Aircel Lenders Approach Supreme Court Over NCLAT Order

The Committee of Creditors (CoC) of Aircel has approached the Supreme Court (SC) to overrule the order of the National Company Law Appellate Tribunal (NCLAT) that restrict them from selling the spectrum before the overall dues of the company are cleared. Because of the order, Aircel might have to move towards liquidation, which will hurt all of its lenders who are trying to recover their money from the company.

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To recall, the NCLAT order came back in April 2021, and it affected not only Aircel but also RCom, which is in a similar battle of paying dues to the Department of Telecommunications (DoT).

SBI and Other Creditors Approach Supreme Court to Go Against NCLAT Order

A senior State Bank of India (SBI) official told ET Telecom that the bank has moved to SC for going against the NCLAT order. As per the report, other parties involved with Aircel, including UVARCL, which has the National Law Company Tribunal’s (NCLT) permission to take over the assets of the company along with the resolution professional Deloitte, will soon move to the SC separately to complain against the NCLAT order.

For the unaware, NCLAT gave an order which said that companies would need to clear all their dues without which they cannot utilise the spectrum they hold. The only way for companies like Aircel to clear dues is to enter the Corporate Insolvency Resolution Procedure (CIRP) under the Insolvency and Bankruptcy Code (IBC). This would force Aircel to go into the liquidation process.