# Union of India Vs. Vijaykumar V. Iyer CA (AT) (Ins) No.733 of 2020 and other appeals

> NCLAT judgment dated 2021-04-13. Citation: TCN-2021-NCLAT-00287. The case involves a batch of appeals before the National Company Law Appellate Tribunal…

- **Court:** NCLAT
- **Order date:** 13 Apr 2021
- **Citation:** TCN-2021-NCLAT-00287
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/union-of-india-vs-vijaykumar-v-iyer-ca-68a03cfe

## Summary

### Background

The case involves a batch of appeals before the National Company Law Appellate Tribunal (NCLAT) concerning the approval of resolution plans for Aircel Ltd., Dishnet Wireless Ltd., and Aircel Cellular Ltd. The core issue revolves around whether spectrum, a natural resource, can be considered an asset of the corporate debtor under the Insolvency and Bankruptcy Code (IBC), and the implications of the government's right over spectrum as a trustee. The appeals arise in the context of Adjusted Gross Revenue (AGR) dues owed by telecom service providers (TSPs) to the Department of Telecommunications (DOT). The Hon'ble Apex Court directed the NCLAT to consider various questions related to the ownership, transferability, and treatment of spectrum under the IBC, particularly

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## Facts

The case involves multiple appeals related to the insolvency resolution of telecom companies (TelCos) like Aircel, Dishnet Wireless, and GTL Infrastructure. These companies owe significant Adjusted Gross Revenue (AGR) dues to the Department of Telecommunications (DOT). The core issue is whether spectrum, a natural resource licensed to these TelCos, can be considered an asset under the Insolvency and Bankruptcy Code (IBC) and be part of the resolution plan. The Union of India argues that spectrum is a public asset held in trust by the government and cannot be treated as a typical asset of the TelCos, especially when they have defaulted on payments. They emphasize the public trust doctrine and the government's sovereign right over spectrum. The Resolution Professionals,

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## Issues and analysis

### Issue 1: Whether spectrum is a natural resource and …

**Ratio:** The Hon'ble Apex Court in "Center for Public Interest Litigation & Ors vs.

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**Reasoning:** The Hon'ble Apex Court has repeatedly insisted upon the Doctrine of Public Trust and

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**Interpretation:** Spectrum is a natural resource held by the government as a trustee for the

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**Application:** The Respondents have not raised any controversy in regard to spectrum being a

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## Parties

- **Judges:** Bansi Lal…; Anant Bijay…; +1 more
- **Appellants:** Union of…
- **Respondents:** Aircel…; Vijaykumar…
- **Other parties:** 7th Edition…; Spectrum as…; +6 more

## Timeline

- **2015-01-01 — Civil Appeal Nos.…**: Union of India vs. Association of Unified…
- **2020-09-01 — Judgment…**: Judgment rendered on 1st September, 2020 as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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