Vehicles Repossessed Before CIRP Can't Form Part Of Corporate Debtor's Assets: NCLAT In Appeal By SMAS Auto Leasing Against Gensol
The National Company Law Appellate Tribunal bench of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical), disposed of an appeal filed by SMAS Auto Leasing India Pvt. Ltd. against the order of the National Company Law Tribunal Ahmedabad,which had admitted filed by the Indian Renewable Energy Development Agency Limited against Gensol Engineering Limited. It held that since...
The National Company Law Appellate Tribunal bench of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical), disposed of an appeal filed by SMAS Auto Leasing India Pvt. Ltd. against the order of the National Company Law Tribunal Ahmedabad,which had admitted filed by the Indian Renewable Energy Development Agency Limited against Gensol Engineering Limited.
It held that since 152 of the 164 leased electric vehicles had already been repossessed by SMAS under Delhi High Court orders prior to the commencement of the Corporate Insolvency Resolution Process (CIRP), no purpose would be served in keeping the appeal pending.
Facts of the Case:
The appellant, SMAS Auto Leasing India Pvt. Ltd. entered into a master agreement with Gensol Engineering and leased 164 electric vehicles.
However, Gensol Engineering defaulted on rent payments, after which SMAS terminated the agreement in April 2025 and secured interim relief from the Delhi High Court, which appointed receivers to take possession of the vehicles.
Later, in June 2025, NCLT admitted the section 7 application of Indian Renewable Energy Development Agency Limited and imposed a moratorium, restricting recovery of assets from Gensol. However, when the moratorium was imposed 152 EVs were already in the receivers' custody.
Thereafter, SMAS challenged the NCLT's order, contending that the lease had already been terminated and the vehicles remained its property.
The NCLAT remarked that the scope of appeal was very limited since 152 EVs were already in the receivers' possession before the CIRP began. Since the vehicles were taken over after the Delhi High Court's order, they do not form part of Gensol's insolvency estate and can't be dealt with by the Interim Resolution Professional.
Finding no further purpose in continuing the matter, the NCLAT disposed of the appeal.
Case Title: SMAS Auto Leasing India Pvt. Ltd. v. Gensol Engineering Ltd. Through Its CoC and IRP
Case No.: Company Appeal (AT) (Ins) No. 1042 of 2025
Judgment Date: 02/09/2025
For Appellant For Respondents : Mr. Arun Katpalia, Sr. Adv. with MR. Sukrit Kapoor, Mr. Aditya Bhattacharya, Ms. Simran Tandon, Mr. Sarthak Miglani, Mr. Banshay Kaul Mr. Navnit Kumar, Advocates
For respondents: Mr. Rishi Singhal, Ms. Reema, Mr. Anuj Kr. Pandey, Advocates of IRP/ R-1 Mr. Saurav Panda, Mr. M. Nijhawan, Mr. Gaurav Arora, Ms. Anushri Joshi, Advocates