The National Company Law Tribunal Ahmedabad bench on Monday admitted the cab hailing platform BluSmart Mobility into insolvency on a plea filed by Catalyst Trusteeship for a default of over Rs 1.28 crore.
Additionally, The Interim Resolution Professional appointed by the NCLT for BluSmart Mobility is NPV Insolvency Professionals Private Limited.
The financial creditor has been directed to pay an advance of Rs 10 lakh to meet the initial costs of the process. This amount will be adjusted against the final fees and expenses approved by the Committee of Creditors.
The IRP is expected to take control of all assets and records of the company within seven days of the order. If necessary, the IRP can seek help from the police, and the tribunal has instructed authorities to provide full cooperation. BluSmart's promoters and management have been placed under a legal obligation to fully assist the IRP, failing which the IRP may approach the tribunal for appropriate orders.
Following the admission, a moratorium under Section 14 of the Code has been imposed. This moratorium restricts the initiation or continuation of any legal proceedings against the company.
It also prohibits the transfer or sale of any of BluSmart Mobility's assets, and bars the enforcement of security interests created by the company. No recovery of property from the company's possession will be permitted while the moratorium is in effect.
The moratorium will continue until the insolvency process is completed or the tribunal approves a resolution plan or passes an order for liquidation.
The tribunal has also ordered that this decision be communicated to the relevant parties including the Registrar of Companies, who must update BluSmart Mobility's status on the Ministry of Corporate Affairs portal within seven working days.
BluSmart was founded by the Jaggi brother, who also promoted Gensol Engineering. Currently, insolvency woes are clouding over both the companies.
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