The Supreme Court has rejected a plea by Bharti Airtel seeking clarification in its order asking the company to pay Rs 1.12 billion to Aircel. As a consequence of the apex court’s decision, Airtel chose to call off its application.
In its application, Airtel had contended that the resolution plan to revive Aircel did not receive approval from the Reserve Bank of India (RBI). It stated that UV Assets Reconstruction Company, the successful resolution applicant, has failed to secure the mandatory approval of the RBI required for acquiring shares of the Aircel entities in order to implement the resolution plan, resulting in the implementation of the resolution plan becoming practically impossible.
According to Airtel, since the resolution plan is unworkable, it sought the Supreme Court’s approval to deposit Rs 1.12 billion in an escrow account with the registry. Airtel requested this as it contended that its interests must be protected in case Aircel goes into liquidation. However, the court refused to entertain the plea.
On January 3, 2024, the Supreme Court directed Airtel to pay Rs 1.12 billion to Aircel towards its spectrum trade agreements (STA) and other dues.
