NCLAT refuses to grant relief on asset freeze order on Gensol entities

The National Company Law Appellate Tribunal (NCLAT), Delhi, on Wednesday refused to grant any relief to entities related to Gensol Engineering Ltd. with regard to the freezing of its assets ordered by the vacation bench of National Company Law Tribunal (NCLT), Ahmedabad, and reverted the matter to the NCLT.

On May 28, the vacation bench of NCLT, Ahmedabad  had said that the investigation reports and regulatory findings prima facie supported the Union Ministry of Corporate Affairs’ (MCA) claims of systemic fraud  by promoters of Gensol Engineering Ltd. and related entities, and granted the interim relief sought by the Ministry, including freezing of accounts.

 Matrix Gas and Renewable Ltd. and Blu Smart Fleet Private Ltd., the entities linked to Gensol, had moved separate appeals before NCLAT seeking vacation of the order and pointed out that it was passed without affording an opportunity of being heard.

They also cited hardships since the payment of salaries and other running expenses of the companies shall be due.

“We dispose of these two appeals by requesting the NCLT to treat these two appeals as applications  for vacation of stay granted vide order dated 28.05.2025 and its consequent orders, while keeping open all the submissions which may be made before the  NCLT by either parties,” NCLAT said in its order, while also disposing of other pending applications. The NCLT is set to hear the cases on June 12.

Published - June 04, 2025 08:27 pm IST