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NCLT asks DOT not to Cancel Aircel's License

Misc News - Published on Fri, 29 Nov 2019

Image Source: Aircel
Mumbai bench of National Company Law Tribunal has ordered Aircel’s telecom licence not be cancelled, granting relief to the company that filed for bankruptcy in March 2018. It directed Department of Telecommunication “Without the license no resolution applicant will show any interest in reviving the company. Cancellation of license shall adversely affect the business of the company. Only on the basis of license the company is running the telecom business in the country. Therefore, license is an essential requirement for the business of the corporate debtor.”

The tribunal said Insolvency and Bankruptcy Code rules say that the supply of essential goods or services to a corporate debtor shall not be terminated or suspended or interrupted during moratorium period. And, since a telecom licence is used for business purpose a corporate debtor, the provisions of moratorium will apply.

Aircel declared itself insolvent in March 2018 under the IBC and has a debt of over INR 27,000 crore out of which INR 19,889 crore is owed to the operational creditors and INR 7,378 crore is owed to the financial creditors.

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Posted By : TelecomGuru on Fri, 29 Nov 2019
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