December 26, 2023

Section 189 – The Insolvency and Bankruptcy Code, 2016

Constitution of Board. (1) The Board shall consist of the following members who shall be appointed by the Central Government, namely: – (a) a Chairperson; (b) three members from amongst the officers of the Central Government not below the rank of Joint Secretary or equivalent, one each to represent the Ministry of Finance, the Ministry of Corporate Affairs and Ministry of Law, ex -officio; (c) one member to be nominated by the Reserve Bank of India, ex-officio; (d) five other members to be nominated by the Central Government, of whom at least three shall be the whole-time members. (2) The Chairperson and the other members shall be persons of ability, integrity and standing, who have shown capacity in dealing with problems relating to insolvency or bankruptcy and have special knowledge and experience in the field of law, finance, economics, accountancy or administration. (3) The appointment of the Chairperson and the members of the Board other than the appointment of an ex-officio member under this section shall be made after obtaining the recommendation of a selection committee consisting of – (a) Cabinet Secretary- Chairperson; (b) Secretary to the Government of India to be nominated by the Central Government-Member; (c) Chairperson of the Insolvency and Bankruptcy Board of India (in case of selection of members of the Board)- Member; (d) three experts of repute from the field of finance, law, management, insolvency and related subject, to be nominated by the Central Government- Members. (4) The term of office of the Chairperson and members (other than ex-officio members) shall be five years or till they attain the age of sixty-five years, whichever is earlier, and they shall be eligible for re-appointment. (5) The salaries and allowances payable to, and other terms and conditions of service of, the Chairperson and members (other than the ex-officio members) shall be such as may be prescribed. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida  Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA

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Maternity Benefit Act, 1961

Maternity benefits at the workplace are necessary to ensure job security, protect women’s economic rights and support their maternal duties. In India, the Maternity Benefit Act 1961 provides maternity benefits in the form of maternity leave for all women employees.  Maternity leave is a paid leave provided to expecting or pregnant women who can utilise it before and after the delivery of the child. All employers or organisations in India must give maternity leave to pregnant women. It is vital to ensure the overall well-being of the newborn child and mother. The Maternity Benefit Act, 1961 which follows the model of the International Labor Organization, seeks to provide maternity protection to women in order to promote this goal. The Maternity Benefit Act, of 1961, and its most recent amendment from 2017 ensure that women can actively participate in the workforce after giving birth. The increasing transformation of society makes it necessary for women to avoid becoming exposed during the precarious stage of pregnancy. In order to prevent this from having an influence on women, their productivity, or economic growth, the Maternity Benefit Act guarantees that a woman has equal protection to employment during pregnancy. In this article, we look into Maternity Benefits available to a woman in India as per the Maternity Benefit Act, of 1961. Maternity Benefit Act 1961 In India, maternity leave and benefits are regulated under the Maternity Benefit Act 1961 (‘Act’). The Act provides comprehensive maternity benefits, including medical bonuses, paid leave and nursing breaks. The Act supports women during the birth of their child. It protects and safeguards the livelihood and interests of female employees and gives them time to nurture their newborns while taking care of themselves. As per the Act, women working at recognised organisations and factories can take maternity leave for up to 6 months. Women employees can take maternity leave before and after they deliver the child for up to 6 months. During this leave period, the employer must pay the women employee her entire salary.  Scope and Importance of Maternity Benefit Act, 1961 The Act’s primary goal is to eliminate the obstacles that women face when they embark on the parenthood journey. The fundamental goal of the Act is to make it possible for women to balance employment and motherhood without having to make concessions. By the end of the 19th century, Germany had established maternity benefits, setting the standard for the rest of the world. The Maternity Protection Convention was developed by the International Labor Organization in accordance with the notion. In the Indian context, N.M. Joshi proposed the Maternity Benefit Bill (No. 31 of 1924) in the Central Legislature in 1929 after seeing the need for maternity benefit legislation. Prior to this, in the 1920s, the Women’s Association of India waged a campaign to obtain maternity rights in the Jamshedpur steel sector. Following that, the Central Government made an effort by passing the Mines Maternity Benefit Act, of 1941, the Employees’ State Insurance Act, of 1948, and the Plantations Labor Act, of 1951. These acts eventually made room for the Maternity Benefit Act, of 1961, which was passed by the Parliament with the sole purpose of regulating the employment of women for a specific period before and after childbirth. The ambiguities regarding the various maternity leave periods and the minimum term of service required to be eligible for maternity benefits were the driving forces for the codification. By providing a woman with complete and healthy maintenance when she is not working, we are able to further the larger goal of safeguarding the dignity associated with motherhood. Maternity Benefit Act, 1961: Amendment 2017 The 2017 Amendment was enacted in response to the 259th Law Commission Report, which stated: “The Maternity Benefit Act is revised in conformity with the forward-looking requirements in the CCS Rules, increasing maternity benefits from twelve weeks to 180 days.” Maternity benefits should be made mandatory by the state rather than left to the discretion of employers, and they should apply to all women, even those working in the unorganized sector. It is advised that the government develop policies or guidelines outlining minimum requirements for paid maternity leave for women working in the private sector.” Mr. Bandar Dattatreya, Minister for Labor and Employment, tabled the Amendment Bill in the Rajya Sabha. The Bill was proposed after the 44th Session of the Indian Labor Conference (ILC) advocated increasing the length of maternity leave, which was reaffirmed in the 45th and 46th Sessions. This was in addition to the recommendations by the Ministry of Women and Child Development to expand the scope of maternity benefits for women. According to World Health Organization recommendations, there was a need to extend Maternity Leave to preserve the health of both the mother and the child, especially since a kid needed to be nursed for the first 24 months to boost survival rates. Analysis of important Sections incorporated in Maternity Benefit Act, 1961 Maternity Leave Duration [Section 5(3)]According to the Act, every woman is entitled to a 12-week maternity benefit. The Act aims to raise this to 26 weeks. Furthermore, under previous laws, a woman may not use the benefit before 6 weeks from the projected delivery date. The Amendment reduces this to an 8-week timeframe. In the case of a woman who has two or more children, the maternity benefit will remain at 12 weeks, which cannot be used six weeks from the projected delivery date. Adoptive and Commissioning Mothers’ Maternity Leave [Section 5(4)]The Amendment also gives a woman who lawfully adopts a child under the age of three months, as well as a commissioning mother, who is defined as a biological mother who uses her egg to develop an embryo implanted in another woman, 12 weeks of maternity leave. The 12 weeks of maternity leave will begin when the kid is given over to the adoptive or commissioning mother. Work from Home Possibility [Section5 (5)]The Amendment includes an innovative provision that allows women to work from home depending on the nature of the task they are to perform. The task might

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CIBIL Score

The TransUnion CIBIL Limited came into existence in August of 2000. Started as the Credit Information Bureau (India) in the financial capital of India, Mumbai, CIBIL was the country’s first Credit Bureau. CIBIL began with consumer operations in 2004 and stepped into commercial credit operations in 2006. By 2011, CIBIL Score was accessible to individual consumers as well. Currently working in partnership with TransUnion International, a worldwide credit bureau, CIBIL has credit records of over 550 million businesses and individuals across the Most of us are familiar with the concept of borrowing and lending. You would have come across at least one person who often forgets to return the money that he/she borrows. This makes you think twice to lend to that person because of their forgetful nature. Similarly, lending institutions would like to issue loans and credit cards only to those who they deem creditworthy. CIBIL score is one of the significant metrics that is used by the credit institutions in India to measure an individual’s creditworthiness. country. What is CIBIL Score? CIBIL score is one of the most important factors that almost every financial institution check when they receive credit application from individuals. TransUnion CIBIL has affiliations with almost every bank to gauge the creditworthiness of millions of individuals and enterprises. A high CIBIL score denotes not only your excellent financial discipline but also your integrity. Every time you apply for a loan or a credit card, your recent score (last six months) is checked. Generally, any score above 700 is considered excellent, though some banks keep the bar high and some do not mind lowering the standard. CIBIL Score Chart The following is a table depicting the various CIBIL scores and what it may mean. CIBIL Score Meaning 850 – 900 Indicates that one has never defaulted on their payments even once and is an excellent score. 750 – 850 80 % of loans are approved for people who have a score above 750. This gives them the advantage to bargain for a better rate on credit cards and personal loans. 700 – 750 This indicates that the person is good to go for secured loans. However, for an unsecured loan, the bank may impose a higher rate or investigate further. 500 – 700 This indicates that a person has defaulted on their payments a few times. Personal loans would be hard to obtain, and a private financier may levy a massive interest. 300 – 500 This is considered an inferior score and indicates too many discrepancies in loan repayments to ignore. Unless the person works on improving their score, it would be close to impossible to obtain any credit from any bank in the country. Who Computes the CIBIL Score? TransUnion CIBIL is a credit bureau or credit information company, incepted in 2000, the first of its kind in India. The firm computes the CIBIL score of individuals based on the consumer information stored in their repository. They are known for their accuracy and transparency in the calculation of the score. Factors influencing CIBIL Score Repayment History- An individual’s behaviour in the past is an indicator of their future. Every time a person avails credit or a loan, the lender is bound by duty to report the same to the CIBIL. The bank takes note of whether an individual repays their debts on time. If an individual makes an effort to repay in advance, it is considered as a positive sign. This indicates that the person can be trusted to repay the amount he owes. Drastic Increase in Credit- Every earning individual would have a certain credit limit, be it for a loan or a credit card. However, utilising the available credit in its entirety would come off as credit hungry which are seen as red flags by banks. If an individual maintains their certain credit level for all the months but is seen spending significantly more financially, it may result in a dip in the score. Debt to Income Ratio (DTI)- Typically, lenders do not encourage people to take more debts than roughly 40 per cent of their total income. So, DTI is a measure that is used to estimate the ability of a loan applicant to repay their debts based on their salaries. DTI is considered to be a useful metric to inculcate financial discipline in one’s self so that one would be able to repay their future EMIs without any trouble. Multiple Loans- It is also a concern to banking authorities when an individual has many loans such as a home loan, personal loans and vehicle loan and various credit cards registered in their name. It is always a good sign to close one before moving on to avail another one. Uses of CIBIL Score Loan Approval- There exists a common misconception that is simple to avail secured finances such as home loans, personal loans and more if one provides the bank with any valuable security. This is not always the case. Bank’s always looked into a person’s past credit behaviour before approving any loans. This is how banks decide an upper limit and an interest rate. With a poor CIBIL Score, it is difficult to avail loans. Approval of Unsecured Loans- If an individual has no security to offer a bank for a loan, a clean chit from the TransUnion CIBIL is of utmost importance. It is easier for a borrower with a high CIBIL score, of say 700 and above, to get their loans sanctioned without any security. If an individuals score is above 800, they may even get a higher amount than generally given by a bank. Interest Rates- Interest rates vary for different loans at different banks. Some may get a better deal than others even in the same bank. An excellent CIBIL Score gives you the power to bargain with banks for a better deal. Creditworthy customers have the authority to compare offers from different lenders and negotiate as they are assets for any financial institution. Insurance Another financial

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