Daily Prelims Notes 24 December 2023

December 24, 2023
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

24 December 2023

Table Of Contents

1. Tribunals cannot direct govt. to frame policy: SC judgment

Subject : Polity

Section: Judiciary

Context:

In a recent judgment on an appeal filed by the Union of India under Section 31(1) of the Armed Forces Tribunal Act, 2007, the Supreme Court emphasized that a tribunal cannot direct the framing of government policy.

Key Points from the Supreme Court Ruling:

Scope of Tribunal Powers:
- The Supreme Court held that a tribunal, functioning within the confines of governing legislation, lacks the authority to direct the formulation of government policy.
- The court emphasized that even in Writ jurisdiction, which deals with fundamental rights, the judiciary does not possess the power to dictate policy formation.
Nature of Tribunal Functions:
- The court highlighted that a tribunal operates as a quasi-judicial body, adhering to the parameters set by the governing legislation.
- While acknowledging the tribunal’s jurisdiction over disputes related to promotions and vacancies, it clarified that directing those responsible for policy-making to formulate a policy in a specific manner is beyond the tribunal’s purview.
Case Background:
- The appeal involved a respondent commissioned in the Administrative Branch of the Indian Air Force, challenging the non-formation of a policy for filling the vacancy of Air Vice Marshal (AVM) JAG (Air).
- Despite participating in the Promotion Board of 2015, the respondent contested the lack of a policy for promotions to AVM.
Hierarchy of Tribunals:
- The Supreme Court observed that under Article 323 B of the Constitution, which authorizes the establishment of tribunals for various matters, a hierarchy of tribunals may be created. However, it reiterated that the role of tribunals is adjudicatory, not policy formulation.
Promotion Board Recommendations:
- The court clarified that recommendations from a promotion board are recommendatory and require approval from the competent authority.
- Challenging the basis of promotion after participating in the promotion process and being declared unsuccessful is not a valid ground to impugn the policy/method.
Role of the Judiciary:
- Emphasizing that the making of policy falls outside the judiciary’s domain, the court underscored that tribunals, being quasi-judicial bodies, are similarly restricted in directing the framing of policies.

2. Madhya Pradesh CM’s Assertion on Ujjain and the Prime Meridian: A Brief History of Time Measurement

Subject :Geography

Section: Indian Physical geography

Context:

Madhya Pradesh Chief Minister Mohan Yadav recently claimed in the state Assembly that “Ujjain is the global Prime Meridian,” asserting that India, specifically Ujjain, determined the world’s time approximately 300 years ago, predating the shift of the Prime Meridian to Paris and later to Greenwich.

A Glimpse into the History of Time Measurement:

Humans have always had a sense of time, recording dates using units such as the lunar day (tithi) in ancient India.
The Industrial Revolution in the 18th century marked a significant shift, necessitating more accurate timekeeping with the advent of better clocks and the rise of modern factories.

Nationalization of Time:

In the early stages of the Industrial Age, time remained local, with each factory and town setting its own time.
The need for standardization emerged in the 19th century as technological advancements interconnected the world through railways, steamships, and telegraphs.

Transition to Global Time:

The move from local to global time began in the 1870s, driven by the need to standardize international schedules for transportation.
The International Meridian Conference in 1884 established the Greenwich Mean Time as the global Prime Meridian, reflecting the geopolitical dominance of Britain at the time.

Ujjain’s Historical Connection:

The Madhya Pradesh Chief Minister’s claim about Ujjain as the Prime Meridian 300 years ago is rooted in ancient Indian astronomy. The Sanskrit treatise Surya Siddhanta from the 4th century CE described a Prime Meridian passing through Rohitaka (modern-day Rohtak) and Avanti (modern-day Ujjain). The city’s astronomical significance continued with the observatory built by Sawai Raja Jai Singh of Jaipur in 1719.

3. Reassessing Perspectives: A Compilation of Essays by the Finance Ministry

Subject :Economy

Section: External Sector

Context:

Reassessing Perspectives, a compilation of essays by the Finance Ministry aims to spotlight concerns regarding the methodologies employed by major global credit rating agencies and their adverse impact on India.
It underscores the necessity for credit rating agencies (CRAs) to reform their sovereign rating processes, particularly in accurately representing the default risk of developing economies.

More In News:

Need for Reform: The Chief Economic Adviser of the government emphasizes the imperative for credit rating agencies to reform their sovereign rating processes to better reflect the default risk of developing economies.
India’s Current Rating: Despite substantial improvements in economic metrics since the onset of the pandemic, India holds the lowest investment grade.
Enhancements in macroeconomic indicators may have minimal impact on credit ratings if qualitative parameters are perceived to require improvement, significantly affecting developing sovereigns’ access to capital markets and their ability to borrow at reasonable rates.

About Credit Rating Agencies (CRAs):

Functions of CRAs: These agencies assess the financial strength of companies and government entities, especially their ability to meet principal and interest payments on debts.
They provide investors with crucial information about bond and debt instrument issuers, including countries’ sovereign debts.
CRAs in India: Presently, India has seven registered CRAs, namely CRISIL, CARE, ICRA, SMREA, Brickwork Rating, India Rating and Research Pvt. Ltd.
Global Credit Rating Industry: The global credit rating industry is highly concentrated, dominated by three leading agencies: Moody’s, Standard & Poor’s, and Fitch.
Different Credit Rating Scales: Credit ratings use alphabetical symbols (AAA, AA, A, B, etc.) to assess the creditworthiness of corporate financial instruments.
Higher ratings indicate lower default risk, with AAA being highly favorable. Ratings below BB are considered indicative of poor creditworthiness.

About Sovereign Credit Rating:

Sovereign Credit Rating: It measures a government’s ability to repay its debt, with a low rating indicating high credit risk.
Determinants for Rating: Factors considered include growth rate, inflation, government debt, short-term external debt as a percentage of GDP, and political stability.
Sovereign Credit Rating of India: While S&P and Fitch rate India at BBB, Moody’s rates India at Baa3, indicating the lowest possible investment grade.
This is despite India’s progress from being the 12th largest economy globally in 2008 to the 5th largest in 2023, with the second-highest growth rate among all comparator economies during this period

SEBI Regulations, 1999:

Regulation of Functioning:
- In India, the Securities and Exchange Board of India (SEBI) primarily regulates credit rating agencies under the SEBI Regulations, 1999 of the SEBI Act, 1992.
- Other regulatory agencies, such as the Reserve Bank of India (RBI), Insurance Regulatory and Development Authority, and Pension Fund Regulatory and Development Authority, also regulate certain aspects of credit rating agencies within their respective sectoral jurisdictions.
Disclosure-based Regulatory Regime:
- The SEBI (Credit Rating Agencies) Regulations, 1999 establish a disclosure-based regulatory regime, requiring agencies to disclose their rating criteria, methodology, default recognition policy, and guidelines for dealing with conflicts of interest.

4. A strategic choke point- Bab el Mandeb

Subject : IR

Section: Places in news

Context: Houthi attacks on tankers passing through the narrow Strait

More about the news:

The Houthis, a Shia militia in Yemen backed by Iran, initially declared war on Israel during the Israel-Hamas conflict.
They shifted tactics, targeting ships in the Red Sea, particularly around the Strait of Bab el-Mandeb, disrupting global shipping and leading to increased security concerns and rerouted traffic.

Who are the Houthis:

The Houthis are a large Zaidi Shia clan that began a movement against the dictatorship of Ali Abdullah Saleh in the 1990s.
Today, they are a faction in the bloody civil war that has raged in Yemen since 2014.
The Houthis are backed by Iran and control territory in the west and northwest of Yemen, including the capital Sana’a.
They are fighting against the Sunni-led internationally recognised Yemeni government, backed by Saudi Arabia and the UAE.

Some facts about Bab el Mandeb

It is a strait that connects the Red Sea (northwest) with the Gulf of Aden and the Indian Ocean (southeast).
It is located between Arabia (northeast) and Africa (southwest).
It is an important strategic connection in the marine commerce route connecting the Mediterranean Sea to the Indian Ocean via the Red Sea and the Suez Canal.
It is one of the world’s most important seaborne commodity shipping routes, primarily for crude oil and petroleum.
Yemen borders it on the Arabian Peninsula, and Djibouti and Eritrea border it on the African coast.

Some facts about the Red Sea:

The Red Sea (Erythraean Sea) is a seawater inlet of the Indian Ocean, lying between Africa and Asia.
The connection to the ocean is in the south through the Bab el Mandeb strait and the Gulf of Aden.
To the north lie the Sinai Peninsula, the Gulf of Aqaba, and the Gulf of Suez (leading to the Suez Canal).
The sea is underlain by the Red Sea Rift which is part of the Great Rift Valley.
The six countries bordering the Red Sea are: Saudi Arabia, Yemen , Egypt , Sudan , Eritrea , Djibouti
Islands include the Dahlak Archipelago, the Farasan Islands, and Zubair Archipelago.
Key ports of the Red Seaare Jeddah (Saudi Arabia), Port Sudan (Sudan), Djibouti Port (Djibouti), Aqaba Port (Jordan).
Bab el Mandeb Strait: Located at the southern entrance of the Red Sea, connecting it to the Gulf of Aden and the Indian Ocean.
Strait of Tiran: Situated at the northern end of the Red Sea, separating the Sinai Peninsula from the Saudi Arabian coastline and providing access to the Gulf of Aqaba.

5. Iran threatens Mediterranean closure amid intense Israel strike in North Gaza

Subject :IR

Section: Places in news

Context: Iran threatens Mediterranean closure amid intense Israel strike in North Gaza

More about the news:

The Houthi group in Yemen is aligned with Iran, and it has engaged in attacks on merchant vessels in the Red Sea.
This has led to concerns about the security of shipping routes in the region.
Brigadier General Mohammad Reza Naqdi, a commander in the Iranian Revolutionary Guards, issued a veiled warning, suggesting that the Mediterranean Sea could be shut down if the U.S. and its allies persist in what Iran perceives as “crimes” in Gaza.
The threat seems more rhetoricalthan operational, raising doubts about the practicality of implementing a blockade on the Mediterranean in response to the Gaza situation.

Some facts about Mediterranean Sea

It is an intercontinental sea that is bordered by the continent of Europe in the north, by Asia in the east, and by Africa in the south.
Bordering Countries (21 countries): Albania, Algeria, Bosnia and Herzegovina, Croatia, Cyprus, Egypt, France, Greece, Israel, Italy, Lebanon, Libya, Malta, Monaco, Montenegro, Morocco, Slovenia, Spain, Syria, Tunisia, and Turkey.
To the west it is connected to the Atlantic Ocean through the Strait of Gibraltar, to the east with the Black Sea through the Dardanelles Straits, and to the south with the Red Sea through Suez Canal.
Some of the large Mediterranean Islands include Corsica, Crete, Cyprus, Chios, Euboea, Lesbos, Mallorca, Rhodes, Sicily, and Sardinia. The island of Sicily is the largest island in the Mediterranean Sea.
A large number of rivers drain into the Mediterranean Sea, including the Ebro, Rhone, Po, Nile, Tiber, etc