Thread by @barandbench

《AGR Dues Case》

Justice Arun Mishra led bench of the Supreme Court to hear the adjusted gross revenue (AGR) case & is likely to give an order on allowing telecom companies to make staggered payments over a 15 year time period

#agrdues
#SupremeCourt
@VodafoneIN
@airtelindia

SC had on July 20 reserved its order on permitting telecom companies to make staggered payments over 15 years.

Vodafone Idea has to pay a balance of Rs 50,399 crore, while Bharti Airtel's outstanding amount is Rs 25,976 crore, said Solicitor General Tushar Mehta.

Regarding timeline of payment: Centre sought a 20 year period for payment of dues. Senior Adv Mukul Rohatgi appearing for Vodafone had agreed for 15 year period whereas TATA and other stakehokders agreed for a ten year period.

The case now to be heard at 3 pm.

Hearing begins #AGRdues

Solicitor General Tushar Mehta: We are in process of filing affidavit on DoT's behalf. In case of Aircel, co sought to be taken in IBC has shown spectrum as assets. Have told NCLT that spectrum can't be owned by anyone

SG: All three cases are at different stages of insolvency. We have raised the point that a company which is to go into insolvency and have shown the Spectrum as one of the assets.
However spectrum cannot be owned by anyone like this. Government is trustee.

SG: Amount recoverable from R Com is 31,000 crores. Spectrum is a national property and moratorium does not apply in this case

Justice Mishra: What is the material placed on record for the insolvency.
What were the reasons to initiate insolvency?

SG : That will be given by the companies

SC- Has the proceedings been initiated?

SG- Aircel insolvency proceedings have been initiated. We have told NCLT that spectrum cannot be an asset of a company. Cannot be sold.

For RComm amount to be recovered is 31000 crores- including spectrum usage and licensing charges

SG: Objections to spectrum sale by RCom still under consideration

Senior Advocate Shyam Divan appears for R Com.

SC asks SG why there was a delay in filing appeal in govt's case that spectrum cannot be part of bankruptcy assets.

"What if spectrum is sold in the meanwhile?" J. Shah

Senior Adv Divan, RCom's resolution professional: Ericsson's claim was 1,677 cr

Divan: reads Feb, 2019 verdict of SC in a set of writ and contempt petitions. Operative part stated that contempt agaisnt SBI chairman does not lie

Senior lawyer Shyam Divan referring to provisions of IBC, other laws. He refers to different stages of insolvency, RCom case's background

Divan: Monetization process outside IBC failed due to lack of consensus between lenders

Justice Mishra: What was the reason for you to decide that you want to go into liquidation.?

SC: What is the status of resolution plan?

Divan: it is pending before NCLT

SC to RCom: Our order is binding for all courts and tribunals. How can NCLAT revive insolvency proceedings despite payment to Ericsson?

Justice MR Shah: (To R Com) you said your main source of income is spectrum and don't want to pay anything to DoT?

Divan: the committee of creditors have taken a 100 percent approval of a resolution plan

Justice Arun Mishra: (to R Com) Please file a hard copy about this.

Justice MR Shah to SG Mehta: Now DoT will not get anything? What are you proposing on how to recover AGR?

SG Mehta: spectrum cannot be a subject of matter sale in an IBC proceeding.

Divan submits that the hardcopy would be submitted by tomorrow.

Matter posted for August 14 for Diavn to continue arguments

Senior Adv Ravi Kadam appears for Aircel, for the monitoring committee appointed by the tribunal. AGR for Aircel is, 4,999 cr, Aircel Cellular 1553 cr, and for wireless 2028 crores.

We paid upfront money to buy spectrum which was accepted by tribunal. Thus transferable asset

Justice Mishra: Are you paying something or not?

SC: So you are not paying anything. OK. Have you put all liquidation papers on record?

Kadam: yes.

Justice Mishra to SG Mehta: come prepared and tell us whether spectrum can be sold or not ?

On the contempt plea against the Under Secretary:

SG mehta: We have tendered unconditional apology.

Justice Mishra: apology is fine. But file an affidavit. We will consider it together

Supreme Court has adjourned the Telecom AGR matter to August 14.

No order passed by the Supreme Court on the 20-year timeline (to repay AGR dues) proposed by the Union Government.

#agrcase #TelecomAGR

AGR dues: Can spectrum be sold by telcos undergoing IBC proceedings? Supreme Court asks Solictor General Tushar Mehta

#AGR #Telecom
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