Spectrum can be transferred but not without settling dues, says NCLAT

Since the questions posed by the apex court has been dealt with by the tribunal now, the appeals by the DoT will be heard by the NCLAT on April 26

The National Company Law Appellate Tribunal (NCLAT) on Tuesday said that spectrum, an intangible asset, can be subjected to insolvency proceedings. It can be transferred by the corporate debtor under such proceedings but not without clearing the dues of the government.

In its findings, a three-judge Bench of the NCLAT, which was tasked with finding answers to the questions posed by the Supreme Court in the Aircel issue, said, defaulting telecom companies cannot be permitted to wriggle out of their liabilities. 

It added, they cannot resort to triggering of the corporate insolvency resolution process (CIRP) by seeking it under Section 10 of