The spectrum allocated to telecom service providers is not an asset to be subjected to proceedings under the Insolvency and Bankruptcy Code, the Supreme Court ruled on Friday.
The landmark verdict has wider ramifications for the telecommunications sector as telecom companies, such as Aircel Group of Companies, have invoked a moratorium on the basis of a voluntary corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC) for restructuring of their assets.
“We hold that spectrum allocated to telecom service providers (TSPs) and shown in their books of account as an ‘asset’ cannot be subjected to proceedings under the Insolvency and Bankruptcy Code, 2016,” a Bench of Justice PS Narasimha and Justice AS Chandurkar…