Telecom service providers do not own spectrum, cannot list the public resource as an ‘asset’ for insolvency or liquidation: SC

The Supreme Court on Friday laid down that telecom service providers (TSPs) do not own spectrum, a precious and finite public resource meant to be used for the common good of all, and cannot include it among their pool of ‘assets’ for insolvency or liquidation.A Bench of Justices PS Narasimha and Atul Chandurkar held that the Insolvency and Bankruptcy Code (IBC) excludes any assets over which a corporate debtor has no ownership rights.“Mere recognition of spectrum licensing rights as an intangible asset by ...