DoT may appeal against NCLAT’s Aircel ruling

Mumbai: The telecom department may file an appeal against an appellate order in the Aircel case, objecting to certain portions which stated that spectrum can be subject to insolvency proceedings and that dues of the central government fall under the category of operational creditors.

“Portions of the appellate order go against Department of Telecommunications’ (DoT) claims that spectrum cannot be subject to the Insolvency and Bankruptcy Code (IBC),” said a senior lawyer aware of the development.

In an April order, the National Company Law Appellate Tribunal (NCLAT) had said that the spectrum “cannot be utilised without payment of requisite dues, which cannot be wiped off by triggering CIRP (corporate insolvency resolution procedure) under the I&B Code (Insolvency and Bankruptcy Code)… Defaulting licensees/telcos cannot be permitted to wriggle out of their liabilities”.