 "NCLAT allows Gensol lessor to retain vehicles taken before insolvency")
The National Company Law Appellate Tribunal (NCLAT) has granted interim relief to an appellant-lessor in a dispute concerning possession and use of e-vehicles during the ongoing insolvency process of Gensol Engineering.
SMAS Auto Leasing India, both the appellant and lessor to Gensol, 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).
The appellant contended that the RP could not interfere with vehicles that were in its possession prior to the commencement of the insolvency proceedings. SMAS Auto Leasing also objected to an advertisement issued by the RP regarding the hiring of 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.
Taking note of the limited scope of the appeal, the NCLAT directed both the Interim Resolution Professional and the Committee of Creditors (CoC) to file their replies within two weeks. The matter is scheduled to be heard next on August 28 for final disposal with respect to the vehicles in dispute.
The order was passed by a bench comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member).