NCLT Ahmedabad Admits Another Blu-Smart Entity To Insolvency Over Rs 142 Cr Default

The National Company Law Tribunal (NCLT) at Ahmedabad has admitted Blu-Smart Charge Private Limited into the Corporate Insolvency Resolution Process after a default of Rs 142.95 crore on debenture payments.

A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma admitted a petition filed by Catalyst Trusteeship Limited under Section 7 of the Insolvency and Bankruptcy Code. The bench said the material on record clearly showed the existence of a financial debt and a default.

It also relied on the company's own admission. “The corporate debtor has acknowledged that it is unable to meet its liabilities as and when they fall due,” the tribunal observed.

Blu-Smart Charge Private Limited is a wholly owned subsidiary of Blu-Smart Mobility Limited and is part of the Gensol Engineering group. The company functions as the charging infrastructure arm of Blu-Smart and was set up to build and operate electric vehicle charging hubs across India.

According to Catalyst Trusteeship, it subscribed to 1,245 secured, unlisted, redeemable, non-convertible debentures issued by Blu-Smart Charge, aggregating to Rs 124.50 crore.

The company failed to service coupon payments and redemption amounts in terms of the debenture trust deed. A notice of default was issued on April 18, 2025. Corporate guarantees were also invoked, but no payments were received. The total default stood at Rs 142.95 crore as of November 19, 2025.

Blu-Smart Charge did not dispute the debt or the default. It accepted that the debentures had been issued and that the dues remained unpaid. The company said its weak financial position, as well as that of its holding company, had made it impossible to service its obligations.

It also informed the tribunal that its parent company, Blu-Smart Mobility Limited, was already under insolvency and that the committee of creditors in that case had resolved to take over the management and control of the subsidiary.

Apart from Blu-Smart Charge, several other companies in the same group are facing insolvency proceedings. Blu-Smart Mobility Limited, the parent company, was admitted into insolvency in July 2025. Blu-Smart Fleet Private Limited was admitted into CIRP in December 2025.

CIRP is also pending against Gensol Engineering Limited and Blu-Smart Mobility Tech Private Limited. The co-founder of Gensol, Puneet Singh Jaggi, is also undergoing personal insolvency proceedings.

After examining the debenture trust deed, bank records, and affidavits, the tribunal held that the requirements under Section 7 of the IBC were met.

It admitted Blu-Smart Charge Private Limited into CIRP, declared a moratorium under Section 14 of the Code, and appointed NPV Insolvency Professionals Private Limited as the interim resolution professional to take over the company's management with immediate effect.

For Applicant: Advocate Jay Kansara

For Respondent: Advocate Monaal J. Davawala