Authority: National Company Law Tribunal, Division Bench, Court - 1, Ahmedabad

Order Date: 22/06/2026

Case Overview

The Indian Renewable Energy Development Agency Limited (IREDA) filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of the National Company Law Tribunal Rules, 2016 against Gensol EV Lease Limited. The dispute arose from a Master Lease Agreement dated 01.08.2024 for leasing electric vehicles, where Gensol EV Lease failed to pay lease rentals and other charges as per the agreement. The applicant sought directions for return of 25 leased vehicles and recovery of outstanding lease rental dues amounting to Rs. 63,94,986.50 up to 30th June 2025, plus monthly dues of Rs. 9,13,569.50 for July to November 2025.

Despite proper service of notice, the respondents (Gensol EV Lease) neither filed any reply nor appeared to contest the application. A report from authorities indicated that bailable warrants could not be executed as the premises of Respondent No. 1 were found closed. During proceedings, the applicant's counsel confined the relief to the monetary claim only, as the issue of vehicle return had been resolved.

The Adjudicating Authority found jurisdiction under Section 60(5) IBC as the claim related to assets and receivables of the corporate debtor and bore nexus with the Corporate Insolvency Resolution Process. Based on the uncontroverted evidence including the Master Lease Agreement, correspondence, legal notices, and ledger accounts, the tribunal established a prima facie case for the outstanding dues.

Final Outcome

The NCLT directed Respondent No. 1 (Gensol EV Lease Limited) to pay the applicant a sum of Rs. 63,94,986.50 towards outstanding dues up to 30.06.2025, plus lease rental dues for the period from 01.07.2025 to 30.11.2025 at the rate of Rs. 9,13,569.50 per month, within 30 days from the date of the order. In case of failure to pay, the applicant/RP was granted liberty to take appropriate steps for execution of the order, including attaching personal assets of the respondent through a competent court. The application IA/1428(AHM)2025 was allowed and disposed of accordingly.

Topics: Insolvency Proceedings, Lease Rental Dispute