The SC has ruled that telecom spectrum cannot be treated as a corporate asset under India’s IBC | Image:
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The Supreme Court on Friday delivered a judgment asserting that telecom spectrum is a public resource and cannot be treated like other corporate assets in insolvency proceedings under the Insolvency and Bankruptcy Code. The ruling prohibits telecom companies undergoing bankruptcy from using spectrum rights to restructure debt or repay creditors.
A bench of Justices P.S. Narasimha and Atul Chandurkar upheld the view that spectrum is a sovereign resource that belongs to the people of India, with the government acting in a trustee capacity. As such, its control, use, and all associated benefits must serve the…