SC upholds bankruptcy code, cites improved financial flows

GS PAPER - 02 GOVERNANCE - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context:

★Supreme Court on Friday upheld the constitutionality of the Insolvency and Bankruptcy Code (IBC), saying the law sends a clear message that India is no longer “the defaulter’s paradise.”

More about the news:

★The court noted that IBC has witnessed an improvement in the total flow of resources to the commercial sector, both bank and non-bank, and domestic and foreign (relatable to the non-food sector), has gone up from a total of Rs14,530.47 crore in 2016-2017 to Rs 18,469.25 crore in 2017- 2018 to Rs 18,798.20 crore in the first six months of 2018-2019.

★The court upheld certain relaxations given to micro, small and medium enterprises (MSME) under Section 29A of the Code. It the MSME form the “bedrock of our economy” and stringent restrictions through the IBC would adversely affect them. That is, instead of resolving crisis, it would lead to the untimely liquidation of MSMEs.

★The court said the relaxation for MSMEs is proof that the legislature is alive to the anomalies within the Code and is taking steps to rectify them.

 Bharat Ratna for Pranab, Deshmukh, Hazarika

GS PAPER - 03 AWARD AND ACHIEVEMENTS

Context:

★Former president Pranab Mukherjee, Bharatiya Jana Sangh leader Nanaji Deshmukh and singer Bhupen Hazarika were conferred the country's highest civilian award Bharat Ratna.

Bharat Ratna:

★Bharat Ratna – ‘Jewel of India’ is the highest civilian award of the country.

★It is conferred for exceptional Service to the nation in various fields such as Science arts, literature and in recognition of public service of the highest order.

★The award was established by former President of India Rajendra Prasad on 2nd January 1954.

★First Bharat Ratna was awarded to Sarvepalli Radhakrishnan, Sir C.V. Raman, and Chakravarti Rajagopalachari in 1954.

★The medallion is cast in Bronze.

★The medallion is designed like the leaf of peepal tree with sunburst in the center and Bharat Ratna is engraved underneath it.

★On the backside, Indian emblem of India is embossed and Satyameva Jayate is inscribed in Devanagari script.

★The medallion is worn around the neck using white ribbon.

★The award does not carry any monetary endowment.

★The recommendations for Bharat Ratna are made by the Prime Minister to the President.

★The number of yearly awards is constrained to a maximum of three in a specific year.

                                                                                                       Source:;- The Hindu

10% reservation for the poor challenged in SC

GS PAPER - 02 GOVERNANCE - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context:

★The Supreme Court on 25 Jan 2019, decided to examine the Centre’s decision to grant 10 per cent reservation in jobs and education to poor candidates belonging to general category.

More about the news:

★A bench comprising Chief Justice Ranjan Gogoi and Justice Sanjiv Khanna issued notice to the central government on various petitions challenging the validity of the Constitution (103 Amendment) Act, 2019

★However,the bench did not stay the operation of the Centre’s decision granting quota to the poor in the general category.

☆The decision not to stay the legislation means the Centre and states are free to implement the 10% EWS quota subject to the final verdict on its constitutional validity.

☆Some states, including Gujarat and Telangana, have already started implementation of the 10% quota.

Petitioner Challenge to constitutional Amendment :

★The petitions were filed by parties including organisations like Janhit Abhiyan and Youth For Equality challenging the Centre’s decision.

★The petition, filed by Youth For Equality, has sought the quashing of the bill saying that the economic criterion cannot be the sole basis for reservation.

★Most of the petitioners challenged the 10% EWS quota, which would be granted to poor persons irrespective of religion, on the ground that it will take the total reservation to 59.5%, which is in excess of the 50% ceiling fixed by the SC.

★In addition, the SC in Indra Sawhney judgment struck down 10% EWS quota and said, “Though the criteria is not yet evolved by the government of India, it is obvious that the basis is either the income of a person and/or the extent of property held by him.

★The impugned memorandum does not say whether this classification is made under Clause (4) or Clause (1) of Article 16.

★In Indra Sawhney and subsequent judgments, including Asoka Thakur that in 2008 upheld 27% OBC reservation in admissions to government-run or government-aided educational institutions,

★The court had consistently insisted that while caste could be the starting point for identification of backwardness, but sooner or later this needs to be done through quantifiable data on numbers and status. No government has till date taken up any survey or empirical study to identify backwardness on grounds other caste.

                                                                                                                 Source:- The Hindu

SC issues contempt notices to RBI

GS PAPER - 02 GOVERNANCE - Separation of powers between various organs dispute redressal mechanisms and institutions

Context:

★The Supreme Court on 25 Jan 2019 issued contempt notices to the RBI for for alleged violation of a judgment passed by the Court in 2015.

★The RBI  failing to reveal under the Right to Information Act intelligence received on loan defaulters and details of action taken against banks in connection with fraud.

Background:

★Over three years ago, the Supreme Court in Reserve Bank of India v. Jayantilal N Mistry, had directed the disclosure of information sought for under the Right to Information Act (RTI Act) relating to individual banks regulated and supervised by the RBI.

★Then, in 2016, the RBI issued a Disclosure Policy, as per which its Public Information Officers (PIOs) were directed not to disclose information, even the kind of information directed to be disclosed by the Court in 2015.

Issue:

★Petitions filed in the supreme court alleged that, instead of sharing information, the RBI has brought in policy changes that allow withholding of most information.

★The petitioner alop added, the RBI has failed to abide by the court’s three-year old order.

★Further, it is claimed that the Policy in question is also in violation of the provisions of the RTI Act, as it instructs the RBI’s PIOs not to furnish the information.

                                                                                      Source:- Economic Times

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