NCLT Ahmedabad Admits Another Blu-Smart Subsidiary Into Insolvency Over ₹16.25 Crore Default

The National Company Law Tribunal (NCLT) at Ahmedabad has admitted another subsidiary of the Blu-Smart electric mobility group into insolvency, holding that Blu-Smart Fleet Pvt Ltd had defaulted on an operational debt of Rs 16.25 crore owed to Reliance BP Mobility Limited.

Blu-Smart Fleet provides fleet-management services exclusively to its parent company, Blu-Smart Mobility Ltd, a company that was providing all-electric ride-hailing services which is already undergoing insolvency proceedings.

The order dated December 3 marks yet another Gensol-linked entity facing insolvency proceedings, following the admission of Gensol Engineering , Blu-Smart Mobility Ltd and Blue-Smart Mobility Tech.

A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma held that the creditor's application met all statutory requirements under Section 9 of the Insolvency and Bankruptcy Code and that the default was clearly established.

The order read, “the present Petition is complete in terms of Section 9 of the Code” and that “the Operational Creditor is entitled to claim its dues, establishing the operational debt and default in payment of the Operational Debt beyond doubt.”

The case arose from an Electric Vehicle Charging Service Agreement dated April 1, 2024 under which Reliance BP Mobility provided Blu-Smart Fleet access to its EV charging stations. Reliance said it raised invoices for electricity usage between February and April 2025 and claimed amounts for replacement of spares and damages to charging infrastructure.

It said invoices raised between February and August 2025 were payable within 30 days but remained unpaid. It submitted bank statements, invoice requests generated by Blu-Smart Fleet and an affidavit stating that the debtor had never contested the invoices before the statutory demand notice issued in August 2025.

Blu-Smart Fleet argued that it was wholly owned by Blu-Smart Mobility Ltd and said its financial distress caused delays in payment. It contended that certain invoices and interest components created a pre-existing dispute and that the petition should not be admitted.

The tribunal rejected these arguments and noted that Blu-Smart Fleet had not disputed the agreement or the services prior to the demand notice. It also found that the debt crossed the statutory threshold and that the petition was filed within limitation.

The order said “The outstanding Operational Debt is more than rupees one crore which meets the threshold limit as per Section 4 of the Code and is well within the limitation as the default occurred on 01.04.2025, and the petition filed on 10.09.2025 is within the limitation period…. Accordingly, the Petition filed under Section 9 of the Insolvency and Bankruptcy code for initiation of corporate insolvency resolution process against the Corporate Debtor deserves to be admitted.”

The tribunal admitted the application, imposed a moratorium on proceedings and asset transfers and appointed Pawan Kumar Goyel as Interim Resolution Professional. Reliance BP Mobility was directed to pay Rs 5 lakh towards the initial cost of the insolvency process.