No 3rd-party rights on more EVs: HC to Gensol, BluSmart

Court asks companies to submit comprehensive statements of assets and liabilities

- Krishna Yadav

In another legal setback for Gensol Engineering Ltd and electric ride-hailing startup BluSmart, the Delhi High Court on Wednesday barred the companies from creating third-party rights over 220 additional electric vehicles (EVs) leased from lessors.

Justice Jyoti Singh issued the order while appointing court receivers to take possession of the vehicles. However, the court denied the two lessors' request for repossession, stating that it does not fall within the ambit of Section 9 of the Arbitration and Conciliation Act, 1996, under which the petitions were filed.

The court also directed Gensol to submit a status report on the leased EVs within two days after the lessors raised concerns about their whereabouts. Additionally, Gensol and BluSmart were asked to provide a comprehensive statement of their assets and liabilities.

The order follows petitions by SMAS Auto Leasing India Pvt. Ltd and Shefasteq OPC Pvt. Ltd, which accused Gensol, BluSmart, and their promoters of breaching lease agreements and failing to pay dues.