Delhi HC orders status quo on 95 more EVs leased to Gensol, BluSmart

Business Standard

29-04-2025

The Delhi High Court on Tuesday ordered a status quo on 95 more electric vehicles (EVs) leased to beleaguered firms Gensol Engineering and BluSmart Mobility, and appointed a receiver to take the custody of the EVs, barring the companies from selling, transferring or creating third-party rights for the vehicles.
The vehicles were leased by finance firm Clime Finance Private Limited.
The court-appointed receiver would be responsible for upkeep of the vehicles, which includes battery maintenance.
In the order, a single-judge bench of Justice Jyoti Singh said that Gensol and BluSmart will not interfere with the receiver's job of upkeep of the vehicles. Ride-hailing firm BluSmart is a subsidiary of Gensol Engineering.
'In case of any obstruction, it will be open to the receiver to take police assistance from the local police station, which shall render full cooperation,' the court said.
Clime Finance moved the High Court under Section 9 of the Arbitration and Conciliation Act, saying it had leased 95 Tata electric vehicles (EVs) to Gensol and BluSmart in 2022 for cab and ride-share services for three years. It said that both the companies had not paid lease payments in March 2025. Section 9 empowers the court to grant interim reliefs to parties in arbitration proceedings before, during, or even after the arbitral award is made, but before its enforcement.
Clime raised concerns after BluSmart stopped its operations and said their contracts allowed them to repossess the vehicles in case of a default. The company claimed 'absolute and paramount rights' over the EVs, saying the leases stood terminated.
'These leases have been terminated, and Securities and Exchange Board of India (Sebi) has also initiated an inquiry against the respondent, Mr. Puneet Jaggi. I am requesting that, until the matter is resolved, they be restricted from alienating or dealing with the vehicles,' Clime's lawyer told the court.
'These are electric vehicles, and if their batteries are not maintained, they will get drained, causing irreversible damage... I'm not requesting possession at this stage, but at least the receiver should take adequate steps to preserve the cars,' he added.
The next date of hearing has been scheduled for July 24.
This is the second Gensol and BluSmart EV lessor to have approached the court in less than a month since the ride-hailing firm suspended its pan-India operations.
The Delhi High Court had on April 25 restrained Gensol and BluSmart from creating third-party rights on the 175 EVs leased to them by Japanese financial services group Orix.
Orix had also entered into lease agreements with the two companies as part of a green mobility initiative. Under the agreement, 175 EVs were leased to support BluSmart's ride-hailing operations in India. In this, cofounder of Gensol and BluSmart Anmol Singh Jaggi served as a guarantor for the lease obligations.
Orix moved the court alleging breaches in the agreement, which includes default in lease payment amounting to ~4 crore. It has sought to prevent Gensol and BluSmart from disposing of leased vehicles. Orix also informed the court of its intention to start arbitration proceedings as per the dispute resolution clause in the agreements.
BluSmart on April 16 had paused cab bookings in certain parts of Delhi-NCR, Bengaluru, and Mumbai, the three cities where it operates. The rides were halted a day after Sebi barred the promoters and directors of Gensol Engineering — Anmol Singh Jaggi and Puneet Singh Jaggi — from accessing the securities markets allegedly for fraudulent practices and funds. The market regulator also restricted the duo from holding any key positions at any listed firm.