How To Recover Dues From Firms Facing Insolvency? Top Court To Telecom Department

Court docket requested concerning the plan to get well dues from telecoms going through insolvency.

New Delhi:

The Supreme Court docket on Monday requested Division of Telecom (DoT) to apprise it as the way it plans to get well Adjusted Gross Income (AGR) associated dues from telecom corporations going through insolvency proceedings and whether or not spectrum given to those corporations might be offered.

The DoT advised the highest court docket that their stand is that the spectrum can’t be offered by the telecom corporations going through insolvency proceedings as it’s not their property.

A bench of Justices Arun Mishra, S Abdul Nazeer and M R Shah requested Solicitor Common Tushar Mehta, showing for the DoT, to apprise it as to the way it plans to get well the AGR associated dues from these corporations.

“Please inform us what is going to occur to the DoT’s AGR associated dues, if the businesses like RCOM, Aircel and Videocon go into insolvency then what would occur to the stated quantity. Inform us how you’ll get well Rs 31,000 from RCOM and Rs 12,000 crore from Aircel. You need to do one thing. That is public cash,” the bench advised Mr Mehta.

It stated the court docket wants to determine the bonafides of the telecom corporations who’ve gone underneath proceedings underneath Insolvency and Chapter Code (IBC).

Mr Mehta stated that he will probably be submitting an affidavit on this regard. He stated telecom corporations are at various phases of insolvency proceedings.

The legislation officer stated that their enchantment in opposition to the Nationwide Firm Legislation Appellate Tribunal (NCLAT) order has been pending earlier than the highest court docket on the query whether or not the spectrum given to the businesses might be offered or not.

The bench requested Mr Mehta as to why did NCLAT dismiss their petition in opposition to sale of spectrum to which he replied that as a result of delay in submitting of enchantment in opposition to the order.

“Why was the delay in submitting the enchantment? What would occur if the spectrum is offered out by then?” the bench stated.

It stated that the court docket desires to enter reason behind initiation of insolvency for these telecom corporations and desires to learn about their liabilities and what was the urgency for pushing for insolvency.

The bench stated it wished to know as how insolvency proceedings had been initiated in opposition to Reliance Communication (RCOM) even after the operational creditor the Swedish telecom tools maker Ericsson was paid its dues.

“How had been the proceedings underneath IBC, revived when the Supreme Court docket had in its 2019 order directed for settlement of dues of Ericsson?” the bench stated.

Senior advocate Shyam Divan, showing for Decision Skilled for RCOM, narrated the sequence of occasions to the bench.

The bench stated, “our order is binding for all courts and tribunals. How can NCLAT revive insolvency proceedings regardless of cost to Ericsson?”

The bench requested the businesses to file the affidavit giving every element by the subsequent date of listening to.

Senior advocate Ravi Kadam, showing for Aircel, stated as per the corporate the spectrum might be offered because it was talked about within the phrases and situation that it’s transferable and the corporate has made an upfront cost for it.

“For the reason that spectrum is transferable due to this fact, it may be offered”, he stated.

He stated this stand of the corporate has been upheld by the Nationwide Firm Legislation Tribunal (NCLT).

Mr Kadam stated that Aircel was not going into liquidation as a decision plan has been permitted by the NCLT.

The bench then requested the SG to come back ready on the subsequent date of listening to as how the spectrum might be offered.

On July 20, the highest court docket made it clear it won’t hear “even for a second” the arguments on reassessment or re-calculation of the AGR associated dues of telecom corporations which run into about Rs 1.6 lakh crore.

LEAVE A REPLY

Please enter your comment!
Please enter your name here