In Brief
This ruling addresses critical jurisdictional questions about whether telecom spectrum can be subjected to insolvency proceedings under the IBC, and establishes the liability framework for AGR dues in spectrum sharing and trading scenarios. The Court held that fundamental questions—including whether spectrum qualifies as property under the Code and whether AGR dues are operational debts—must first be examined by the NCLT. On substantive issues: shared spectrum operators are not liable for the original licensee's past dues; trading liability is governed by DoT guidelines with buyers generally not liable for sellers' past dues unless entire spectrum was traded. The Court modified the Government's proposed 20-year payment plan to 10 equal yearly instalments beginning April 2021, with 10% upfront payment, protecting net present value at 8% discount rate. Non-compliance triggers contractual interest, penalties, and contempt proceedings. The judgment emphasizes spectrum's status as a natural resource held in public trust, limiting its alienation through insolvency."
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