TL;DR
NCLAT rejected an appeal by Log 9 Mobility's suspended directors, affirming the NCLT's order to assist in recovering 100 leased EVs amid the company's insolvency.
The National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal filed by two suspended directors of Log 9 Mobility, upholding an earlier National Company Law Tribunal (NCLT) order. The NCLT had directed the directors to assist in the recovery of 100 electric vehicles (EVs) that were leased by the debt-ridden company from Gensol EV Lease Ltd. This decision comes as part of Log 9 Mobility's ongoing insolvency resolution process.
The ruling by the NCLAT on August 9, 2026, reinforces the legal obligation of company executives to cooperate during insolvency proceedings, particularly concerning the recovery of leased assets. The case highlights the complexities involved in managing assets, especially electric vehicles, within companies undergoing financial distress in India's rapidly evolving EV sector.
