RCom RP seeks Supreme Court review of spectrum ruling

Anish Nanvaty, the resolution professional managing Reliance Communications' insolvency case, has approached the Supreme Court seeking a recall of its February ruling that barred spectrum assets from being dealt with under the Insolvency and Bankruptcy Code (IBC) proceedings.

The curative petition argues that the February verdict has caused substantial prejudice to the creditors and lenders of the telecom operator by restricting the scope of assets available for resolution. Spectrum, a critical asset for telecom companies, represents a significant portion of RCom's balance sheet, and its exclusion from IBC proceedings has limited options for maximizing value recovery.

The Supreme Court had previously ruled that spectrum licenses fall outside the purview of the IBC, citing concerns about national interest and regulatory oversight. The resolution professional's challenge contends this interpretation creates an untenable situation where key assets cannot be leveraged to satisfy creditor claims, thereby undermining the fundamental objectives of the bankruptcy code.

The curative petition is considered a rare legal remedy and requires demonstrating that the earlier judgment resulted in gross miscarriage of justice. The outcome of this petition could have significant implications not only for RCom's creditors but also for how telecom assets are treated in future insolvency proceedings in India.