In Brief
Loop Telecom was granted 2G licenses and paid entry fees of Rs 1,454.94 crores. The Supreme Court later quashed these licenses as the allocation process was arbitrary and stage-managed to benefit selected entities. Loop Telecom sought a refund of its entry fees, claiming frustration of contract. The Court held Loop Telecom was complicit in the illegal allocation scheme and therefore in pari delicto (equally at fault) with the government. Since both parties participated in the illegality, Loop Telecom could not claim restitution under contract law. The Court dismissed the appeals, finding TDSAT lacked jurisdiction and that Loop Telecom's claim for refund was barred by principles of public policy and illegality.
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