# In the matter of Union of India Vs. Association of Unified Telecom Service Providers of India Etc.

> SC judgment dated 2020-09-01. Citation: TCN-2020-SC-00041. This case involves a complex dispute regarding the Adjusted Gross Revenue (AGR) dues of telecom…

- **Court:** SC
- **Order date:** 1 Sept 2020
- **Citation:** TCN-2020-SC-00041
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/union-of-india-vs-association-of-unified-telecom-service-providers-of-india-etc-f4007ac5

## Summary

### Background

This case involves a complex dispute regarding the Adjusted Gross Revenue (AGR) dues of telecom service providers (TSPs) to the Union of India. The dispute arose from the definition of AGR and the subsequent dues to be paid by the TSPs. The Supreme Court had previously ruled on the definition of AGR in 2019. Several TSPs are undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). The Union of India filed an application seeking modification of the order dated 24.10.2019, and the court is considering a formula for recovery of past dues. The court is also examining the validity of insolvency proceedings initiated by some TSPs and whether spectrum can be subjected to proceedings under the IBC.

## Facts

The Union of India sought to recover Adjusted Gross Revenue (AGR) dues from telecom service providers (TSPs). The definition of AGR was previously decided by the Supreme Court in a 2019 judgment. Several TSPs are undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). The Union of India filed an application seeking modification of the order dated 24.10.2019, proposing a formula for recovering past dues. The court is examining whether spectrum licenses can be considered assets under the IBC and whether AGR dues qualify as operational debts. The Department of Telecommunications (DoT) issued spectrum sharing and trading guidelines. The Union of India, telecom service providers, and committees of creditors presented arguments. The National

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## Issues and analysis

### Issue 1: Whether spectrum can be subjected …

**Ratio:** The Central Government has the exclusive privilege of establishing, maintaining, and

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**Reasoning:** The licensee does not own the spectrum and has merely been granted a right to use, which

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**Interpretation:** The spectrum held under a contractual arrangement is not an asset of the

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**Application:** The court considered arguments from the Union of India, telecom service

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## Parties

- **Judges:** Arun Mi…; S. ABDUL…; +1 more
- **Appellants:** Union of…
- **Respondents:** ASSOCIATION OF…

## Timeline

- **2015-01-01 — Civil Ap…**: Civil Appeal Nos.6328-63…
- **2019-10-24 — Judgment an…**: Court decided regarding the definition of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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