Note4Students
From UPSC perspective, the following things are important :
Mains level: Insolvency and Bankruptcy Code ;
Why in the News?
The recent Supreme Court judgment in the Jet Airways case has highlighted several major problems in India’s insolvency system.
What is the Insolvency and Bankruptcy Code (IBC)?
- The Insolvency and Bankruptcy Code (IBC), enacted in 2016, is a comprehensive legal framework in India aimed at consolidating the existing laws governing insolvency and bankruptcy.
- It establishes a structured process for resolving insolvency for corporate entities, individuals, and partnership firms, promoting timely resolution and maximizing asset value.
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What are the structural inefficiencies in the current Insolvency and Bankruptcy Code (IBC)?
- Overburdened Tribunals: The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) are tasked with handling both corporate insolvencies under the IBC and cases under the Companies Act. This dual burden leads to inefficiencies and delays in resolving insolvency cases.
- Inadequate Institutional Capacity: The NCLT’s structure, established in 1999, is outdated and does not align with contemporary economic demands. With only 63 sanctioned members, many of whom split their time across multiple benches, the tribunal struggles to manage its caseload effectively, resulting in significant backlogs.
- Lack of Domain Expertise: Members of the NCLT often lack the necessary domain knowledge to handle complex insolvency cases effectively. This deficiency hampers their ability to make informed decisions, as highlighted by the Supreme Court in the Jet Airways case.
- Procedural Delays: The requirement for mandatory hearings for all applications contributes to lengthy delays. The average time for insolvency resolutions has increased, indicating that procedural inefficiencies are exacerbating the situation.
- Ineffective Urgent Listings: There is no robust system for urgent listings before the NCLTs, leading to further delays in critical cases. The discretion given to registry staff regarding case listings can lead to inconsistencies and unpredictability in case management.
- Judicial Discretion Issues: There is a growing tendency among NCLT and NCLAT members to ignore Supreme Court orders, undermining judicial authority and eroding trust in the system.
How can procedural innovations enhance the effectiveness of insolvency resolution?
- Specialized Benches: Establishing specialized benches for different categories of insolvency cases could improve efficiency and ensure that cases are handled by members with relevant expertise.
- Mandatory Mediation: Introducing mandatory mediation before filing insolvency applications could reduce the number of cases entering the formal insolvency process, alleviating pressure on tribunals.
- Streamlined Hearing Processes: Revising the requirement for mandatory hearings on all applications could expedite processes, allowing for more efficient case management and resolution.
- Improved Infrastructure: Investing in adequate courtrooms and permanent support staff is essential to enhance operational capacity and ensure that tribunals can function effectively within the broader economic framework.
What reforms are necessary to transform the IBC into a proactive economic tool?
- Reassessment of Tribunal Structure: A comprehensive review of the NCLT and NCLAT structures is needed to align them with current economic realities and demands, potentially increasing their sanctioned strength and operational hours.
- Focus on Domain Expertise in Appointments: Reforming the appointment process for tribunal members to prioritise candidates with relevant experience in insolvency matters will enhance decision-making quality.
- Encouraging Alternative Dispute Resolution (ADR): Promoting alternative dispute resolution methods within the insolvency framework can help manage caseloads more effectively while providing quicker resolutions for stakeholders.
- Legislative Amendments: Continuous legislative amendments should be made based on empirical data and stakeholder feedback to address emerging challenges within the IBC framework.
- Cultural Shift Towards Credit Discipline: Encouraging a cultural shift that emphasizes credit discipline among borrowers will support a healthier economic environment conducive to investment and growth.
Way forward:
- Strengthen Institutional Capacity and Expertise: Enhance the operational capacity of NCLT and NCLAT by increasing strength by appointing members with domain expertise, and providing adequate infrastructure and support staff to streamline case management and reduce delays.
- Promote Alternative Dispute Resolution (ADR): Integrate mandatory mediation and other ADR mechanisms within the IBC framework to alleviate tribunal workload, ensure quicker resolutions, and foster a collaborative insolvency ecosystem.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Telecom Regulatory Authority of India (TRAI);
Why in the News?
The Telecom Regulatory Authority of India (TRAI) plans to use blockchain technology (DLT) to track and manage customer preferences for blocking spam, according to its chairman, Anil Kumar Lahoti.
What is the Telecom Regulatory Authority of India (TRAI)?
- The Telecom Regulatory Authority of India (TRAI) plays a crucial role in regulating Unsolicited Commercial Communications (UCC), commonly referred to as spam. Established under the Telecom Regulatory Authority of India Act, 1997.
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What is TRAI’s role in fighting spam?
- Do-Not-Disturb (DND) Registry: Launched in 2007, the DND registry allows customers to opt out of receiving commercial calls and messages. Users who register are not supposed to receive any spam communications.
- Telecom Commercial Communication Customer Preference Regulation (TCCCPR): Enacted in 2018, this regulation penalizes telemarketers who violate DND preferences. It includes warnings for offenders and potential blacklisting from sending messages if they accumulate enough violations.
- DND App Development: TRAI collaborated with external agencies to create a DND application that enables users to register their preferences and report complaints. By 2024, it became mandatory for telecom providers to include DND reporting features in their apps.
What role does blockchain play?
TRAI has mandated the use of Distributed Ledger Technology (DLT) to enhance its spam control measures:
- Immutable Record Keeping: Blockchain technology allows for a constantly updated and tamper-proof list of approved SMS senders and message formats. This ensures that only legitimate messages are sent, as each entry is unalterable by any party involved.
- Message Traceability: Regulations require that messages be sent using sender IDs instead of phone numbers, enhancing traceability. This measure helps prevent unauthorized entities from sending spam by ensuring that all message origins are recorded.
- Enhanced Regulations: In 2024, TRAI tightened regulations to ensure complete traceability of messages, addressing previous loopholes that allowed fraudulent registrations on blockchain systems
What are the other steps taken by the government to end spam?
- Sanchar Saathi Portal: This portal includes a reporting platform called Chakshu for complaints about fraudulent calls and messages. It collaborates with law enforcement and banks to identify and cancel numbers associated with unauthorised telemarketers.
- Real-Time Monitoring: The establishment of the Telecom Security Operation Centre enables real-time monitoring of suspicious internet traffic, enhancing the government’s ability to respond promptly to spam-related threats.
- AI-Based Detection: Telecom companies like Airtel have begun using Artificial Intelligence to label suspicious calls as “Suspected Spam,” a practice that is being adopted by other providers as well.
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Way forward:
- Strengthen International Collaboration: Partner with global VoIP providers and international regulators to curb spam and fraudulent calls originating from abroad, ensuring seamless enforcement across borders.
- Promote AI and ML Integration: Expand the use of AI/ML technologies for proactive detection and blocking of spam calls and messages, while continuously improving user-friendly reporting mechanisms.
Mains PYQ:
Q For achieving the desired objectives,it is necessary to ensure that the regulatory institutions remain independent and autonomous. Discuss in the light of experiences in recent past. (UPSC IAS/2015)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Issues related to the UGC;
Why in the News?
Non-BJP-led State governments oppose the UGC’s draft regulation on vice chancellors’ appointments, claiming it violates constitutional federal principles, and have called for its immediate withdrawal.
What are the aims and objectives behind the University Grants Commission Act, 1956?
The University Grants Commission (UGC) Act, 1956 was established to regulate and improve higher education in India. Its key aims and objectives are:
- Coordination and Standardization: Ensuring the coordination and determination of standards in universities to maintain quality education.
- Promotion of University Education: Taking steps to promote, develop, and coordinate university education across the country.
- Allocation of Funds: Allocating financial resources for the maintenance and development of universities.
- Advisory Role: Advising Union and State governments on grant allocation for general or specific purposes in higher education.
- Information Collection: Gathering and disseminating information on university education within India and abroad for institutional improvement.
- Regulation of Fees: Regulating fees to ensure accessibility and fairness in higher education.
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What are the crucial point that needs to be considered?
- Jurisdiction of UGC: The UGC’s authority to regulate the selection and appointment of vice-chancellors is questionable since the UGC Act does not explicitly include these provisions. The primary focus of the Act is on maintaining educational standards, not on administrative appointments.
- Consistency with UGC Act: Any regulation made by the UGC must align with the provisions of the UGC Act. If a regulation extends beyond the scope of the Act, it could be deemed ultra vires (beyond legal authority) and thus invalid.
- Federal Principles: The proposed regulations have raised concerns about violating federal principles enshrined in the Constitution of India, as they may interfere with state legislations that govern universities.
- Legislative Authority: Qualifications and selection criteria for vice chancellors are typically established by state legislatures, highlighting a potential overreach by the UGC in its regulatory role.
- Impact on Educational Standards: The selection and appointment of vice-chancellors should not be viewed as directly impacting educational standards, which is the primary mandate of the UGC.
- Judicial Precedents: Previous court rulings, including those from the Bombay High Court and the Supreme Court, have established important legal precedents regarding the relationship between UGC regulations and state laws, emphasizing that subordinate legislation cannot override state legislation.
- Constitutional Questions: There are ongoing constitutional debates regarding whether UGC regulations can override state laws and how such conflicts should be resolved under Article 254 of the Constitution, which addresses repugnancy between central and state laws.
What is the present ruling made by the judiciary?
The judiciary has provided significant rulings concerning the University Grants Commission (UGC) regulations, particularly regarding the selection and appointment of vice-chancellors.
- Kalyani Mathivanan Case (2015): The Supreme Court ruled that UGC regulations have a binding effect on universities. This ruling emphasized that subordinate legislation, such as UGC regulations, must be adhered to by the universities under its jurisdiction.
- Bombay High Court Ruling (2011): In the case of Suresh Patilkhede vs. The Chancellor Universities of Maharashtra, the court stated that UGC regulations cannot override state legislation. It highlighted that Regulation 7.3.0, being subordinate legislation, does not have the authority to supersede laws enacted by state legislatures.
- Constitutional Context: The rulings also touched upon Article 254 of the Constitution, which deals with repugnancy between central and state laws. It clarified that only a law passed by both Houses of Parliament and assented to by the President can override state legislation, not subordinate regulations like those issued by the UGC.
| Note: Regulation 7.3.0 pertains to the selection and appointment of Vice Chancellors in universities. Its provisions aim to establish minimum qualifications and a transparent process for such appointments, particularly to ensure the maintenance of academic and administrative standards in higher education institutions. |
Way forward:
- Collaborative Federal Framework: Establish a consensus-driven approach between the UGC and State governments to ensure that regulations respect federal principles while upholding academic standards. This can involve creating joint committees for resolving conflicts and aligning policies.
- Judicial Clarity and Legislative Reforms: Seek a definitive constitutional interpretation of the UGC’s regulatory scope through the judiciary, and, if needed, amend the UGC Act to explicitly define its role in administrative matters, ensuring consistency with the federal structure.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Konark Wheels, Sun Temple, Kalinga Architecture
Why in the News?
The Ministry of Mines, in collaboration with the Government of Odisha, has set up the DMF (District Mineral Foundation) Exhibition at the iconic Sun Temple, Konark.
About the Sun Temple
- It is located approximately 64 km from Bhubaneswar, Odisha.
- It was built in the 13th century (around 1250 CE) during the reign of King Narasimhadeva I of the Eastern Ganga Dynasty.
- It is dedicated to Surya, the Sun God.
- It is designed as a massive chariot drawn by 7 horses with 24 intricately carved wheels.
- It was constructed from Khondalite stone, known for its durability and intricate carvings.
- The structure originally included a sanctum (deul) and an assembly hall (jagamohan) that have largely collapsed.
Historical Significance:
- The Konark Wheel, featured on Indian currency (old ₹20 and new ₹10 notes), symbolizes Odisha’s rich cultural heritage and national identity.
- It reflects 13th-century advancements in timekeeping and astronomy through its sundial functionality.
- It embodies the cycle of life and serves as a testament to the worship of Surya, the Sun God.
- It is a key example of the Kalinga architectural style, highlighting the Eastern Ganga Dynasty’s achievements.
Architectural Significance:
- Design: Represents a chariot of the Sun God, drawn by 7 horses, with 24 intricately carved wheels.
- Wheel Details:
- Diameter: 9 feet 9 inches.
- Spokes: 8 wide and 8 thin, symbolizing prahars (three-hour periods).
- Symbolism:
- 7 horses: 7 days of the week.
- 12 pairs of wheels: 12 months.
- 24 wheels: 24 hours in a day.
- Sundial Functionality: Two wheels act as sundials, showing time from sunrise to sunset using the axel’s shadow.
- Carvings: Features intricate designs of foliage, animals, and human figures, showcasing exceptional craftsmanship.
PYQ:
[2012] The Nagara, the Dravida and the Vesara are the:
(a) Three main racial groups of the Indian subcontinent
(b) Three main linguistic divisions into which the languages of India can be classified
(c) Three main styles of Indian temple architecture
(d) Three main musical Gharanas prevalent in India |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IGICB Scheme, NIXI
Why in the News?
The National Internet Exchange of India (NIXI) has introduced the Internet Governance Internship and Capacity Building Scheme, aiming to enhance awareness and develop expertise in Internet Governance (IG) among Indian citizens.
About Internet Governance Internship and Capacity Building (IGICB) Scheme:
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Details |
| About the Scheme |
- Launched by National Internet Exchange of India (NIXI) under MeitY.
- Aims to build expertise in Internet Governance (IG) and enable global participation.
Aims and Objectives:
- Develop Expertise: Build Indian talent in Internet Governance.
- Enhance Global Participation: Collaborate with organisations like ICANN, ISOC, and IETF.
- Promote Digital Inclusivity: Ensure India’s representation in global forums.
- Foster Leadership: Shape future tech policy leaders.
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| Structural Mandate |
- Tracks: Six-month and three-month internship programs.
- Mentorship: Guided by experts from ICANN, APNIC, and academic advisors.
- Support Mechanism: Stipend of ₹20,000/month and support for outreach programs.
- Online Portal: Applications via NIXI Scheme Portal, with biometric verification.
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| Features of the Scheme |
- Global Exposure: Collaboration with leading organisations like ICANN, ISOC, and IEEE.
- Capacity Building: Focus on cybersecurity, Internet Governance, and digital policy.
- Mentorship: Hands-on guidance by seasoned professionals.
- Youth Engagement: Attracts young talent passionate about Internet Governance.
- Policy Impact: Strengthens India’s voice in global Internet Governance forums.
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What is National Internet Exchange of India (NIXI)?
- Establishment: Founded on June 19, 2003, under the Ministry of Electronics and Information Technology (MeitY).
- Purpose: A not-for-profit organisation facilitating increased internet penetration and adoption across India.
- Key Services:
- Internet Exchange Points (IXPs): Builds infrastructure for internet exchange points.
- .IN Registry: Promotes .in domain digital identity.
- IRINN: Facilitates adoption of IPv4 and IPv6 addresses.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Dark Oxygen
Why in the News?
Deep-sea researchers have initiated a groundbreaking project to explore dark oxygen, a form of oxygen produced in complete darkness on the ocean floor.
What is Dark Oxygen?
- Dark oxygen refers to oxygen produced at extreme ocean depths without the involvement of photosynthesis.
- This process occurs in total darkness on the ocean floor, challenging the traditional understanding that sunlight is necessary for oxygen generation.
- It was first discovered in 2024 by researchers studying deep-sea environments.
- The strange nodules found at a depth of 13,000 feet act like natural batteries, splitting water molecules into oxygen and hydrogen using electrical charges.
- These nodules function in areas where light does not penetrate, under extreme pressure and low-temperature conditions.
- Occurrence:
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- Found in specific deep-sea zones, particularly in regions characterized by unique electrochemical activity.
- Occurs in places previously considered incapable of supporting oxygen production.
Features and Significance of Dark Oxygen:
- Unlike traditional oxygen production, dark oxygen does not rely on photosynthesis or sunlight.
- It is driven by electrochemical reactions occurring naturally in the ocean floor.
- Strange nodules on the ocean floor possess an electric charge, enabling them to split water molecules into oxygen and hydrogen.
- The process releases hydrogen, which could potentially serve as an energy source for microbial life in these regions.
PYQ:
[2012] Which one of the following sets of elements was primarily responsible for the origin of life on the Earth?
(a) Hydrogen, Oxygen, Sodium
(b) Carbon, Hydrogen, Nitrogen
(c) Oxygen, Calcium, Phosphorus
(d) Carbon, Hydrogen, Potassium |
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Note4Students
From UPSC perspective, the following things are important :
Mains level: National Disaster Response Force (NDRF)
Why in the News?
The 1st Battalion of the National Disaster Response Force (NDRF) celebrated its 20th Raising Day.
About the National Disaster Response Force (NDRF)
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Details |
| About |
- Constituted under Section 44 of the Disaster Management Act, 2005 for specialized disaster response.
- Functions under the Ministry of Home Affairs (MHA) and is headed by a Director General (DG), typically an IPS officer.
- Initially established in 2006 with 8 battalions, now expanded to 16 battalions.
- Operates under the National Disaster Management Authority (NDMA), chaired by the Prime Minister.
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| Powers and Functions |
- Primary Role: Rescue and relief operations during natural and man-made disasters such as floods, cyclones, earthquakes, landslides, building collapses, and accidents.
- Strategic Deployment: Resources are pre-positioned during imminent disaster situations to minimize damage.
- Active in international relief efforts, including the 2011 Fukushima disaster and the 2015 Nepal Earthquake.
- Provides multi-skilled, highly specialized responses, with capabilities for handling complex disaster scenarios.
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| Composition |
- Consists of 16 battalions, each with 1,149 personnel.
- Personnel are drawn from Central Armed Police Forces (CAPFs): CRPF, BSF, CISF, ITBP, SSB, and Assam Rifles.
- Members are trained in disaster response, relief, and recovery operations.
- Focus on proactive availability and pre-positioning during disasters to ensure quick response.
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IMPORTANT: National Disaster Response Fund (NDRF)
- The NDRF is a statutory body constituted under the Disaster Management Act, 2005.
- It supplements State Disaster Response Fund (SDRF) of a State, in case of a disaster of severe nature, provided adequate funds are not available in SDRF.
- The July 2015 guidelines states that natural calamities of cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst, pest attack and cold wave and frost will qualify for immediate relief assistance from NDRF.
- NDRF is managed in the “Public Accounts” under “Reserve Funds not bearing interest”.
- The Comptroller and Auditor General of India (CAG) audits the accounts of NDRF.
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PYQ:
[2020] Discuss the recent measures initiated in disaster management by the Government of India departing from the earlier reactive approach. |
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