NCLAT refuses relief to Gensol units
Business Business: The bankruptcy appellate tribunal NCLAT on Wednesday refused to stay the NCLT order freezing the assets of Gensol, its promoters and related entities.
It has directed two Gensol group entities – BlueSmart Premium Feet and Matrix Gas & Renewable – to approach the Ahmedabad bench of the National Company Law Tribunal (NCLT) with their plea, where the matter will be heard on June 12.
The vacation bench of the NCLT had passed the order on May 28 on a plea filed by the ministry of corporate affairs directing freezing of the assets of Gensol, its promoters and related entities.
The two Gensol group entities had approached the National Company Law Appellate Tribunal (NCLAT) seeking an immediate stay on the orders passed by the NCLT.
They had argued that the NCLT passed the order on May 28 without giving them a proper hearing, which is against the rules.
BluSmart offers premium electric vehicle ride-hailing service BluSmart Mobility, while Matrix Gas & Renewables is a natural gas aggregation and green hydrogen infrastructure development company.
However, MCA officials opposed their plea during the proceedings.
They said the petition filed by the government before the NCLT contains specific allegations and such allegations have been duly considered by the tribunal while passing the order.
The companies also argued that the matter is now listed before the NCLT for hearing on June 12.
Requesting to extend the date, the appellants submitted that asset freeze may cause hardship as payment of salaries and other running expenses will be due.
