To avoid Gensol from creating third-party rights over the fleet, the Delhi High Court appointed a receiver to take deemed possession of the 95 electric vehicles leased by BluSmart Cabs from Clime Finance Private Limited.
In a Section 9 petition filed under the 1996 Arbitration and Conciliation Act, the order was passed. In 2022, Clime Finance, the petitioner, asserted “absolute and paramount rights” over 95 Tata electric vehicles that it had leased Gensol businesses for ride-hailing and taxi services for a period of three years.
The petitioner alleged that Gensol and Blu Smart had sent legal notices after defaulting on lease rentals payable in March 2025. Safety concerns over the leased fleet were raised by the further allegation that the respondents had ceased operations. Clime Finance alleged that upon default, it was contractually entitled to repossess the cars.
ndia’s first electrically-run ride-hailing service is operated by BluSmart Mobility. In contrast to the traditional aggregator model, where the drivers own or finance their vehicles, BluSmart leases its cars from lenders like Orix. Drivers receive salary payments, and BluSmart is responsible for maintenance, charging networks, and the fleet.
This suit was brought as Gensol Engineering was facing mounting regulatory scrutiny. A show-cause notice was issued to Gensol last month by the Securities and Exchange Board of India (SEBI) for purportedly violating corporate governance norms, such as not disclosing related-party transactions, particularly with BluSmart and other group firms.
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