Delhi High Court Today (April 29) appointed a receiver for 95 EVs leased by Clime Finance to BluSmart and barred Gensol from creating third-party rights. The order follows lease defaults and ongoing regulatory scrutiny of Gensol.
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NEW DELHI: The Delhi High Court has taken a strong step to protect electric vehicles leased to BluSmart Cabs by Clime Finance Private Limited.
The Court has appointed a receiver to take deemed custody (not physical possession) of 95 electric vehicles.
ALSO READ: Delhi High Court Bars Gensol & BluSmart from Transferring Orix’s 175 Electric Vehicles
At the same time, it has stopped Gensol Engineering from selling or transferring ownership of these vehicles to any third party.
“This Court deems it appropriate to appoint a Receiver, who shall take charge of the vehicles and ensure that they are properly charged to avoid drainage of the batteries,”
-said Justice Jyoti Singh.
The judge also made it clear that the receiver will not physically remove the cars from where they are parked but will only take legal control or deemed possession.
This direction came after Clime Finance filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996. The company stated that it had leased 95 Tata electric cars to Gensol for BluSmart’s ride-sharing and cab operations in 2022 for a term of three years.
Clime claimed “absolute and paramount rights” over the vehicles as part of the lease agreement.
Clime told the court that Gensol and BluSmart had failed to pay the lease amount due in March 2025. Because of this default, Clime had sent legal notices. The company also said that the operations of Gensol and BluSmart seemed to have stopped, and it was now worried about the safety and upkeep of its cars.
Clime also said that it had the contractual right to take back the vehicles if payments were missed.
After listening to the arguments from both sides, the Court passed temporary orders with key instructions:
“Respondents are restrained from selling, alienating or creating third-party rights with regard to 95 Tata electrical vehicles,”
-the Court directed.
This means Gensol and BluSmart cannot sell or transfer these cars to anyone else.
Next, the Court explained what the receiver is allowed to do.
“The Receiver will not take physical possession of the vehicles or remove them,”
-the judge said.
However, the receiver must take care of the vehicles, especially by making sure they are charged regularly and properly maintained.
The Court also instructed that Gensol and BluSmart should not block or interfere with the receiver’s duties.
“Respondents will not in any manner hinder the Receiver from taking deemed possession. If they do so, the Receiver is entitled to seek assistance of the police,”
-said the Court.
The receiver’s fee has been fixed at Rs 5 lakh. The receiver has also been told to give regular updates to the Court about the condition of the vehicles and how they are being looked after.
This case will now come up again for further legal proceedings in July.
Clime Finance was represented in court by a large legal team, including Advocates Abhimanyu Mahajan, Shantanu Agrawal, Saurabh Seth, Manas Arora, Abhinav Tyagi, Ananya Garg, Tapojit Sarker, Dheeraj P Deo, Neelam Deol, and Anubha Goyal from Lexster Law LLP.
It is important to note that on April 25, the Delhi High Court also gave a similar order in a related case. It stopped Gensol Engineering and BluSmart Mobility from creating any third-party rights over 175 electric vehicles leased to them by Japanese financial services company Orix.
BluSmart Mobility is known for running India’s first all-electric ride-hailing taxi service. Unlike other taxi services where drivers own or buy their vehicles, BluSmart leases all its cars from finance companies like Orix. Drivers are salaried employees, and BluSmart manages everything—from vehicles to charging stations and maintenance.
This legal fight comes at a time when Gensol Engineering is already under regulatory scanner. Earlier in April, India’s stock market regulator SEBI (Securities and Exchange Board of India) sent a show-cause notice to Gensol for allegedly breaking corporate governance rules. This included not disclosing important financial transactions involving BluSmart and other related companies.
SEBI is also investigating issues with how Gensol has reported its income and how it has explained its financial liabilities. According to sources, SEBI found problems in Gensol’s internal company transactions, which may have made its financial statements look stronger than they actually are.
As the investigation continues, SEBI has also reportedly barred some Gensol officials from accessing the securities market. These regulatory actions have affected investor confidence, and Gensol’s share prices have seen major ups and downs in recent weeks.
In this case, Clime Finance was represented by Advocates Abhimanyu Mahajan, Saurabh Seth, Shantanu Agarwal, Abhinav Tyagi, Manas Arora, Ananya Garg, Neelam Deol, Abhiroop Rathore, Tapojit Sarkar, Anubha Goel, and Mayank Joshi.
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