The National Company Law Tribunal’s (NCLT) Ahmedabad bench reserved orders on interim applications made by respondents in the Gensol Engineering (GEL) & Ors versus Union of India, Ministry of Corporate Affairs (MCA).
A total of 13 pleas were filed by the arraigned individuals who moved the tribunal to recall, vacate, stay or suitably modify the ex parte interim order dated 28 May, 2025, passed in Company Petition No. 33 of 2025. This interim order resulted in the freezing of the bank accounts and lockers of GEL, its subsidiaries and associated individuals.
It is said that the bench comprising judicial member Shammi Khan and technical member Sanjeev Kumar refused to remove any respondent from the list of arraigned parties, they directed the individuals to file new affidavits by 19 June and ensure compliance of the interim order dated 28 May, 2025.
In previous hearings, companies BluSmart Premium Fleet and Matrix Gas Renewables, which had partnered with GEL for several projects, argued in front of the National Company Law Appellate Tribunal (NCLAT) that their financial operations came to a standstill because of the freeze, resulting in pending payments to staff and vendors. They also argued that the NCLT issued orders for the freeze without a proper hearing, in violation of procedural norms.
The MCA refuted these claims, stating that the NCLT had considered serious allegations of fraudulent conduct by the promoters of GEL and for conducting a detailed investigation would require compliance of the order dated 28.05.2025 along with continued co-operation from the respondents.
The bench would be pronouncing orders on the limited aspect of releasing of certain funds for day to day activities and issued directions for filing of affidavits to both the sides for further adjudication of the matter.