Vardhan IAS Current Affairs, 26th January 2019

Insolvency and Bankruptcy Code 2016

The Supreme Court 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”.

Source: The Hindu

Background

  • Several operational creditors had argued that IBC doesn’t make an intelligible differentia in the classification of a financial creditor and operational creditor, and hence violates Article 14.
  • Under IBC, the committee can only consist of financial creditors who assess and vote on resolution plans submitted by interested bidders.
  • Section 29 of IBC-This provision disqualifies certain kinds of persons from submitting a resolution plan. By barring promoters from bidding for their own companies, the petitioners had argued, is against the fundamental rights of promoters of a company

SC stand

  • The Supreme Court upheld the ban on promoters to come in as resolution applicants, however, the Section 12A route is open for them.
  • Section 12A of IBC allows for a withdrawal of an insolvency application if 90 per cent of the creditors’ committee by voting share approves it.
  • It also rejected the plea of operational creditors.
  • The court upheld certain relaxations given to micro, small and medium enterprises (MSME) under Section 29A of the Code. The court said the MSME form the “bedrock of our economy” and stringent restrictions through the IBC would adversely affect them.

Features of IBC Code 2016

  • It applies to companies as well as individuals and provides for a time-bound process to resolve insolvency.
  • In case of a default repayment, creditors acquire control over debtor’s assets and decisions must be taken to resolve insolvency within a period of 180 days.
  • The Code also provides a legaislative framework to form a common forum for debtors and creditors of all classes to resolve insolvency.

Insolvency and Bankruptcy Code 2016 Framework

Source: The Bloomburg

MoU between India and Kuwait on recruitment of Domestic Workers

The Union Cabinet has approved the Memorandum of Knowing (MoU) between India and Kuwait for cooperation on the recruitment and stronger safeguards for Indian workers.

The MoU will reward around 3 lakh Indian personnel deployed in Kuwait, which includes 90,000 female domestic staff and encourages bilateral cooperation.

Source: The Times of India

Supreme Court issues contempt notice to RBI

The Supreme Court has issued a notice to the Reserve Bank of India (RBI) on a contempt petition which alleged that the central bank did not provide information about the inspection reports of some banks and on the alleged irregularities in the case of Sahara Group of companies under the RTI Act, 2005.

Article 129 and 215 of the Constitution of India empowers the Supreme Court and High Court respectively to punish people for contempt.

Source: The Indian Express

Global e-waste report 2019

Published by- Platform for Accelerating the Circular Economy (PACE) and the UN E-Waste Coalition.

Platform for Accelerating the Circular Economy (PACE).

  • PACE is a public-private collaboration mechanism and project accelerator dedicated to bringing about the circular economy at speed and scale.
  • It brings together a coalition of more than 50 leaders from business, government and international organizations and is co-chaired by the heads of UN Environment, the Global Environment Facility and Royal Philips.
  • It is hosted by the World Economic Forum.

Source: UN Environment