IREDA vs. Gensol & Blu-Smart

On 28 May 2025, the Debts Recovery Tribunal-III, Delhi, passed interim orders in favour of Indian Renewable Energy Development Agency Limited (IREDA) in proceedings against Gensol Engineering Limited (OA 7 of 2025) and Gensol EV Lease Limited (OA 8 of 2025), among others.

The Tribunal, after hearing both parties, has restrained Gensol Engineering, Gensol EV Lease, and their promoters from selling, transferring, or otherwise dealing with any secured assets, including both movable and immovable properties. A court receiver has been appointed to take possession of hypothecated vehicles, with police assistance to be provided as needed.

The Tribunal has further specifically restrained defendants, Blu-Smart Mobility Ltd., Blu-Smart Fleet Pvt. Ltd. and Blu-Smart Mobility Tech Pvt. Ltd., from selling, transferring, or otherwise dealing with any of their assets, including in particular the intellectual property, trademarks, brand names, copyrights, technology, platform, goodwill, or any other intangible or tangible property, including specifically the brand name and associated marks for ‘Blu-Smart’, the associated website / mobile application and the data stored in the servers.

The defendants have also been directed to disclose full details of all assets, including tracking information for financed vehicles, and to file affidavits of assets with supporting documents. The Tribunal has further directed that, if any DEMAT accounts exist, depositories are to freeze these accounts and provide details of the shares to the Tribunal. Any settlement with unsecured creditors has been prohibited without the Tribunal’s prior approval.

The Tribunal found that IREDA had made out a prima facie case and that the balance of convenience was in its favour. It was observed that, without interim protection, IREDA could suffer irreparable loss not compensable in monetary terms.

Senior Advocate Mr. Rajeeve Mehra, along with Mr. Saurav Panda (Partner), Mr. Prateek Yadav (Principal Associate), Mr. Vishrut Kansal (Principal Associate), Ms. Mohana Nijhawan (Principal Associate), Mr. Gaurav Arora (Senior Associate), and Ms. Jyotsna Punshi (Associate) of Shardul Amarchand Mangaldas & Co, appeared for IREDA before the Tribunal.