Spectrum sharing and trading liability for AGR dues clarified, with settled demands barred from reopening and instalment relief allowed.

Spectrum sharing guidelines do not transfer past AGR dues of the original licensee to the sharing operator; each operator remains liable only for its own spectrum-linked dues. Under spectrum trading guidelines, a buyer does not assume the seller's past dues in a partial trade, while a complete transfer may carry dues attached to the transferred spectrum as contemplated by the guidelines. The settled AGR demand could not be reopened or recalculated, but the Court modified only the payment schedule, allowing instalment-based liquidation while preserving the Government's right to recover the full dues and enforce consequences on default.

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Issues: (i) whether, in cases of spectrum sharing, the sharing operator can be saddled with the past AGR dues of the original licensee; (ii) whether, in cases of spectrum trading, the buyer's liability extends to the seller's past dues and to what extent; (iii) whether the DoT's demand on AGR dues can be recalculated or reopened, and what payment schedule should govern the outstanding dues.

Issue (i): whether, in cases of spectrum sharing, the sharing operator can be saddled with the past AGR dues of the original licensee?

Analysis: The spectrum sharing guidelines permit pooled use of spectrum while the right to use remains with each licensee. The guidelines require each sharer to continue paying its own AGR-linked dues and provide for an increment in spectrum usage charge, but they do not create liability on the sharing operator for the pre-existing dues of the other licensee. Liability remains confined to the spectrum and period actually used by each operator.

Conclusion: The sharing operator is not liable for the past AGR dues of the original licensee; it remains liable only for its own AGR-based dues arising from its use of spectrum.

Issue (ii): whether, in cases of spectrum trading, the buyer's liability extends to the seller's past dues and to what extent?

Analysis: Under the trading guidelines, the seller must clear its dues before concluding a trade. Where only part of the spectrum is traded, the buyer does not assume the seller's past dues for the untraded portion. Where the entire spectrum holding is transferred, the buyer may be liable for dues attributable to the traded spectrum, while liabilities unknown on the effective date may be recovered by the Government from buyer or seller jointly or severally in accordance with the guidelines and clarification.

Conclusion: The buyer is not liable for the seller's past dues in a partial trade, but in a complete trade the buyer may bear the dues attached to the transferred spectrum in the manner contemplated by the trading guidelines.

Issue (iii): whether the DoT's demand on AGR dues can be recalculated or reopened, and what payment schedule should govern the outstanding dues?

Analysis: The AGR demand already stood settled by the earlier judgment and no fresh reassessment or recalculation was permissible. However, considering the financial condition of the sector, the Court modified the time schedule for payment and accepted instalment-based liquidation of the dues, while preserving the Government's entitlement to recover the full amount with contractual consequences on default. The dues were also directed to be paid with an initial upfront percentage and thereafter in yearly instalments within the stipulated period.

Conclusion: Reassessment was disallowed, and the outstanding AGR dues were directed to be paid in instalments under the modified schedule.

Final Conclusion: The Court upheld the enforceability of AGR dues, rejected any reopening of the settled demand, protected the Government's recovery rights, and confined relief to a revised payment schedule while clarifying the limited liability rules for spectrum sharing and trading.

Ratio Decidendi: Contractual and guideline-based obligations governing spectrum sharing and trading determine liability for AGR dues, and a settled AGR demand cannot be reopened by self-assessment or recalculation once conclusively adjudicated.

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