NCLT Ahmedabad Orders Return Of 150 Leased EVs In Gensol EV Lease's Insolvency

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has ordered Omega Seiki Mobility Private Limited to return leased electric vehicles belonging to Gensol EV Lease Limited, which is undergoing insolvency proceedings.

While directing it to return the leased electric vehicles, the tribunal declined to decide Gensol EV Lease Limited's claim for about ₹1.14 crore in dues. It left the rival monetary claims open.

The bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed, “The record discloses the existence of rival monetary claims and disputed questions of fact arising out of the contractual relationship between the parties.”

Gensol EV Lease Limited had leased 150 electric vehicles to Omega Seiki Mobility under agreements executed in December 2023 and July 2024. Ownership of the vehicles had remained with Gensol.

After Gensol entered insolvency proceedings, the Resolution Professional sought return of the vehicles and payment of outstanding lease rentals.

Omega disputed the monetary claim. It pointed to a security deposit of about ₹37.84 lakh paid to Gensol and argued that the dispute involved contractual claims and adjustments.

It also argued that the dispute involved contractual claims, adjustments and reciprocal liabilities.

The company informed the tribunal that it had already recovered 20 vehicles from customers and was prepared to hand them over. It further stated that 30 vehicles were with Reinvent Agrochain Private Limited and that legal action and police complaints had been initiated for their recovery.

The tribunal found that the leased vehicles belonged to the Corporate Debtor. It held that the RP was under a statutory obligation to secure and preserve those assets.

The bench noted that Omega Seiki had acknowledged possession of certain vehicles and had undertaken to hand them over. It therefore held that the RP was entitled to directions for recovery of the vehicles.

Declining to adjudicate the claim for outstanding dues, the bench observed,

“Though this Adjudicating Authority possesses jurisdiction under Section 60(5) of the Code, the present dispute involving monetary claims and counterclaims would require detailed evidentiary examination and reconciliation of accounts.”

Omega Seiki had also argued that the disputes arose from contractual obligations governed by an arbitration clause. The tribunal, however, held that the arbitration clause did not bar its jurisdiction to order preservation, protection and recovery of assets belonging to the Corporate Debtor.

On this aspect, the bench observed:

“We are of the considered view that the existence of an arbitration clause by itself does not bar the jurisdiction of this Adjudicating Authority insofar as preservation, protection and recovery of assets belonging to the Corporate Debtor are concerned.”

Accordingly, the tribunal directed Omega Seiki to hand over all remaining leased vehicles in its possession, custody or control within 15 days. The vehicles are to be handed over along with documents, chargers, accessories, spare keys and related records.

Omega Seiki was also directed to continue legal and police efforts to recover vehicles from Reinvent Agrochain and hand them over to the RP upon recovery.

The tribunal left the claim for about ₹1.14 crore undecided. It clarified that all rights and contentions relating to monetary claims, counterclaims, damages, adjustments, security deposits, and reconciliations would remain open to the parties.