INSOLVENCY PROCEEDINGS AGAINST INDIVIDUALS

The Proceedings against an Individual are governed by Section 249 of Insolvency and Bankruptcy code, 2016 as amended in 2019 and made operational by Central Government from 01.12.2019.And By Provincial towns insolvency Act 1909 and Provincial insolvency act 1920 and are enforced by the courts.Section 249 of IBC, 2016 Provides for Amendment of Act 51 (Recovery of debts due to banks and financial Institutions Act) of 1993. In cases of Individuals Section 249 provides it for minimum default of Rs. 1 thousand is necessary to trigger a suit against an Individual or It can be triggered by filing a suit in Debt Recovery Tribunals (DRTs) which would have circuit sittings in all district headquarters. Clause 1A of Section 8 of Recovery of debts due to banks and Financial institutions, Insolvency resolution and bankruptcy of individuals and partnership firms Act 1993 (as amended by section 249 of IBC 2019 amendment Bill) Provides for the power to the central government to establish Debt recovery appellate tribunals which would exercise powers and authority to entertain appeal under Part III of IBC, 2016 And Also to establish Debt recovery tribunals Under clause 1A of section 3 in the same act named above.

OBJECTS AND REASONS OF IBC 2016 There is no single law in India that deals with insolvency and bankruptcy. Provisions relating to insolvency and bankruptcy for companies can be found in the Sick Industrial Companies (Special Provisions) Act, 1985, the Recovery of Debt Due to Banks and Financial Institutions Act, 1993, the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Companies Act, 2013. These statutes provide for creation of multiple fora such as Board of Industrial and Financial Reconstruction (BIFR), Debt Recovery Tribunal (DRT) and National Company Law Tribunal (NCLT) and their respective Appellate Tribunals. Liquidation of companies is handled by the High Courts. Individual bankruptcy and insolvency is dealt with under the Presidency Towns Insolvency Act, 1909, and the Provincial Insolvency Act, 1920 and is dealt with by the Courts. The existing framework for insolvency and bankruptcy is inadequate, ineffective and results in undue delays in resolution, therefore, the proposed legislation. The Code seeks to provide for designating the NCLT and DRT as the Adjudicating Authorities for corporate persons and firms and individuals, respectively, for resolution of insolvency, liquidation and bankruptcy. The Code separates commercial aspects of insolvency and bankruptcy proceedings from judicial aspects.JURISDICTION OF PROVINCIAL INSOLVENCY ACT 1920The scheme of Section 60(2) and (3) is thus clear – the moment there is a proceeding against the corporate debtor pending under the 2016 Code, Any bankruptcy proceeding against the individual personal guarantor will, if already initiated before the proceeding against the corporate debtor, be transferred to the National Company Law Tribunal or, if initiated after such proceedings had been commenced against the corporate debtor, be filed only in the National Company Law Tribunal. However, the Tribunal is to decide such proceedings only in accordance with the Presidency-Towns Insolvency Act, 1909 or the Provincial Insolvency Act, 1920, as the case may be. It is clear that sub-section (4), which states that The Tribunal shall be vested with all the powers of the Debt Recovery Tribunal, as contemplated under Part III of this Code, for the purposes of sub-section (2), would not take effect, As the Debt Recovery Tribunal has not yet been empowered to hear bankruptcy proceedings against individuals under Section 179 of the Code, as the said Section has not yet been brought into force. Also, we have seen that Section 249, dealing with the consequential amendment of the Recovery of Debts Act to empower Debt Recovery Tribunals to try such proceedings, has also not been brought into force. The liability of a guarantor arises as soon as the principal debtor defaults in paying back the loan. It is to be noted that a contract of guarantee focuses upon the breaking of a promise, whereas the IBC focuses upon the existence of a default. Contrary to the proceedings under the IBC which can only be conducted in NCLT, a breach of guarantee contract can be brought into DRT, that too when ‘public money’ is involved. The rights available to a creditor to proceed against the personal guarantor of a corporate debtor are many-fold, i.e. he can either go to DRT solely for the purpose of debt recovery, or he can file insolvency proceedings against the personal debtor. Para 19 in the case of state bank of India Versus Ramakrishna provide:“We are afraid that such arguments have to be turned down on a careful reading of the Sections relied upon. Section 60 of the Code, in sub-section (1) thereof, refers to insolvency resolution and liquidation for both corporate debtors and personal guarantors, the Adjudicating Authority for which shall be the National Company Law Tribunal, having territorial jurisdiction over the place where the registered office of the corporate person is located. This sub-section is only important in that it locates the Tribunal which has territorial jurisdiction in insolvency resolution processes against corporate debtors. So far as personal guarantors are concerned, we have seen that Part III has not been brought into force, and neither has Section 243, which repeals the Presidency-Towns Insolvency Act, 1909 and the Provincial Insolvency Act, 1920. The net result of this is that so far as individual personal guarantors are concerned, they will continue to be proceeded against under the aforesaid two Insolvency Acts and not under the Code. Indeed, by a Press Release dated 28.08.2017, the Government of India, through the Ministry of Finance, cautioned that Section 243 of the Code, which provides for the repeal of said enactments, has not been notified till date, and further, that the provisions relating to insolvency resolution and bankruptcy for individuals and partnerships as contained in Part III of the Code are yet to be notified. Hence, it was advised that stakeholders who intend to pursue their insolvency cases may approach the appropriate authority/court under the existing enactments, instead of approaching the Debt Recovery Tribunals.”ATTACHMENT OF DEBTOR’S PROPERTY“Under Section 56 of the Provincial Insolvency Act, 1920, the estate of the insolvent vests in the receiver only for the purpose of its administration and to pay off the debts to the creditors. The receiver acquired no personal interest of his own in the property. The receiver appointed by the court takes possession of the properties in the suit on behalf of the court and administers the property on behalf of the ultimate successful party as an officer of the court and he has no personal interest in the property vested there under.Section 56 of the Provincial Insolvency Act (5 of 1920) empowers the Court at the time of the making of the order of adjudication or thereafter to appoint a receiver for the property of the insolvent and to further provide that “such property shall thereupon vest in such receiver”. The word “vest” employed therein is only for the purpose of the receiver to administer the estate of insolvent for payment of the debts after realizing, and the property of the insolvent vests in the receiver not for all purposes but only for the purpose of the Insolvency Act and the receiver has no interest of his own in the property.

INDIAN STATES: AN inEQUALITY TRENCH THAT IS GETTING DEEPER

India a developing nation, dreaming to become a global economic power in future but are we on the right track its still a myth which needs few concerns. Taking states and region there is huge inequality, few regions are well developed while some states are impoverished and poor. States like Jharkhand and Chhattisgarh are mineral rich states but still way below in human development index and way bad in comparison to some of the poorest country of the world. While states like Maharashtra and Gujrat are way better in these norms.

This condition, today ways back in 1980s when country started to grow, but its growth remained in very few states. Since then if we see, more than half of India’s GDP is still generated by 5 states – Maharashtra, Uttar Pradesh, Karnataka, Tamil Nadu, and Gujrat which is 47% of total (2018-19). Despite being similar size, the level of development is not same across all these states, especially in context of Per Capita Income and Per Capita GDP. The difference between the richest and the poorest states has been on a steady rise, indicating a steady rise in overall inequality as well. According to report, the difference between top 5 richest state and poorest states has risen by 145% to 322% in 2018-19 on comparing to start of century. Private investments are typically attracted to those areas which are already developed and equipped with basic infrastructure. But also, the poor states have geographically difficulties, and it is one of the major factors behind the leftover. Bihar and Eastern states are examples of it. While some experts have held ‘over-centralized’ economic policies of the government as responsible for this growth inequality. License raj and corruption are other few norms of it. Policy of subsidized the mineral transportation from the resource rich states to location-based production units acts as kick in the teeth for them. This policy harmed economic growth of mineral rich states like Chhattisgarh, Orissa, Madhya Pradesh etc.

Criminalization, rise of extremist ideas like Naxalism, insurgency in northern states and caste wars etc. have also played significant roles in strengthening regional disparity. Other problems like the failure of land reform policies impoverished already poor people and the lands rights were concentrated in a few hands. Other than pan India disparity, we also witness intra-state disparity in Indian states ‘Intra -state disparity’ refers to some regions within a state which are extremely backward as compared to the other parts of the same state.

The uneven growth impacts the overall development of the country up to a considerable level, had all states grown the average growth rate of 5 states, which is 7.2%, in 2014 India would have a Per Capita GDP income around 1900 US dollars, which would be 1.5 times the actual data. This inequality leads to increase in rate of crimes and insurgencies in the states.

But problem is until it is solved, so to improve there must be a dire need to address the growing regional economic disparity through region-specific comprehensive economic policies, if India wants to achieve ‘equitable development’. It is also important to improve skills of poor state population as industries attract to good skilled labor. Government if want to improve then they must invest in both Social and Physical infrastructure. Social infrastructure includes Health, Education and skill development while Physical infrastructure include Roadways, Railways and Electricity. The union government can also nudge the states under competition federalism to perform better and undertake more measures of reforms.

Types of Life Insurance in India- Risks and Benefits

There are various types of Life Insurance present in market, Each having its own risks and benefits. In life, unplanned expenses are a bitter truth. Even when you think that you are financially secure, a sudden expenditure can shake you up financially and it can also leave you in huge amount of debts.

Since, we cannot plan ahead for contingencies arising from such incidents, insurance policies offer support to minimise financial liability from unforeseen occurrences.

Life Insurance is a policy in which the policyholder can ensure financial freedom for his/her family members after death. Suppose you are the sole earning member in your family, supporting your wife and children. In an event of your death, your family would be left financially devastated. Life insurance policies ensure that such a thing does not happen by providing financial assistance to your family in the event of your passing.

There are 7 types of life insurance policy. These are:

Term Insurance or Term Plan: It is a life insurance plan that provides financial coverage to the beneficiary of the insured person for a definite period of time. In the event of the death of the policyholder during policy term, the beneficiary can claim death benefits from the insurance company.

Risks: In this term plan, no payout is provided to the insured person or beneficiaries if the insured person outlives the policy term.

Benefits: It is a pure death risk cover plan that offers high coverage or sum assured at low premiums.

Whole Life Policy: Whole Life Insurance Plans are insurance plans which provide insurance cover to the policyholder for the rest of his/her life provided the premium is paid on time. Policyholder receives maturity benefit in case he/she survives the policy term. The nominee appointed receives the death benefit in case of death of policyholder. A whole life policy is a type of life insurance that provides guaranteed death benefits during the entire life of the policyholder. The coverage is extended for as long as the insured lives, as long as the premiums are paid up and the policy is not surrendered. These plans are designed to cater to those who do not want a fixed tenure, but rather have insurance cover till whenever they meettheir demise. The policy will also build up a cash value which makes the premiums higher than some other plans.

Risks: If the insurance company changes its policies or policy terms, goes bankrupt, or has some bad years, the return to policyholder will be impacted negatively. Investing a large amount of money in this single policy exposes the policyholder to a larger risk.

Benefits: This policy covers whole life of the assured, or for up to 100 years in some cases. This insurance policy also offers partial withdrawals on completion of certain premium payment term.

Endowment Plan: An endowment policy is essentially a life insurance policy which, apart from covering the life of the insured, helps the policyholder save regularly over a specific period of time so that he/she is able to get a lump sum amount on the policy maturity in case he/she survives the policy term. This maturity amount can be used to meet various financial needs such as funding one’s retirement, children’s education and/or marriage or buying a house. A life insurance endowment policy pays the full sum assured to the beneficiaries if the insured dies during the policy term or to the policy holder on maturity of the policy if he/she survives the term.

Risks: Protection is provided only for the specified period. Premiums are usually much higher than a whole life or term insurance plans. Many insurers do not provide the renewability facility for endowment policies. Returns are usually low.

Benefits: If the assured outlives the term of the policy, the insurer offers the maturity benefit. These plans may offer periodical bonuses (paid either on maturity of the policy or to the beneficiaries under death claim). Endowment plans have surrender values, paidup values, and loan values.

Unit Linked Insurance Plan: It is a market-linked product that aggregates the very best of investment and insurance. It is a plan that links to the capital market and offers flexibility to invest in equity or debt funds as per the risk appetite of the investor. Such a dual benefit of ULIP makes them attractive in terms of investment.

Risks: The returns cannot be guaranteed. Returns are poor because a host of charges are associated with the scheme, such as administrative charges, mortality charges, and so on.

Benefits: If the market does well, profits are good. It provides mortality insurance cover. ULIP investments are flexible, the policyholder can switch from one policy to another. ULIP provides tax exemption benefits to the policyholders under section 80c. Even the sum assured received by the nominee after the demise of the policyholder is tax free.

Money Back Policy: These plans protect the insured and his/her family’s financial interests from death or critical illness of the policyholder. These include both investment and insurance and it starts to pay an amount that is called a “survival benefit” over the lifetime of the policy. The survival benefit is given after a few years from the start of the money back plan and continues till the maturity of the policy. In case of the death of the policy holder, the nominee receives whole of the maturity amount irrespective of number of the “survival benefits” paid.

Risks: Tenure is very long (usually up to 20, 25, and 30 years).

Benefits: Survival benefits paid at regular interval during the policy tenure. On maturity of the plan, the remaining part of the sum assured is paid (known as maturity benefit). In case of death of the assured, insurer pays the entire Sum Assured to the beneficiaries.

Children Policy: It serves two purpose that is insurance cum investment. It financially secures the child’s future and also finance the turning points in his/her life such as higher education and marriage. These plans are best designed to ensure the future of the child in the event of the unfortunate demise of the parents and also build a corpus over a time so as to utilize it at prime moments.

Risks: Considering an additional charge such as premium allocation charges, and others, returns could be low return in the initial stage and lead to additional loss on leaving policy before tenure’s completion.

Benefits: Helps in building the corpus for your child’s education and marriage. Most child plans provide one-time pay-out or annual instalments after the child turns 18. Some child plans even waive off the payment of future premiums on demise of the life insured. The Policy continues till it’s maturity.

Retirement Plan/ Annual Plan: An annuity is a plan that helps the policyholder/ insured to get a regular payment for life after making a lump sum investment. The life insurance company invests the money of the investor and pays back the returns generated from it.

Risks: Annuity plans are one of the costliest types of investment. Most plans charge surrender penalty for early withdrawal.

Benefits: Guaranteed pay-out. Some annuity plans pay out a higher income than available standard annuities if during the occurrence of health issues.

The MBA Tea Seller

22 years old Praful Billore was working as a salesperson for Amway and was earning 25000 rupees a month. He later decided that he wants to do MBA from IIM Ahmedabad. Unfortunately he could not crack the CAT examination, in 2017. He almost gave up the idea of doing a MBA. With his family pressurizing him to take admission in any of the college, Praful had something else in his mind.

He started working at McDonald’s and was earning 300 rupees/day. After 3 months he decided that he wants to start something of his own and decided to open his own tea shop. He took a loan of 8000 rupees from his father and started his own stall. He named his tea stall ‘MBA Chai wala’ ( MBA Tea seller). He used to sell a cup of tea and toast at rupees 30.

With time his business was blooming and he was selling 10000-11000 cups of tea everyday. With time Praful attracted crowd not only towards his business but also to himself. He was doing Ted Talks and interviews on YouTube.

He says that there were times when his own families and friends mocked at what he was doing. But, he always believed and worked hard towards his dream.

Today Praful Billore is one of the best entrepreneurs the world has seen. Today he is earning more than 14800000 rupees per month which is more than a MBA graduate. His simple tea stall now has become a famous food chain with many franchises.

Revisiting our school days: Memories We Miss

As we developed more seasoned, we perceived that our school years were the greatest long periods of our lives. School days are the greatest days since there is no work pressure, no worry about bringing in cash, and we have limitless opportunity to play and appreciate life as we pick.

I detested getting up toward the beginning of the day (which I actually do) and preparing for school, reviewing the entirety of the earlier day’s homework that was forced upon us every one of us. Consistently, I used to ponder internally, “Gracious, wow! When will I grow up and not need to stress over concentrating constantly? “.. However, at the present time, I’d effectively return to my grade school days, sit in my study hall, play flares and spasm tac toe with my buddies, and tattle about who really have crush on whom. I’m certain we have a billion different recollections from our school days; for what reason don’t we restore them on the spot?

Picture of school trip with teachers and students.
  • The adventure of getting another school uniform, covering books in earthy colored paper, and staying your favourite stickers on them.
  • Checking whether the teacher brings the appropriate response sheets after the test.
  • It is one of the undertakings offered to understudies that falls under the classification of The Most Daring Tasks. The ideal title for you is Khatron Ke Khiladi since you can open your lunch box and burn-through your food without the teacher taking note. You are accountable for the whole class. We as a whole anticipated the mid-day break since it gave us a break from contemplating and a chance to socialize. We additionally anticipated the break time eagerly when we realized we had our number one food in our lunch box.
  • Perhaps the main parts of education is social studies. We ordinarily bunked the social studies class avoided a few or the entirety of my homework since I’m a particularly good-for-nothing. Notwithstanding the schoolwork component, I’m certain the vast majority of us wanted for a too arrogant teacher to deal with and would leave us with a substitute teacher. Yaayyyy! Available energy was the most delightful thing that consistently happened to me.
  • We as a whole have accounts of times when we bothered our mates. We stimulated my pals and composing on their notebook to prod them, which by and large formed into a composing war. THOSE WERE THE GOOD OLD DAYS!
  • At the point when companions are trapped amidst the most troublesome events, they can turn into the most interesting. Indeed, even the most ludicrous things sound interesting. Furthermore, when you have a parody amigo adjacent to you, it’s outlandish not to laugh.
  • We used to count the number of children and adhere to the passage that we needed to peruse to relinquish the strain of focusing on each section.
  • The most euphoric second was the point at which the last ringer rang and the time had come to pack things. They’re all prepared to get back with smiles and fun.
  • We are totally favored to have encountered these wonderful minutes, the hints of which will live on to us for eternity.
  • The last exam was constantly joined by euphoric sentiments, as though one were eased and flying through the air. Likewise, the staggering pleasure made it hard to decide the best strategy to celebrate.
  • Last-minute revision, regardless of whether for a short test or a last, most important test, consistently made my heart race.
  • Without these large events, school would be incomplete. We can recall how excited we were at the prospect of wearing traditional dress for the first time in school. We were all so psyched about the farewell we’d be holding the following year before even finishing 9th grade.
  • The school trips and picnics, which were full of fun and learning, are undoubtedly one of the fondest memories we have of our school years. We were bound by a set of rules, dos and don’ts as students. While these limits and constraints are crucial for a our overall growth, it is equally critical that they be allowed to explore and experiment on occasion.
  • The best part about our school life was our First Crush. You become a regular student at school exclusively to see your crush everyday. At the prize conveyance function, you may have gotten an regular student prize. Thank your crush for everything.

Looking back, we understand how uninformed we were in school and how many flaws we possessed. Our time in school, on the other hand, taught us the value of education, and we would not have the excellent friends, knowledge, experiences, or memories that we do now if it weren’t for our school years.

Despite the excitement that fills our days and years in high school, we also mature enough to recognize the value of time. Because we acquired dedication, hard effort, motivation, and self-actualization in high school, it is a fantastic chapter in our memory.

Conclusion

It is claimed that a person always remembers his or her first and last days of school. The first day a youngster remembers is when he or she arrived weeping. And the last day a pupil remembers is the day they leave school, crying once more. In my situation, I recall my first day of school and my last day of school vividly. The benefits of attending school are unquestionably numerous. School days are, without a doubt, the happiest of our lives.

ONLINE LEARNING: Expanding A Whole System Accidently

Two years ago from now, no one had thought about that the entire learning system will go online. No one was prepared for this change completely but now it is the only option left for the people to choose.

Basically, online learning provide students to learn in a complete virtual environment. Rather than going out to school or coaching centers students can access to their classes easily sitting at their home comfortably. Some will find this method a good one and some will not. Actually it all happened sudden and no one was prepared for it. Before we discuss further, let’s discuss about a little bit of history of this kind of education system or method.

Although the concept is not new for everyone. In the form of distance learning it was there. Online learning is about 170 years old concept. Great Britain’s instructors used to send the lessons via e-mails and received assingnments from the students through the same. So, this technique gave birth to distance learning. Students sitting geographically anywhere around the world can access to courses available on distance mode. Yes, not all  courses were available for distance learning but now the condition is different.

Why expanding accidently

COVID-19 pandemic had forced everyone to adapt online learning techniques. Not only universities, schools and other educational institutions are also now bound to provide education through virtual mode. Pandemic had led to develop the whole education system accidently. Although, the same was the future but we are now compelled by the situation to adopt all this early.

Many higher education courses were made available on this platform to promote this kind of method which is followed by many advantages like anyone, anytime and from anywhere to access their lectures ,if lectures are provided in recorded form and if not then the students need to manage their time as instructed by their teacher. For many educational institutes it is a complete new way of providing education that they have had to adopt and some were a little of habitual of it as we were planning to adopt the method in coming future. Along with several advantages, online learning have some disadvantages also. Let us now discuss them briefly.

ADVANTAGES

  • Accessibility : This is the major advantage of e-learning. As stated above, anyone, anytime and from anywhere can easily access to their lectures. Educational institutions are also expanding their network of teaching breaking all geographical boundaries and connecting on virtual platform.
  • Improved students attendance : In the recent scenario it came to notice that the percentage of students attending lectures or classes have increased in online classes. In physical mode classes, a normal attendance was used to be 70-80% in schools which has now increased to 90-95% and it is only because of accessibility.
  • Affordability : Online education is far more affordable than physical classes for both students and institutions as well. It’s because e-learning eliminates the cost of infrastructure, maintenance, travelling, etc.
  • Better time management : Rather than moving from here and there, people can manage their work from where they are. Like, students and teachers both don’t need to travel to meet at institution to deliver or receive a lecture. This travelling tine is saved in e-learning.

DISADVANTAGES

  • Technology issues : No one have control over these issues. Biggest example that you can relate to this situation is network connectivity. Disturbance on either student or teacher side eliminates the smooth conduct of classes.
  • Inability to focus on screens : Many students cannot focus on screens for a long duration. Despite of online classes, other social platforms are also there where students use to spend there time.
  • Require strong self motivation : S student can only learn through online mode when (s)he is strongly self motivated. there are numerous factors to distract students from their studies. In this kind of situation, only self motivation can help one to stay away from those hurdles.
  • Lack of practical knowledge : This factor can be identifies as a biggest drawback of e-learning. Students are not able to do practicals and due to this they may become inconfident. Rather than practical , it focuses more on theory.

So, in order to gain complete benefits of e-leaning  it is important to make everyone use of the gadgets used in e-learning and a proper training of staff  members id also necessary as many people don’t know how to operate.

HOW DOES DOGS HELP HUMANITY?

Dogs have not always held a special place in the hearts of their human companions. Their role among humans was mostly utilitarian until the 18th century, when the term “man’s best friend” came into the lexicon. Their working roles are reduced today, but their importance at home has only increased. From pets to sporting companions to service dogs, canines add a measurable degree of quality to the worlds of the humans they share their lives with.

Companionship

Dogs provide companionship and company. They can be a comfort to people who crave unconditional interaction with another living being. According to Vanderbilt University, dogs can decrease levels of human loneliness and give humans a sense of purpose as they care for their animal companions. This can be especially beneficial for people who live alone, don’t socialize much, are empty-nesters or recently experienced a major change of life, such as the loss of a close human companion to death or divorce.

Security

Dogs provide a sense of security for human companions. Trained watchdogs can provide a high degree of security, while even small house dogs can offer a sense of protection by alerting their owners to approaching strangers or unusual circumstances in the home. Dogs employed by government agencies and police organizations sniff out contraband in places likes airports and large public venues to ensure public security. According to a Texas A&M website, dogs utilized specifically for security purposes require a specialized degree of training to be safe and effective for their handlers.

Teaching Responsibility

Many families use the family dog to help teach responsibility to children. Kids can be taught valuable traits and life skills through positive interaction with the family pet and by taking responsibility for feeding, walking, training and grooming. Children can learn the value of treating all living things with respect and dignity when they have the opportunity care for and love a family dog.

Stress Reduction and Health Benefits

Dogs can help reduce stress levels in human beings and are often used for therapeutic purposes in hospitals, nursing homes and hospices. Playing with a dog, exercising, walking or running can help human beings reduce stress levels and increase their health and well-being. Studies by Harvard University and Kansas State show dog interaction with humans can help combat challenges associated with some form of heart disease and autism.

Service Animals

Dogs raised as service, assistance or therapy animals can open up the world for disabled individuals. Specially trained animal companions help with daily activities and assist people with challenges to make their way in the world. Service animals can make it possible for physically disadvantaged individuals to work, travel and live independently. Search-and-rescue dogs can track human scent in even the most challenging environments.