The Supreme Court has observed that the Insolvency and Bankruptcy Code cannot be the guiding principle for restructuring the ownership and control of telecom spectrum.
The Court had reserved judgment on a series of appeals contesting a National Company Law Appellate Tribunal (NCLAT) ruling regarding the insolvency of Aircel and Reliance Communications. The central issue was that the spectrum, classified as an intangible asset of a corporate debtor, can be included in insolvency and liquidation proceedings.
The Bench of Justice PS Narasimha and Justice Atul Chandurkar observed, “The issue is not as complicated as it seems. We could demystify the legal challenge by first understanding spectrum as a material resource, precisely as what our…