SMAS Auto-Leasing Entitled To Protection & Preservation Of EVs Leased To 'Blu Smart', 'Gensol' Pending Arbitration: Delhi High Court

The Delhi High Court bench of Justice Jyoti Singh has granted interim relief under Section 9 of the Arbitration and Conciliation Act, 1996 to the the petitioner who is the owner of electric vehicles (EVs) leased under Master Lease Agreements upon apprehensions of financial distress, default in lease payments by the respondents and a risk of dissipation or deterioration of assets pending arbitration. The Court restrained the respondents from transferring or encumbering the EVs. Brief Facts SMAS Auto Leasing India Private Limited (Petitioner) filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 seeking urgent interim measures against Gensol Engineering Limited (Respondent No. 1), its affiliate Blu-Smart Fleet Private Limited, and its directors and promoters, Mr. Anmol Singh Jaggi and Mr. Puneet Singh Jaggi. The dispute arose out of two Master Lease Agreements: the first, dated 26.05.2021, under which Gensol leased 164 EVs from SMAS; and the second, dated 23.09.2022, under which Blu-Smart, a prominent Indian ridesharing company and sister concern of Gensol, leased 46 EVs from SMAS. Gensol and Blu-Smart defaulted in remitting the lease rentals. On 15.04.2025, the Securities and Exchange Board of India (SEBI) issued an interim order against Gensol and its founders/directors Anmol Singh Jaggi and Puneet Singh Jaggi, restraining them from holding key managerial positions and from dealing in securities due to alleged violations of securities laws, including, inter alia the siphoning of funds. The Petitioner approached the Court seeking protection of its leased assets. Observations The Court held that a prima facie case for interim relief was made out. It passed an order restraining Gensol and Blu-Smart from alienating, encumbering, or otherwise dealing with the leased EVs in any manner. It appointed a Receiver to take possession of the EVs and take all necessary steps to charge and preserve the EVs so that they remain in good and working condition. The Court issued further directions to Respondents to disclose the current status and location of the leased vehicles and to cooperate fully with the Receiver in identifying the locations where the EVs are currently stored. Case Title: SMAS Auto Leasing India Private Limited v. Gensol Engineering Limited & Ors.Citation: 2025 LiveLaw (Del) 528 Case Number: O.M.P.(I) (COMM.) 163/2025 For the Petitioner: Senior Advocate Mr. Rajshekhar Rao and Advocate Mr. Mayank Pandey, instructed by King Stubb and Kasiva, Advocates & Attorneys, along with Advocates Mr. Aditya Bhattacharya (Partner), Ms. Simran Tandon (Associate Partner), Mr. Sarthak Miglani (Associate), and Ms. Mehrunissa. Date of Order: 07.05.2025Click Here To Read/Download The Order

SMAS Auto-Leasing Entitled To Protection & Preservation Of EVs Leased To 'Blu Smart', 'Gensol' Pending Arbitration: Delhi High Court

Tazeen Ahmed

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