, evolution, features, amendments, significant provisions and basic structure.
Fundamental Duties in Constitution
Context
Department of Justice organizes Quiz & Talk competition on ‘Constitution and Fundamental Duties’
About
- The Department of Justice (DoJ), Government of India has organized a Quiz and Talk competition on the theme of ‘Constitution and Fundamental Duties’.
- The event was held in collaboration with the Delhi State Legal Services Authority.
About Fundamental Duties
- The idea of Fundamental Duties is inspired from the Constitution of Russia.
- These are incorporated in Part IV-A of the Constitution by the 42nd Constitutional Amendment Act, 1976 on the recommendations of Swaran Singh Committee.
- There were 10 fundamental duties in original.
- One more duty was added through the 86th Constitutional Amendment Act, 2002.
- All the eleven duties are listed in Article 51-A of the Constitution.
- Article 51-A is the sole Article in Part-IV-A.
Objective of Fundamental Duties
- The fundamental duties serve as a reminder to citizens that while enjoying their rights.
- They have also to be quite conscious of duties they owe to their country, their society and to their fellow-citizens.
- These duties are non-justiciable in nature like the Directive Principles.
List of Fundamental Duties
- To abide by the Constitution and respect its ideals and institutions, the National Flag and the National Anthem;
- To cherish and follow the noble ideals that inspired the national struggle for freedom;
- To uphold and protect the sovereignty, unity and integrity of India;
- To defend the country and render national service when called upon to do so;
- To promote harmony and the spirit of common brotherhood amongst all the people of India transcending religious, linguistic and regional or sectional diversities and to renounce practices derogatory to the dignity of women;
- To value and preserve the rich heritage of the country’s composite culture;
- To protect and improve the natural environment including forests, lakes, rivers and wildlife and to have compassion for living creatures;
- To develop scientific temper, humanism and the spirit of inquiry and reform;
- To safeguard public property and to abjure violence;
- To strive towards excellence in all spheres of individual and collective activity so that the nation constantly rises to higher levels of endeavour and achievement; and
- To provide opportunities for education to his child or ward between the age of six and fourteen years (added by the 86th Constitutional Amendment Act, 2002).
General Studies- II
Topic- Development processes and the development industry —the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.
NetSCoFAN
(NETWORK FOR SCIENTIFIC CO-OPERATION FOR FOOD SAFETY AND APPLIED NUTRITION)
Context
Union Health Minister launched NetSCoFAN, a network of research & academic institutions working in the area of food & nutrition.
About
- The NetSCoFAN would consist of eight groups of institutions working in different areas:
- “Biological, chemical, nutrition & labelling, food of animal origin, food of plant origin, water & beverages, food testing, and safer & sustainable packaging”.
- FSSAI has identified eight Nodal Institutions who would develop a ‘Ready Reckoner’.
- The ‘Ready Reckoner’ will have inventory of all research work, experts and institutions and would carry out and facilitate research, survey and related activities.
Why it is needed?
- It would identify research gaps in respective areas and collect, collate and develop database on food safety issues for risk assessment activities.
- The need for identify research gaps will be addressed by NetSCoFAN.
- The NetSCoFAN directory would be covering detailed information of various heads/Directors and lead scientists of lead and associated partnering institutions.
For Prelims
‘Karmayoddha Granth’
Highlights
- ‘Karmayoddha Granth’, is a book on the life of Prime Minister Shri Narendra Modi.
- The Home Minister narrated the challenges faced by Shri Modi, from natural calamities to social upheavals in this book.
‘Zo Kutpui’ festival
- Mizoram govt is organizing ‘Zo Kutpui’ globally to unify Mizo tribes.
- The first festival would be held at Vanghmun, a hub town of Mizos in neighbouring Tripura.
- The event will witness cultural programmes and traditional songs from various Mizo tribes from Mizoram and other northeastern states.
- The event aims at re-unifying and strengthening brotherhood among different tribes of Mizo.
