💥Mains Ready By December. Smash Mains & Smash PYQ Admissions Open

Search results for: “”

  • Can someone please explain the gravitational waves?

    In easy to understand layman terms, please….

  • Question of the Day

    Critically examine WTO-Nairobi Package and its implication on India?

  • Important judgements of Supreme Courts in 2015 | Part 1


     

    #1. NJAC held unconstitutional

    Supreme Court Advocates on Record Association vs. Union of India

    “The judiciary cannot risk being caught in a web of indebtedness towards the government.”

    It is after 35 years that a constitutional amendment has been quashed by the top court.

    Summary:

    Within a year of both houses of Union Legislature passed much awaited National Judicial Appointments Commission Bill, the Supreme Court struck down the NJAC Act by 4:1. Justices J S Khehar, MB Lokur, Kurian Joseph and Adarsh Kumar Goel declared the 99th Amendment and NJAC Act unconstitutional while lone minority, Justice Chelameswar upheld it. The judgement rendered by five judges runs over 1000 pages.

    Major observations of the Supreme Court:

    • Does not provide an adequate representation, to the judicial component in the NJAC.
    • Insufficient to preserve the primacy of the judiciary, in the matter of selection and appointment of Judges, to the higher judiciary (as also transfer of Chief Justices and Judges, from one High Court to another)
    • The Law Minister:

    The inclusion of the Union Minister of Law and Justice as an ex officio Member of the NJAC is:

     

    • ultra vires the provisions of the Constitution, because it impinges upon the principles of “independence of the judiciary” & “separation of powers
    • Violative of the “basic structure” of the Constitution
    • Against Principles of Natural Justice: Because Government is the major litigant and cases involve large sums of money. And inclusion of Law Minister would be against “judge of own case“, a part of PNJ.

     

    • Will of the people: The Union government had previously argued that NJAC represented the will of the people. However, rejecting the Centre’s argument, court noted that “the will of the people is the Constitution while the Parliament represents the will of the majority at a given point of time which is subordinate to the Constitution”.

    Culture of Reciprocity: Bench feared a culture of “reciprocity” of favours: FEELINGS OF PAY BACK TO POLITICAL-EXECUTIVE WOULD BE DISASTROUS TO THE INDEPENDENCE OF JUDICIARY, especially when govt is the major litigant in higher courts.


     

    #2. Yakub Memon & the midnight hearing

    Yakub Abdul Razak Memon vs. State of Maharashtra

    Summary:

    The year 2015 witnessed a rare event of the Apex Court opening its gates for hearing an urgent Writ petition. Yakub Memon’s final plea before the Apex Court was heard in Court Room 4 which was opened for an unprecedented 90-minute hearing that started at 3.20 AM and ended a little before dawn. The Bench comprising Justice Dipak Misra, Justice Amitava Roy and Justice P.C. Pant agreed and observed that granting further time was not necessary in the present case. The bench said the execution was “inevitable” after rejection of the mercy petitions. Yakub was executed the very next day on his birthday.

    Background:

    • Memon, a CA by profession was awarded the death sentence by a special TADA Court in Mumbai on July 27, 2007 for his role in the serial blasts.
    • Charges also included arranging finances for carrying out the 13 serial explosions.
    • Explosions left 257 dead and over 700 injured across the city on March 12, 1993.
    • In 2013, Supreme Court had upheld the TADA Court verdict convicting Memon for his role in the Bombay blasts.
    • Memon is the only one of 11 people whose death sentence in the case has been upheld. The sentences of the others were commuted to life imprisonment.

    Observations of the Supreme Court:

    • Stay on the death warrant could be a ‘travesty of justice‘: since ample opportunity was provided to Memon, after the rejection of the first mercy petition.

    Memon’s review petition was heard for ten days, when law mandates a hearing of only half an hour.

    • The President rejected after due consideration of all relevant fact. 22 years have passed since the incident. There is no error in judgments passed by this court.
    • At the drop of a hat one can add new challenges and developments and expect the President to act in exercise of power under Article 72 and thereafter on rejection of clemency they would challenge that in a court of law.

    Counter arguments:

    • The authorities were “hell bent” on executing Memon without giving him the right to challenge the rejection of his mercy petition by the President as right to life of a condemned prisoner last till his last breath.
    • How the President could have rejected Yakub’s fresh mercy plea in such a short time.
    • According to rules, the nearest legal centre must be contacted the day mercy plea gets rejected. That did not happen.

    
    Published with inputs from Swapnil
  • Current affairs from May-15 to Dec-15

    Hi CD,

    Do we have any link to download current affairs from July-15 to Dec-15 in our forum? If no, any plans to develop one like monthly editions we have. This is to cover overall glance of CA for year 2015-16.

    Best Regards,
    Kiran

  • Maldives-India India begins largest ever medical camp in Maldives

    The medical camp, held from Sunday till Tuesday at the state run Indira Gandhi Memorial Hospital (IGMH) in capital Male is run by a urologist (urinary system specialist), nephrologist (kidney specialist) and a specialist of body defects.
    India is the preferred destination for Maldivians who often travel abroad to receive medical treatment.
    In a statement, the high commission said last week that India’s largest naval ship, the aircraft carrier INS Vikramaditya, will arrive in Male on a goodwill visit to Maldives from February 15-18. INS Vikramaditya will be accompanied by two ships, INS Mysore and INS Deepak.
    The visit by an unprecedented fleet of Indian military might to the Maldives follows intensified efforts by both the Maldives and India to improve relations.

    Late last month India agreed to donate a utility aircraft and another helicopter to the Maldives.

    India had donated two utility helicopters to the Maldives in 2010. Both the choppers are operated out of the domestic airport in the southern island of Kahdhoo in Laamu atoll.

    India granted more than US$240,000 (MVR3.8 million) to the Maldives in December to establish facilities to operate and maintain the two helicopters.

    Ties between the Maldives and India are on the mend after reaching its lowest point following the premature termination in 2013 of the agreement with Indian infrastructure giant GMR, which had been managing the country’s main international airport since 2011.

    On November 1, 1965, India established diplomatic relations with the Maldives, becoming the first country to do so following the latter’s independence from Britain in July.

    India, meanwhile, has publicly sided with the Maldives government over the continued imprisonment of the country’s former president Mohamed Nasheed, an issue central to the Maldives’ relationship with its international partners.

  • Monthly compilation of Science and tech

    Sir,please provide compilation for Science and Tech.I am hnable to cope with the current affairs of science,please provide some remedie.

  • [CLOSED] Civilsdaily is looking for part-time translators

    Thanks for the amazing response. We got over 100 applications and we have shortlisted a few. We will be contacting you guys over phone. The application is closed for now. If you still wish to connect with us, feel free to drop a mail 🙂


     

    Hello,

    We are looking for part time translators (English to Hindi) to join the content team for its upcoming Hindi version.

    • Role: Candidates are required to translate English news cards into Hindi
    • Experience: No prior experience is required
    • What do we need? Candidates with a good command over both the languages

    You need to do a simple exercise. Translate these two english news cards into hindi. You need to read the text in english and then recreate the same magic in hindi. Do not use google auto translate. Please use google input tools instead – https://www.google.com/inputtools/try/


    You can fill up this application form or provide us with your personal details (along with text translation) over email at hello@civilsdaily.com

    Google application form - Click here

    Translate the following and send over – 

    NITI Aayog: 2nd regional consultation

    1. Context: 2nd Regional Consultations on Agricultural Development in New Delhi
    2. Held by: NITI Task Force on Agricultural Development under the chairmanship of Vice Chair Arvind Panagariya
    3. Demands: southern states pitched for preparation of a model land leasing act and higher remunerative prices for farmers
    4. Other areas: shared best practices in area of agriculture and water resources; river linking and water conservation and harvesting; emphasis on strengthening of agricultural co-operatives

    Pact to develop Vizag as smart city

    1. Context: Pact between US Trade & Development Agency (USTDA) & Andhra Pradesh Government
    2. Aim: To develop infrastructure, communications and data systems
    3. Smart city: Development is in line with its goal to become a Smart City
    4. Award: this cooperation is particularly timely as Vizag recently won 1st phase of Smart Cities Challenge by GoI
    5. Impact: Development and modernization efforts will be partially supported by the central government

    PS: This is a paid position. We are looking to extend our offerings in hindi and we are looking for 2 awesome translators to work with us on that.

  • [Video] Rajan’s solution for NPAs: Deep surgery not Band aid

    An Indian express report suggest that Public Sector Banks have written off huge sums of money from their balance sheet. It paints alarming picture of banking sector in India. Governor Rajan has suggested that mere band aid won’t do, deep surgery is required to nurse banking system to health.

    What’s the problem with the banking sector in India? Why are banks writing off such huge sums and what kind of surgery is governor Rajan prescribing? In this write up, we shall try to answer all these queries but first some basics of banking.

    https://youtu.be/wjOt13aPvJw


     

    A bank is a financial intermediary that connects savers (depositors, creditors) with borrowers. People deposit their money in the bank for which they get paid some interest rate. Deposit amount on bank balance sheet (account book) is put under liability category for banks have to pay that amount back with interest.

    Banks in turn lend that money to businesses and earn interest on it. Lent money is put under asset category as it generate income for the bank in the form of interest.

    Banks also have something called capital or equity which is brought in by promoters/ investors. The capital is to absorb losses if borrowers default on their commitment and do not pay back their loans.

    In summary, every banks has on its books, capital to absorb losses, assets which generate income and liabilities i.e. deposit amounts which have to be returned back with interest.

    What’s Provisioning?

    Whenever banks lend to any business, it carries with it some risk that money wouldn’t be paid back, borrower would dimply default. This risk is accounted for at the time of disbursal of loan itself in the form of keeping aside some capital in anticipation of future losses. This is called provisioning.

    For instance, if banks feel 1% of loans are likely to default, they will provision 1% against any loans they make, When a loan actually defaults, they don’t have to book huge loss for they have it already covered. Note that higher the likelihood of default, higher the amount of provisioning. Guidelines in this regard are prescribed by RBI.

    What is a non performing asset (NPA)?

    Asset is one which generates income for the bank in the form of interest. Assets are meant to perform function of generating cash flows for banks. When assets cease to perform that function i.e. do not pay back interest and installments, they become non performing and are known as non performing assets.

    Technical definition:  A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.

    Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets.

    1. Substandard assets: Assets which has remained NPA for a period less than or equal to 12 months.

    2. Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.

    3. Loss assets: As per RBI, “Loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.”

    Let’s understand all this with an example: 

    Suppose, SBI lent 100 rs to Mallya on 1st Jan 2015 which he has to return in 10 monthly installments of 12 rs each beginning 1st jan 2016.

    Mallya returns 1st and 2nd installments on 1st jan and 1st feb 2016 but does not return 3rd installment on 1st march. He simply refuses to pay back.

    Till 1st march 2016, this asst would be considered a standard asset as it was generating regular cash flows.

    • After 90 days from due date i.e. 1st june (1st March due date), it becomes an NPA.
    • From 1st june 2016 to 1st June 2017, it remains a substandard asset.
    • After 1st june 2017 it becomes a doubtful asset.

    When bank or auditors feel it’s virtually unrecoverable, it is termed as loss asset and after that it is taken off balance sheet in what is termed as writing off.

    Why wouldn’t banks want to declare bad loans as NPA?

    As NPAs carry higher risk of eventual default, provisioning for NPAs is higher than standard assets. They carry 15% provisioning. What this means is that banks have to set aside 15 rs to cover future losses, the same money they could have lent to someone else and earn interest on it. It basically brings down profitability of banks and erode their capital base.

    But isn’t it like extending problem to the future?

    Well, banks feel if they can continue lending to these assets so that they could repay interest (refinancing), some day economy will return and they will be able to repay all the debt. so they simply restructure the loan and keep these assets as standard assets. Rajan calls it policy of extending and pretending i.e. extending the loan and pretending as if everything’s alright even though there are serious underlying problems. This is what Rajan calls applying band aid.

    Total stressed assets = Gross NPAs + Restructured assets

    It’s true that some sectors are affected by economic downturn and would revive once economic cycle picks up speed but extending every loan for a long time creates problem of moral hazard and promoters simply lose interest in reviving the project for interest cost becomes too high with the rising debt. Banks keep on throwing good money after bad, day of reckoning eventually arrives when banks are forced to book huge losses and tax payers suffer.

    In PSBs, restructured assets are more than double of NPAs and analysts feel restructured assets to be as bad as NPAs.

    The other thing banks can do is recognize NPA as NPA and try to put project back on track. This would then lead to active intervention on the part of all parties concerned. Banks would take some hit on their balance sheet, write off some part, promoters will bring more equity, govt will provide clearances, tarriff authority can increase the tariff etc.

    What are all the things that banks can do?

    1. If management is inefficient, banks can change the management.
    2. Acquire majority stakes under strategic debt restructuring (SDR) and sell the asset to new promoters.
    3. Start liquidation proceedings if turnaround seems unlikely under SARFAESI act.
    4. Sell asset to Asset Reconstruction Companies (ARCs).

    This is what Rajan calls deep surgery but it would require recognizing the problem as NPA first. It would put strain on the profitability in the short run but cleaned up balance sheets would reflect true picture of the state of banks. Government will infuse capital in the banks so that banks are ready to lend money to deserving businesses which will lead to economic recovery as well as expand asset base.

    Economic recovery will help stressed assets to pay back their loans while expanded asset base will increase denominator bringing NPA ratio down thus starting a virtuous cycle.

    Gross NPA ratio = Total NPA/ Total asset base

    We can decrease NPA ratio by increasing the denominator i.e. lending more.

    A few more points:

    Banks lend against capital and Basal committee on banking supervision prescribes norms for capital adequacy.

    Capital Adequacy Ratio (CAR) = Total Capital/ Total risk weighted assets

    This ratio has to be maintained for soundness of banking system. It’s clear from the above that to expand asset base, banks need more capital and for PSBs government has to infuse more capital.

    PS– This article is to be read alongside this discussion to know the causes and ways of resolution of this mess.

    Read this analysis of RSTV

  • Part 5 | Supreme court of Hinduism? | Landmark Judgements that Transformed India

    If you want to know how it wall started, go back here.


     

    Having analysed a very sensitive issue of uniform civil code, we now move to discuss even more fundamental and more nuanced issue of intervention by the state and its courts in our religious affairs.

    Being a deeply religious society, questions pertaining to religious freedom such as  whether or not freedom of propagation of religion implied freedom to convert, constitutionality of religious shrines excluding women from sanctum sanctorum etc have constantly come up in courts. When courts sit in judgement over these issues, question arise on appropriateness or otherwise of secular courts interpreting religious scriptures and deciding what’s essential religious practice and what’s not.

    These are not irrelevant questions. They hit back to the fundamental values on which our Republic was founded upon. They involve conflict among various rights and hence are interesting (and important) to follow up.

    Before we analyse these issues, let us have a look at some appropriate constitutional provisions.

    Article 25

    Freedom of conscience and free profession, practice and propagation of religion

    (1) Subject to public order, morality and health and to the other provisions of this Part, all persons are equally entitled to freedom of conscience and the right freely to profess, practise and propagate religion

    (2)Nothing in this article shall affect the operation of any existing law or prevent the State from making any law

    (a) regulating or restricting any economic, financial, political or other secular activity which may be associated with religious practice;
    (b) providing for social welfare and reform or the throwing open of Hindu religious institutions of a public character to all classes and sections of Hindus

    Article 26

    Freedom to manage religious affairs

    Subject to public order, morality and health every religious denomination or any section thereof shall have the right

    (a) to establish and maintain institutions for religious and charitable purposes;
    (b) to manage its own affairs in matters of religion;
    (c) to own and acquire movable and immovable property; and
    (d) to administer such property in accordance with law

    From above it’s very clear that freedom of religion is not absolute freedom but – 

    1. Subject to public order, morality and health
    2. State can regulate secular activities associated with religion
    3. State can intervene for social welfare
    4. State can throw open Hindu temples of public character
    5. Administration of property has to be in according with law

    Note here that only Hindu (not Muslim or Christian) institutions and public (not private) institutions can be thrown open to public.

    Now question arises as to why so many restrictions on religious freedom in a liberal democracy. Answer was provided by Dr. Ambedkar

    The religious conceptions in this country are so vast that they cover every aspect of life, from birth to death. There is nothing which is not religion and if personal law is to be saved, I am sure about it that in social matters we will come to a standstill.

    In other words, a strict separation between religion and state would have prevented the Constitution from carrying out social revolution.

    Now let’s come back to the courts

    #1. Ram Prasad Seth v/s state of UP (1957)

    UP Government regulations prohibited bigamous marriages to those in public employment and they were challenged on the grounds of Article 25.

    What was the argument?

    Some senseless argument essentially stating there are some rites which could be performed only by sons and if 1st wife could not deliver son, marrying for the 2nd time was essential to live according to Hinduism.

    No gifts for guessing, Allahabad high court quashed the petition but in the process it invented a doctrine called essential religious practice.

    Note here that court could easily quash the petition on social reform ground but nevertheless it chose to invent a doctrine.

    #2. Queshi v/s state of Bihar (1958)

    The doctrine was lapped up by the supreme court. It held that the sacrifice of a cow on the occasion of Id was not an essential religious practice for Muslims. There was no social reform agenda here.

    Since than doctrine has spelt out the outer limits of what could be called the sole domain of religion. It has been applied countless times, most recently by Rajasthan high court in Santhara judgement. Again there was no question of an intended social reform for state to intervene in religious matters.

    In other jurisdictions, the Court only asks whether a particular practice is “sincerely held” by its adherent, a question that requires it to go into the adherent’s past behaviour and conduct, but not into the substantive nature of the practice itself.

    Now let’s come to the question of entry of women into temples – that is under consideration of supreme court

    Argument for goes something like this –

    1. Violates right to equality (art 15)
    2. Violates right to freedom of worship of women devotees (art 25). But the right to worship does not extend to worshiping in any and every place
    3. State responsibility to throw open hindu temples
    4. Excluding women is not an essential religious practice. Well, it’s customary practice going on for hundreds of years

    But it’s available only against public temples.

    In 1993, the Kerala High Court held that the management of the temple could restrict access to women who were in the 10-50 age group. This is what they opined – 

    “restriction imposed on women aged above 10 and below 50 from trekking the holy hills of Sabarimala and offering worship at Sabarimala Shrine is in accordance with the usage prevalent from time immemorial,” and that as such not violative of Articles 15, 25 and 26 of the Constitution of India.

    Clearly there is conflict between art 15  and art 25 and 26. Which one should prevail?

    If you recall article art. 25, it is subject to other provisions of part 3 of constitution. Article 15 is part of part 3. Let’s wait for supreme court judgement.

    Similarly issue is going on with regard to entry of women in Shani Shingnapur temple and Haji Ali mosque. There argument is that women were allowed to go to every part until few years back. Clearly, some clerics don’t want equal rights for women. Matter remains subjudice.

    #3. Ghar vapasi and conversion

    Religious conversion is a very sensitive issue in India and different communities have accused each other of conversion under duress or by allurement. Mass conversions sometimes create law and order problem.

    In this context M.P and Odisha passed anti conversion laws under which –

    1. Intimate the District Magistrate every time a conversion takes place
    2. Prohibit — and impose criminal liability on — conversion or attempt to conversion by the use of force or by inducement or by any other fraudulent means.

    #4. Rev. Stainislaus v. State of Madhya Pradesh

    On the ground that freedom of propagation implied freedom to convert.

    Court interpretations –

    1. “propagate,” mean transmitting or spreading one’s religion by an exposition of its tenets,” but it does not include the right to convert another person to one’s own religion
    2. There is no fundamental right to convert another person to one’s own religion because if a person purposely undertakes the conversion of another person to his religion, as distinguished from his effort to transmit or spread the tenets of his religion, that would impinge on the ‘freedom of conscience’ guaranteed to all the citizens of the country alike.”

    Of course there’s criticism that governments targets minorities through these laws.

    Similarly question of state interference in religious affairs arise when government subsidizes haj pilgrimage or kailash mansarovar Yatra.

    Supreme court has held such subsidy as constitutional though it directed govt to abolish haj subsidy. it again cited from Quran.

    Now, it’s time for some thought questions

    1. Religious traditions often respond to external interventions by growing more conservative and resisting reform. To what extent then is state intervention desirable in religious affairs?
    2. India might be the only republic where the judiciary can pronounce on matters not only relating to law, but also those concerning theology. To what extent is it appropriate for secular courts to interpret religious scripture?
    3. The Constitution does not mention the term “essential religious practice”: it grants protection to the right to practice, profess and propagate one’s religion, not just to engage in the “essential practices” of religion. To what extent is it right to restrict religious practices to essential practices as defined by supreme court?
    4. What’s the best way to reconcile right to freedom of religion with right to non discrimination?
    5. In what respects Indian secularism different from western concept of secularism?
  • Discussion and Debate

    Are Universities Becoming the breeding ground for Anti-national elements or its merely Saffornization of the institutions. Comments