Telecom spectrum for the common good: SC

The Court held that ownership and control of spectrum, including the economic benefits derived from it, cannot be determined solely through the lens of corporate restructuring

- FPJ News Service

The Supreme Court on Friday held that telecom service providers cannot invoke the moratorium under the Insolvency and Bankruptcy Code, 2016 (IBC), to restructure or defer payment of licence and spectrum dues owed to the Department of Telecommunications (DoT) by treating spectrum as a corporate asset.

In Union of India Vs State Bank of India, a Bench of Justices PS Narasimha and Atul Chandurkar ruled that material resources must be managed in a manner that subserves the common good.

The Court held that ownership and control of spectrum, including the economic benefits derived from it, cannot be determined solely through the lens of corporate restructuring, Bar & Bench reports.

A detailed copy of the judgment is awaited.

The case arose from insolvency proceedings involving Aircel Ltd., Dishnet Wireless Ltd. and Aircel Cellular Ltd. The companies had entered the voluntary corporate insolvency resolution process (CIRP) under Section 10 of the IBC.