Reliance Communications’ curative petition against the Supreme Court’s February ruling on spectrum has reopened a question that sits at the intersection of telecom infrastructure, insolvency law and public finance: when a private company becomes insolvent, can a regulated public resource still be treated as an asset available for resolution and recovery by lenders?
The petition, filed by resolution professional Anish Nanvaty, seeks recall of the Supreme Court verdict that excluded spectrum allocated to telecom companies from proceedings under the Insolvency and Bankruptcy Code. Business Standard reported that the petition argues the judgment is causing “irreversible harm” to lenders and has removed the asset against which banks…