Spectrum allocated to telcos not asset, can’t be subjected to insolvency process: Supreme Court

New Delhi: In a landmark decision, the Supreme Court on Friday held that the spectrum allocated to telecom service providers is not an asset to be subjected to proceedings under the Insolvency and Bankruptcy Code.

The decision will have ramifications in the telecommunication sector where telecom firms such as Aircel Group of Companies have invoked moratorium on the basis of voluntary corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC) for restructuring of their assets.