SC Holds That Spectrum Cannot Be Subjected To Insolvency Proceedings Under IBC

The SC in State Bank of India v. Union of India¹ held that spectrum allocated to telecom service providers (‘TSPs’) and recorded in their books as an ‘asset’ cannot be subjected to proceedings under the IBC. The Court held that spectrum is a finite natural resource held by the Central Government as trustee, and that licensees acquire only a limited, conditional, and revocable privilege to use spectrum, rather than ownership. Consequently, spectrum licensing rights do not form part of the pool of assets amenable for insolvency or liquidation.

Footnote

1 State Bank of India v. Union of India, 2026 SCC OnLine SC 202.