The Supreme Court has reserved its verdict on whether telecom spectrum can be treated as an asset under the Insolvency and Bankruptcy Code. The ruling will significantly impact the Aircel–RCom insolvencies and future telecom resolutions.
New Delhi: 26th May: The Bhushan Power and Steel Limited (BPSL) case, the Supreme Court of India has temporarily stayed the liquidation proceedings currently pending before the National Company Law Tribunal (NCLT). This stay comes to allow JSW Steel to file a review petition challenging the Court’s earlier judgment delivered on May 2.
The Supreme Court denied pleas from Vodafone Idea, Bharti Airtel, and Tata Teleservices for a waiver of Adjusted Gross Revenue dues. Vodafone Idea faces severe financial pressure, warning it may cease operations by FY26 without government aid. Airtel sought relief from interest and penalties, emphasizing the ruling’s financial burden on the telecom sector.
The Supreme Court of India will reassess the Competition Commission of India (CCI) plea regarding the rejection of AGI Greenpac’s resolution plan for Hindustan National Glass and Industries Limited (HNGIL). Notices have been issued to stakeholders, with both AGI Greenpac and CCI seeking a fresh hearing due to concerns over competition and implementation issues.
The Supreme Court of India annulled JSW Steel’s ₹19,700 crore resolution plan for Bhushan Power and Steel, declaring it illegal due to violation of Insolvency and Bankruptcy Code norms. The court ordered BPSL’s liquidation, emphasizing that delays and non-compliance undermine the IBC’s objectives, despite previous approvals by NCLT and NCLAT.
The NCLT rejected Akshay Kumar’s insolvency plea against Cue Learn, stating the claim did not constitute operational debt under the IBC. Kumar’s assertion of an unpaid endorsement agreement was deemed invalid due to a contractual breach. The tribunal emphasized that such disputes belong in civil court, not insolvency proceedings, distinguishing between contract claims and actual insolvency issues.
