Gensol's CoC, IRP deliberately delaying insolvency process: Lessor to NCLAT

SMAS Auto Leasing told NCLAT that Gensol's IRP and CoC had deliberately delayed the insolvency process in a dispute over e-vehicles, as the tribunal fixed hearing for September 2

The Interim Resolution Professional (IRP) and the Committee of Creditors (CoC) of insolvent firm Gensol Engineering are deliberately delaying the insolvency process by not filing their replies on time, SMAS Auto Leasing India, an appellant and lessor to Gensol, told the National Company Law Appellate Tribunal (NCLAT) on Thursday.

 

Both parties were required to file their replies by August 19.

 

“The issues are e-vehicles, which are depreciating assets that need to be recovered. They are being unfair and have deliberately delayed filing the reply,” the lawyer appearing for SMAS told the tribunal.

 

On August 5, NCLAT had granted interim relief to the lessor in a dispute concerning possession and use of e-vehicles during the ongoing insolvency process of Gensol Engineering.

 

SMAS informed the tribunal that it had already taken possession of 152 e-vehicles before the initiation of insolvency proceedings. It further stated that 12 e-vehicles remained with the Resolution Professional (RP).

 

On Thursday, the appellate tribunal told the parties it would hear the case regarding the disputed vehicles on Tuesday (September 2).

 

“The IRP is the joker in a pack of cards. He can be anywhere. Don’t worry about it. Let us see on Tuesday,” observed the bench of Member (Judicial) Justice N Seshasayee and Member (Technical) Barun Mitra.

 

In the previous hearing, SMAS had contended that the IRP could not interfere with vehicles that were in its possession before the commencement of insolvency proceedings.

 

SMAS also objected to an advertisement issued by the IRP for hiring vehicles currently under the RP’s control. The tribunal granted the appellant liberty to file an interlocutory application (IA) in relation to the advertisement within one week.

 

Gensol Engineering, which managed the electric-car ride-hailing platform BluSmart, was admitted to the insolvency process by the National Company Law Tribunal (NCLT) in Ahmedabad on a plea by the Indian Renewable Energy Development Agency (Ireda) over loan defaults of Rs 510 crore.

 

On April 16, BluSmart had paused cab bookings in parts of Delhi–NCR, Bengaluru and Mumbai — the three cities where it operates. The suspension came a day after Sebi barred Gensol promoters and directors Anmol Singh Jaggi and Puneet Singh Jaggi from accessing the securities markets for alleged fraudulent practices and misuse of funds.

 

The regulator also restricted them from holding any key positions in a listed firm.