New Delhi, Aug 20 (TIWN) The Supreme Court on Thursday said that it is extremely worried that almost the entire AGR dues will be wiped out in the IBC process, and noted that spectrum trading is different from sale of spectrum in IBC.

Here are the main highlights from the Supreme Court hearing on the AGR payments dues case from telecom companies today:

• The Supreme Court has adjourned the hearing in the AGR dues case to Friday at 2 pm.
• NK Kaul appearing for Videocon Telecom's resolution professional: DoT put AGR dues at Rs 1512 crore. Business is nil as of now, resolution process on. Spectrum transferred to Bharti Airtel in 2016. Justice Mishra asks SG to reply if Bharti Airtel has undertaken to pay spectrum liability.
• Ranjit Kumar: Banks will be at loss and it would be against the resolution process provided for under IBC. My lords must consider this at this stage. IBC is a whole statute. He concludes for lenders of Aircel.
• Ranjit Kumar says that the banks and government need to coexist. “Government uses proceeds for the public, banks use it for economic purposes — such as advancement of loans. Let's not forget, the economy is also in strain.”
• Since Monday, Vodafone Idea's share price slipped 2.76 percent while Bharti Airtel rose 0.75 percent, to current levels. Meanwhile, Reliance Communications' shares surged 12.24 percent. Read more
• Ranjit Kumar for COC for Aircel addressing the court on rights of telcos to transfer the right to use the spectrum, as recognised under the tripartite license agreement.
• Ranjit Kumar for COC for Aircel: Payment to banks after payment of AGR dues would be a violation of IBC. If the govt allowed spectrum as security, Govt can't backtrack now. Even the Ministry of Corporate Affairs has sought for spectrum sale under IBC.
• Ranjit Kumar for COC for Aircel: Banks' dues are the same as AGR dues for Aircel. If all proceeds are used to satisfy AGR dues, banks dealing with public money will also not get anything.
• Ranjit Kumar for COC for Aircel: Spectrum is the raw material for telcos. By not allowing the spectrum sale, SC will push all the insolvent companies into liquidation.
• Ranjit Kumar for COC for Aircel: The requirement to pay AGR is entirely contractual. The tripartite agreement recognises the spectrum as security before banks. The payment of dues to a company shall be decided under the law of land - IBC.
• Ravi Kadam concludes for the Monitoring Committee of Aircel. Former Solicitor General Ranjit Kumar begins for COC of Aircel.
• SC observes: Spectrum trading is different from the sale of the spectrum in IBC. Without paying for the horse, operators are taking a ride. Unless and until dues are paid, nobody can start using the spectrum. Can a liability like AGR be wound up in this fashion, under the guise of selling spectrum under IBC.
• SC observes: We are extremely worried that almost all of the entire AGR dues will be wiped out in the IBC process. And after the sale of the spectrum, the new user will have extinguished any pending demand against the spectrum in question.
• Important: Monitoring Committee of Aircel admits that less than 1 percent of AGR dues will be paid as per approved resolution plan.
• Ravi Kadam for Aircel Monitoring Committee to SC: Resolution process has concluded, UVARC plan has been approved. DoT applied as operational dues, recognised by COC. COC has approved the plan, following the IBC. Not even 1 percent of the AGR demand will be paid. DoT was a part of the COC meetings.
• SC observes: What has happened to AGR dues? How much has been paid?
• Ravi Kadam for Aircel Monitoring Committee to SC: The right to use the spectrum is an asset. To keep the company as a going concern, the right to use will be monteised upon approval of the resolution plan. Resolution applicant is UVARC.
• SC observes: Is Aircel looking to sell spectrum under IBC?