UPSC Prelims Practice Questions — SBI seeks review of SC verdict barring use of spectrum as an ‘asset’ in IBC proceedings

Q1. Which one of the following Supreme Court judgments is regarded as the first landmark ruling to hold that scarce natural resources like spectrum must invariably be alienated only through a non-discriminatory method in the public interest?

  • A. The 2G Spectrum case (2012)
  • B. The Aircel spectrum-IBC case (2026)
  • C. Rupa Ashok Hurra v. Ashok Hurra (2002)
  • D. The TMA Pai Foundation case (2002)

Q2. With reference to the constitutional and legal status of telecom spectrum as affirmed by the Supreme Court, consider the following statements: Which of the above is/are correctly identified?

  1. Legal title to spectrum vests exclusively in the Union of India and is held in trust for the public.
  2. The description of spectrum as a 'material resource of the community' echoes the language of Article 39(b) of the Constitution.
  3. A telecom licence confers ownership of the allocated spectrum on the licensee.
  4. The State may alienate spectrum only through auction and by no other method.
  • A. 1 and 2
  • B. 2 and 3
  • C. 1, 3 and 4
  • D. 3 and 4 only

Q3. The Supreme Court bench that delivered the February 2026 verdict holding that spectrum is not an 'asset' under the IBC comprised how many judges?

  • A. Two
  • B. Three
  • C. Five
  • D. Seven

Q4. The February 2026 Supreme Court verdict barring spectrum from being treated as an IBC asset arose primarily and directly out of the insolvency proceedings of which one of the following companies?

  • A. Aircel Group
  • B. Reliance Communications (RCom)
  • C. Videocon Telecommunications
  • D. Vodafone Idea

Q5. With reference to the Corporate Insolvency Resolution Process (CIRP) under the IBC, 2016, consider the following statements. Which of the above is/are NOT correct?

  1. The Committee of Creditors must approve a resolution plan by a 66% voting share.
  2. The moratorium under Section 14 is declared by the interim resolution professional.
  3. The IBBI is the statutory regulator established under the Code for insolvency professionals and processes.
  4. CIRP for a corporate debtor may be initiated under Sections 7, 9 or 10 of the Code.
  • A. 1 and 3
  • B. 2 only
  • C. 3 and 4
  • D. 1 and 4

Q6. Under which section of the Insolvency and Bankruptcy Code, 2016 is the moratorium during the corporate insolvency resolution process declared?

  • A. Section 14
  • B. Section 7
  • C. Section 10
  • D. Section 31

Q7. With reference to the review petition filed by SBI in 2026 against the spectrum-IBC verdict, consider the following statements. Which of the above is/are NOT correct?

  1. SBI contended the judgment contains 'errors apparent on the face of the record'.
  2. SBI argued the ruling's logic could extend beyond telecom to sectors such as mining and power.
  3. SBI argued the judgment left unresolved whether banks hold a valid security interest over spectrum usage rights.
  4. SBI sought review solely on the ground that the deciding bench lacked jurisdiction as it was not a Constitution Bench.
  • A. 1 and 2
  • B. 2 and 3
  • C. 4 only
  • D. 1, 3 and 4

Q8. The unpaid licence-fee and spectrum usage charge dues at the centre of the Aircel insolvency dispute were owed to which one of the following bodies?

  • A. Department of Telecommunications (Ministry of Communications)
  • B. Telecom Regulatory Authority of India (TRAI)
  • C. Ministry of Electronics and Information Technology (MeitY)
  • D. Insolvency and Bankruptcy Board of India (IBBI)

Q9. The power of the Supreme Court to review any judgment pronounced or order made by it — the sole constitutional basis of a review petition — is derived from which Article of the Constitution?

  • A. Article 137
  • B. Article 32
  • C. Article 143
  • D. Article 145

Q10. With reference to the framework for spectrum assignment under the Telecommunications Act, 2023, consider the following statements: Which of the above is/are correctly identified?

  1. Auction is the primary method for assigning spectrum for telecommunication services.
  2. Administrative (non-auction) assignment of spectrum is permitted for identified satellite-based services such as GMPCS.
  3. The Government is empowered to re-farm or harmonise frequency ranges.
  4. All spectrum, including that for satellite services, must be assigned only through auction.
  • A. 1 and 4
  • B. 1, 2 and 3
  • C. 2 and 3 only
  • D. 1, 3 and 4

Q11. The three Aircel entities initiated their voluntary insolvency proceedings under which section of the Insolvency and Bankruptcy Code, 2016?

  • A. Section 10
  • B. Section 7
  • C. Section 9
  • D. Section 11

Q12. The resolution plan submitted by UV Asset Reconstruction Company for the Aircel entities was refused approval by which of the following authorities?

  • A. Reserve Bank of India (RBI)
  • B. Securities and Exchange Board of India (SEBI)
  • C. National Company Law Tribunal (NCLT)
  • D. Insolvency and Bankruptcy Board of India (IBBI)