NCLT Ahmedabad Directs Zyngo EV Mobility To Hand Over 16 Leased EVs To Gensol EV Lease

The Ahmedabad National Company Law Tribunal (NCLT) on 27 July, partly allowed an application filed by the RP of Gensol EV Lease Ltd. and directed Zyngo EV Mobility Pvt. Ltd. to hand over 16 leased electric vehicles (EVs), along with their documents, keys and accessories.

A Bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma held that a Resolution Professional (RP) can seek recovery of leased assets lying with a third party during the Corporate Insolvency Resolution Process (CIRP), while disputes over damages, vehicle condition, lease rentals and CIRP costs must be decided separately by the appropriate forum. The Tribunal observed:

“The jurisdiction of this Adjudicating Authority under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 is confined to adjudication of questions arising out of or in relation to the insolvency resolution process. In the facts of the present case, the disputed claims relating to damages, compensation, deterioration of vehicles or breach of contractual obligations cannot be conclusively determined in these summary proceedings.”

The RP of Gensol EV Lease Ltd. sought immediate return of the 16 EVs leased to Zyngo under a Master Lease Agreement dated 19 October 2023. Under the Agreement, Zyngo was required to return the leased vehicles upon expiry or termination of the lease period, along with the relevant documents, keys and accessories. It was also required to fulfil its obligations relating to insurance, maintenance and wear and tear.

Gensol EV Lease Ltd. entered CIRP on 13 June 2025. Its RP claimed that Zyngo continued to retain the vehicles despite repeated requests for their return, thereby obstructing the preservation and valuation of the assets. Zyngo subsequently entered CIRP on 1 July 2025 before the National Company Law Tribunal, Chandigarh Bench, with Rajiv Khurana appointed as its RP.

The RP of Gensol argued that the EVs constituted assets of the Corporate Debtor and had to be preserved under Sections 18 and 25 of the Insolvency and Bankruptcy Code, 2016 (IBC). It was submitted that despite repeated emails and claim submissions, Zyngo had neither returned the vehicles nor disclosed their condition. Further that lease rentals accruing after commencement of CIRP should be treated as CIRP costs. It was also submitted that an inspection found the vehicles damaged and non-operational.

Zyngo's RP argued that the claim had been duly admitted and the locations of the vehicles had been disclosed. It was submitted that during a joint inspection on 28 June 2026, the RP of Gensol refused to take possession unless the vehicles were first repaired and restored to working condition. Further, that all 16 EVs belonging to Gensol were readily available and that Zyngo was not required to repair or refurbish assets belonging to another Corporate Debtor. It was contended that the vehicles were available for collection on an “as is where is” basis.

The Bench noted that the vehicles belonged to Gensol and had been leased to Zyngo, while both parties admitted that the vehicles were available and had participated in a joint inspection. It further noted that Sections 18(1)(f), 20(1) and 25(2)(a) of the IBC impose statutory obligations on the Interim Resolution Professional (IRP) or RP to preserve, protect and take control and custody of the Corporate Debtor's assets, including assets lying in the possession of third parties. It observed:

“The leased EV vehicles admittedly constitute assets of the Applicant Corporate Debtor. Their recovery and preservation are necessary for effective conduct of the Corporate Insolvency Resolution Process and for value maximisation of the assets.”

The Bench also held that the RP of Gensol was entitled to directions for the handover of the vehicles, along with all documents, keys, insurance papers and accessories. It further noted that Zyngo's RP was obliged to preserve the assets and facilitate their delivery. The pendency of proceedings under Section 19(2) of the IBC against the suspended directors did not absolve the RP of this responsibility.

However, the Tribunal declined to conclusively determine whether the vehicles were required to be returned in good working condition. It left open the disputes concerning damages, missing parts, deterioration, lease rentals and CIRP costs for adjudication before the appropriate forum.

Accordingly, the NCLT directed Zyngo's RP to hand over all 16 EVs to Gensol EV Lease Ltd. within seven days, along with the original documents, keys and accessories.

For Applicants: Advocate Rishi Singhal

For Respondents: Advocate Viren Sharma