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Informist, Tuesday, Jul. 29, 2025

 

NEW DELHI – The Ahmedabad bench of the National Company Law Tribunal has admitted a petition by Catalyst Trusteeship Ltd. to start insolvency proceedings against Blu-Smart Mobility Ltd. over unpaid dues worth INR 12.80 million. The tribunal appointed NPV Insolvency Professionals Pvt. Ltd. as the interim resolution professional of the debt-ridden company to carry out the functions as per the Insolvency and Bankruptcy Code, 2016.

 

"... this tribunal is satisfied that the financial creditor is entitled to the relief as sought. The corporate debtor's default justifies the admission of the petition and the initiation of CIRP (corporate insolvency resolution process) under the (Insolvency and Bankruptcy) Code," said the tribunal. It declared a moratorium under Section 14 of the 2016 Insolvency Code against Blu-Smart Mobility.

 

The admission of insolvency against Blu-Smart comes after Gensol Engineering Ltd., a company also promoted by Anmol Singh Jaggi and Puneet Singh Jaggi, was admitted into bankruptcy in June. 

 

In 2023, Blu-Smart had issued 15 secured, redeemable, unrated, and unlisted non-convertible debentures, with a face value of INR 10 million each aggregating to INR 150 million, to meet working capital requirements for its ride-hailing platform operating 100% electric four-wheeler cars. The non-convertible debentures were issued under a debenture trust and hypothecation deed executed between Catalyst Trusteeship, acting for the debenture holder, and Blu-Smart, with a tenor of 24 months.

 

Thereafter, Catalyst Trusteeship issued a notice of event of default, citing an outstanding liability on the part of Blu-Smart. Upon failure of Blu-Smart to pay its dues, Catalyst Trusteeship moved the tribunal to start insolvency proceedings against the corporate debtor.

 

In April, the Securities and Exchange Board of India said it was probing into 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 Gensol Engineering and its promoter directors Anmol Singh Jaggi and Puneet Singh 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.  End

 

Reported by Surya Tripathi

Edited by Tanima Banerjee

 

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