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Informist, Thursday, May 15, 2025

 

--Delhi HC bars Gensol Engg from creating third-party rights in 76 EVs 

--CONTEXT: HC hearing case by Gensol Engg's lessor Vriksh Advisors 

--HC appoints receiver for taking possession of 76 EVs from Gensol Engg 

 

NEW DELHI – The Delhi High Court on Thursday restrained Gensol Engineering Ltd. and its promoters and officials from selling, alienating or creating third-party rights over 76 Tata Tigor Electric Vehicles leased by Vriksh Advisors Pvt. Ltd. This comes days after the court had passed similar restraining orders against Gensol Engineering on the electric vehicles leased to it from multiple parties. Issuing notice to Gensol Engineering, the high court appointed a receiver for taking possession of the 76 electric vehicles from the company.

 

Hearing a petition under Section 9 of the Arbitration and Conciliation Act, 1996, the high court said a prima facie case is made out by the petitioner for grant of relief. Section 9 of the Act empowers Indian courts to grant interim measures of protection to parties involved in arbitration proceedings, before, during, as well as after arbitration but before the award is enforced.

 

In August 2023, the petitioner had leased 76 electric vehicles to Gensol Engineering through an agreement, which also contained an arbitration clause. The petitioner said the registration certificate of the leased vehicles was issued under the name of Vriksh Advisors, and as per the agreement, it had the right to take possession of the vehicles.

 

The petitioner said it recently came to know about the financial fraud, mismanagement and siphoning of funds by Gensol Engineering and its promoter-directors, Anmol Jaggi and Puneet Singh Jaggi. Further, ICRA has also downgraded Gensol Engineering's credit ratings, said the petitioner. 

 

Vriksh Advisors argued that Gensol Engineering had defaulted its lease payment for April. All the circumstances cause reasonable apprehension that Gensol Engineering may sell or dispose of the petitioner's electric vehicles, said Vriksh Advisors.  

 

Last month, the Securities and Exchange Board of India said it was probing Gensol Engineering and its promoters for diverting loans taken from Power Finance Corp. Ltd. and Indian Renewable Energy Development Agency Ltd. The regulator also issued an interim order against the company and its promoter-directors, Anmol and Puneet Jaggi, barring them from any securities market-related activity and from holding the post of director or any key managerial position in the company till further orders. 

 

The Enforcement Directorate had also conducted searches at Gensol Engineering's premises in Delhi, Gurugram in Haryana, and Ahmedabad in Gujarat, and had detained Puneet Jaggi from a hotel in Delhi. The raids were conducted under provisions of the Foreign Exchange Management Act. On Wednesday, IREDA had filed an insolvency application against Gensol Engineering for a default amount of INR 5.10 billion under the Insolvency and Bankruptcy Code.

 

At 1132 IST, shares of Gensol Engineering were up 5.0% at INR 62.44 on the National Stock Exchange.   End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Tanima Banerjee

 

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