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PAMIDIGHANTAM SRI NARASIMHA, ATUL S. CHANDURKAR
State Bank Of India – Appellant
Versus
Union Of India – Respondent
This judgment addresses the core issue of whether spectrum allocated to telecom service providers (TSPs) constitutes an "asset" of the corporate debtor under the Insolvency and Bankruptcy Code, 2016 (IBC), amenable to insolvency resolution proceedings, moratorium, or transfer, or whether it remains a finite natural resource owned by the government under the public trust doctrine, with TSPs holding only conditional, revocable usage rights [judgement_subject][1] (!) [13][30][33][34][36][45][54][58][60][61][62][63][69].
It examines the interplay between telecom laws (governing spectrum as a sovereign privilege) and IBC, rejecting the treatment of spectrum usage rights as proprietary assets for restructuring while upholding government dues and regulatory control (!) (!) [18][24][26][28][29][37][40][43][64][66][67][68][69].
| Table of Content |
|---|
| 1. determination of ownership and control over spectrum. (Para 1) |
| 2. factual background on telecom licensing and related debts. (Para 2 , 3 , 4 , 5 , 6) |
| 3. arguments regarding the treatment of spectrum as an asset. (Para 11 , 12) |
| 4. insolvency code cannot apply to spectrum. (Para 40 , 45 , 46 , 48) |
| 5. conclusion on spectrum's status under insolvency law. (Para 69) |
JUDGMENT :
Contents
| I. | Introduction |
| II. | Prelude to the NCLAT’s judgment: Facts leading to the filing of these appeals |
| III. | Submissions of the Learned Counsels |
| A. Submission on behalf of TSPs and financial institutions | |
| B. Submissions on behalf of DoT/Union of India | |
| IV. | Nature of Spectrum and the Constitutional Framework Governing the Natural Resources |
| A. Spectrum as a Finite Natural Resource | |
| B. Concept of ownership over natural resources and its Constitutional Underpinnings | |
| V. | Statute, Policy and Contractual Framework Governing Spectrum Allocation, Licensing and Use |
| A. Statutory Framework of Spectrum | |
| B. ...The Successive Telecom Policies including unbundling of licensing spectrum allocation | |
| C. Guideli | |
Spectrum is considered a finite natural resource, thus its ownership remains with the government and cannot be treated as an asset under the Insolvency and Bankruptcy Code.
Provisional attachment orders – Orders passed under Benami Act cannot be questioned before authorities under Insolvency and Bankruptcy Code, 2016 – Where subject matter of dispute pertains to exercis....
NCLT has jurisdiction under IBC Section 60(5)(c) to defreeze demat accounts holding corporate debtor's undisputed shares, frozen for crystallized listing fee dues, as issue relates to insolvency proc....
The lease agreement, license agreement, and the allotment letter should be read as coterminous contracts. The termination of the license agreement and lease deed was found to be in accordance with th....
The court established that the nature of challenge under Article 226 and the absence of jurisdiction could trigger the invocation of the High Court's jurisdiction. The court also clarified that the f....
The NCLT lacks jurisdiction to adjudicate contractual disputes such as rights under Joint Venture Agreements when they do not arise from the insolvency proceedings of the corporate debtor.
The Clean Slate Theory does not apply to tax dues arising during the Corporate Insolvency Resolution Process; compliance with tax obligations remains necessary.
IBC overrides Multi-State Co-operative Societies Act; NCLT has jurisdiction over multi-state co-operative banks participating in CIRP for enforcing asset protections like moratorium on dividend adjus....
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