Mumbai: State Bank of India (SBI), on behalf of lenders to the bankrupt Aircel Group, has approached the Supreme Court of India seeking a review of its February 13 judgment that barred telecom spectrum from being treated as an asset under insolvency proceedings, warning of far-reaching implications for the banking system and infrastructure financing.
In a review petition filed on March 30, SBI argued that the ruling contains "errors apparent on the face of the record" and fails to address key legal questions framed earlier by the court. It said the judgment overlooked issues central to lenders, including the treatment of spectrum usage rights and classification of government dues under the Insolvency and Bankruptcy Code (IBC).
"The impugned judgment suffers from patent errors on the face of the record which go to the root of the issue," the petition said.
The apex court ruling has hit the IBA resolution cases of Aircel and Reliance Communications (Rcom). Aircel was admitted to the corporate insolvency resolution process (CIRP) in 2018, while Rcom was admitted in 2019. The resolution process of both the companies has been in limbo amid legal and technical hurdles. Earlier last month, Rcom's resolution professional too filed a review petition against the February 13 order of the SC.
The Supreme Court order marked a win for the government and defeat for lenders to companies like Rcom and Aircel. In the order, the top court made it clear that IBC cannot be the guiding principle for restructuring ownership and control of spectrum, which is a material resource, and its control with all its attributes, including benefits, must be secured for citizens.
In a review petition filed on March 30, SBI argued that the ruling contains "errors apparent on the face of the record" and fails to address key legal questions framed earlier by the court. It said the judgment overlooked issues central to lenders, including the treatment of spectrum usage rights and classification of government dues under the Insolvency and Bankruptcy Code (IBC).
"The impugned judgment suffers from patent errors on the face of the record which go to the root of the issue," the petition said.
The apex court ruling has hit the IBA resolution cases of Aircel and Reliance Communications (Rcom). Aircel was admitted to the corporate insolvency resolution process (CIRP) in 2018, while Rcom was admitted in 2019. The resolution process of both the companies has been in limbo amid legal and technical hurdles. Earlier last month, Rcom's resolution professional too filed a review petition against the February 13 order of the SC.
The Supreme Court order marked a win for the government and defeat for lenders to companies like Rcom and Aircel. In the order, the top court made it clear that IBC cannot be the guiding principle for restructuring ownership and control of spectrum, which is a material resource, and its control with all its attributes, including benefits, must be secured for citizens.
