The case arose from insolvency proceedings involving Aircel Ltd., Dishnet Wireless Ltd. and Aircel Cellular Ltd.
The companies had entered voluntary corporate insolvency resolution process (CIRP) under Section 10 of the IBC.
They had acquired telecom licences in 2006 under Unified Access Service Licence (UASL) agreements. They had also obtained spectrum through government auctions.
During CIRP, the right to use spectrum was treated as part of the corporate debtor’s assets.
The Union of India challenged this position. It argued that spectrum is a sovereign natural resource held by the government in trust for the people. It cannot be treated as a corporate asset capable of restructuring under the IBC.
The dispute reached the National…