NEW DELHI: Supreme Court on Friday held that telecom companies cannot claim ownership over spectrum allocated to them by govt and the natural resource cannot be subject to insolvency and liquidation process of a bankrupt telecom company.A bench of Justices P S Narasimha and A S Chandurkar rejected the plea of banks, which submitted that licenced spectrum could also be put on block to recover debt taken by a bankrupt telecom company. It quashed an NCLAT order in insolvency proceedings of Aircel group, which had said that spectrum usage rights could be treated as assets of a corporate debtor and could be transferred during insolvency or liquidation. The court’s order is a setback to banks, which have exposure to telecom firms.
Insolvency Guardian
Insolvency Services & Bankruptcy Advice
