Archive · 9 Aug 2026
NCLAT junks Log 9 Mobility executives' appeal on EV recovery
A company called Log 9 Mobility had borrowed electric cars from another company, Gensol EV Lease Ltd.
Log 9 Mobility got into money trouble, and so did Gensol EV Lease Ltd.
When a company cannot pay its debts, a special court helps sort things out — that process is called insolvency.
Gensol EV Lease Ltd asked the court to help get its 100 cars back.
The court told two former managers of Log 9 Mobility, called suspended directors, to help find and return the cars.
Those managers did not want to help, so they complained to a higher court.
They said the cars were not their problem anymore because they did not sign the lease contract with Gensol.
But the higher court said the managers still have a duty to help return the cars.
The court said managers cannot run away from responsibility just because their company is in trouble.
So the managers must cooperate with the people running the insolvency process and help get the cars back.
NCLAT rejected an appeal by Log 9 Mobility's two suspended directors against an NCLT order directing them to assist in recovering 100 leased electric vehicles.
The vehicles were leased from Gensol EV Lease Ltd, which is also undergoing its own insolvency process.
The directors argued they had no contract with Gensol and that NCLT lacked the power to issue such directions.
NCLAT cited the wide powers granted under Section 60(5) of the Insolvency and Bankruptcy Code.
NCLAT found the appeal inconsistent with the directors' July 4, 2026 submissions, which acknowledged providing detailed vehicle information.
- Who
- Log 9 Mobility's two suspended directors (appellants) and Gensol EV Lease Ltd's resolution professional (respondent), with a three-member NCLAT bench delivering the ruling.
- What
- NCLAT rejected the directors' appeal against an NCLT order directing them to assist in identifying and recovering 100 electric vehicles leased from Gensol EV Lease Ltd.
- When
- Reported on August 9, 2026; the NCLT order was issued on July 21; Log 9 Mobility entered CIRP on September 15, 2025.
- Where
- India — report filed from New Delhi; the NCLT order came from the Ahmedabad bench; the vehicles are located at Log 9 Mobility's Faridabad site.
- Why
- To support Gensol EV Lease's insolvency resolution by recovering leased EVs that could not be located through information provided by Log 9's resolution professional.
Directors' Position
Tribunals' Position
Authority to direct suspended directors
Directors' Position
The directors contended they had no contract with Gensol and that NCLT was not empowered to direct executives of the suspended management of another corporate debtor already under insolvency.
Tribunals' Position
NCLAT held that under Section 60(5) of the Insolvency and Bankruptcy Code, NCLT has wide powers to issue such directions, and the directors cannot refuse to assist.
Responsibility after CIRP
Directors' Position
The directors argued they could not be held responsible merely because Log 9 had entered the Corporate Insolvency Resolution Process.
Tribunals' Position
NCLAT said entering CIRP does not absolve suspended management of the duty to help identify and hand over the vehicles, noting the inconsistency with the directors' July 4, 2026 submissions.
- Appellate tribunal
- National Company Law Appellate Tribunal (NCLAT)
- Companies involved
- Log 9 Mobility and Gensol EV Lease Ltd
- Vehicles to be recovered
- 100 electric vehicles
- Vehicle location
- Log 9 Mobility's Faridabad site
- Key legal provision
- Section 60(5), Insolvency and Bankruptcy Code (IBC)
- Date of NCLT order
- July 21
- Log 9 Mobility CIRP start date
- September 15, 2025
- Report published
- August 9, 2026
