CURRENT-AFFAIRS

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• Why in News?
  • The Union Home Ministry’s claim before the J&K High Court that the Lieutenant-Governor (L-G) can nominate five Assembly members without the elected government’s “aid and advice” raises serious questions of democratic accountability.
• Key Provisions:-
  • The 2023 amendments to the J&K Reorganisation Act permit the L-G to appoint two Kashmiri migrants (including one woman), one from the Pakistan-occupied J&K community, and two women if underrepresented—potentially altering the Assembly’s majority. The High Court notes such powers could convert a minority government into a majority, as seen in Puducherry in 2021. The Ministry cites legal provisions and precedents, but bypasses the core constitutional issue: can unelected appointees influence government stability? Supreme Court rulings in the Delhi services cases stress that L-Gs should follow elected governments’ advice, with exceptions being rare. In J&K, where statehood remains unfulfilled and public trust fragile, decisions affecting legislative balance must stem from a democratic mandate, not unilateral administrative discretion.

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• Why in News?
  • After grappling with inflation above the RBI’s 2–6% comfort band two years ago, India now sees retail inflation at a far more benign 1.55% in July — the lowest since June 2017.
• Key Provisions:-
  • This sharp fall stems largely from a contraction in food prices, not just statistical effects, as last year’s base was already low. Economists expect this trend to persist, aided by healthy sowing, good monsoon rains, and a favourable base effect. Core inflation, at 4.1%, matches the RBI’s target. Risks remain if India shifts from discounted Russian oil to costlier Gulf supplies, though this appears unlikely.
  • The RBI foresees inflation picking up only in 2026, but slowing growth clouds the outlook. Industrial output, GST collections, car sales, and UPI transactions have weakened, and structural demand constraints persist. With GDP growth still vulnerable to global trade shifts and tariffs, a temporary dip in inflation alone cannot guarantee sustained economic momentum.

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• Why in News?
  • The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 aims to streamline insolvency resolution, maximise recovery for stakeholders, and align India’s framework with global best practices.
• Key Provisions:-
  • It mandates the National Company Law Tribunal (NCLT) to admit cases within 14 days and approve resolution plans within 30 days, while introducing out-of-court, creditor-initiated resolutions to cut costs and reduce judicial load.
  • To protect value, the Bill allows NCLT to restore the Corporate Insolvency Resolution Process (CIRP) once in exceptional cases at the request of the Committee of Creditors (CoC). It also introduces a voluntary group insolvency framework for joint resolution of interconnected domestic companies, and lays the foundation for a cross-border insolvency regime to access overseas assets. The “clean-slate principle” is reinforced, extinguishing claims post-approval of a resolution plan unless specified otherwise.
  • The amendments build on the Insolvency and Bankruptcy Code, 2016, which replaced the “debtor in possession” model with a “creditor in control” regime.

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• Why in News?
  • The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 aims to streamline insolvency resolution, maximise recovery for stakeholders, and align India’s framework with global best practices.
• Key Provisions:-
  • It mandates the National Company Law Tribunal (NCLT) to admit cases within 14 days and approve resolution plans within 30 days, while introducing out-of-court, creditor-initiated resolutions to cut costs and reduce judicial load.
  • To protect value, the Bill allows NCLT to restore the Corporate Insolvency Resolution Process (CIRP) once in exceptional cases at the request of the Committee of Creditors (CoC). It also introduces a voluntary group insolvency framework for joint resolution of interconnected domestic companies, and lays the foundation for a cross-border insolvency regime to access overseas assets. The “clean-slate principle” is reinforced, extinguishing claims post-approval of a resolution plan unless specified otherwise.
  • The amendments build on the Insolvency and Bankruptcy Code, 2016, which replaced the “debtor in possession” model with a “creditor in control” regime.

​​​​​​

• Why in News?
  • The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 aims to streamline insolvency resolution, maximise recovery for stakeholders, and align India’s framework with global best practices.
• Key Provisions:-
  • It mandates the National Company Law Tribunal (NCLT) to admit cases within 14 days and approve resolution plans within 30 days, while introducing out-of-court, creditor-initiated resolutions to cut costs and reduce judicial load.
  • To protect value, the Bill allows NCLT to restore the Corporate Insolvency Resolution Process (CIRP) once in exceptional cases at the request of the Committee of Creditors (CoC). It also introduces a voluntary group insolvency framework for joint resolution of interconnected domestic companies, and lays the foundation for a cross-border insolvency regime to access overseas assets. The “clean-slate principle” is reinforced, extinguishing claims post-approval of a resolution plan unless specified otherwise.
  • The amendments build on the Insolvency and Bankruptcy Code, 2016, which replaced the “debtor in possession” model with a “creditor in control” regime.