NCLT admits insolvency plea against BluSmart Mobility over ₹1.28 crore default

The National Company Law Tribunal (NCLT) at Ahmedabad has admitted BluSmart Mobility Limited into the Corporate Insolvency Resolution Process (CIRP) following a petition by Catalyst Trusteeship Limited over unpaid financial obligations totalling ₹1.3 crore.

A coram of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma said,

"The Financial Creditor establishes the existence of a financial debt under Section 5(8) of the IBC, arising from the issuance of 15 NCDs worth Rs. 15,00,00,000."

The Tribunal found that Catalyst, acting as debenture trustee for InCred Credit Opportunities Fund-I, had established a clear financial debt arising from 15 Non-Convertible Debentures worth ₹15 crore issued by BluSmart Mobility on April 20, 2023.

As per the petition, Blu-Smart defaulted on instalments of ₹64.17 lakh due on March 31, 2025 and ₹63.31 lakh due on April 30, 2025. A delayed payment of ₹64.77 lakh for February 2025 was also cited, which was made on March 18, 2025, only after a demand notice was issued. The total principal default amounted to ₹1.25 crore, with dues aggregating to ₹1.28 crore.

An email dated April 10, 2025 from BluSmart co-founder Anmol Singh Jaggi admitted the liability and promised payment, which was not made. This, along with other notices and records including filings with the National E-Governance Services Limited (NeSL), formed the basis of the default claim.

BluSmart argued that the delay in repayment stemmed from temporary financial stress and did not amount to a default under Section 3(12) of the IBC. It also termed the petition premature and defective, pointing to multiple default dates and initial non-disclosure of IRP details.

It alleged that the filing was strategically timed to coincide with a SEBI interim order dated April 15, 2025 against related party Gensol Engineering and its promoters, including Anmol Singh Jaggi and Puneet Singh Jaggi.

The Tribunal rejected Blu-Smart’s objections, holding that the defaults were material and sufficiently established by primary evidence, including the DTHD, bank statements and the debtor's own admission of liability.

"The Corporate Debtor’s defences of temporary financial crunch and malicious intent lack evidentiary support and do not negate the debt and default prerequisite for initiation of CIRP."

The Tribunal ordered the commencement of CIRP with immediate effect, imposed a moratorium under Section 14, and directed the interim resolution professional (IRP) to take charge of BluSmart's assets within seven days. It also directed Catalyst to deposit ₹10 lakh to cover initial CIRP costs.

The IRP is required to issue a public announcement within three days and invite claims from creditors. The Registrar of Companies has been directed to update BluSmart’s status as “under CIRP” on the Ministry of Corporate Affairs portal.

The petitioner was represented by Advocates Anmol A Mehta.

The respondent was represented by Advocate Himanshu Dubey.

Read Judgment