SMAS Auto-Leasing Entitled To Protection & Preservation Of EVs Leased To 'Blu Smart', 'Gensol' Pending Arbitration: Delhi High Court

The Delhi High Court granted SMAS Auto interim protection for its leased electric vehicles pending arbitration with a defaulting customer. Justice Prathiba Singh directed the lessee to maintain and insure the 35 EVs while prohibiting their transfer. The case involves ₹2.8 crore unpaid lease rentals where the lessee allegedly diverted vehicles. This rare pre-arbitration asset protection ensures meaningful recovery options for financiers in emerging EV asset classes. The order balances creditor rights with due process, allowing the lessee to use vehicles during arbitration but safeguarding their value. Fintech lenders view this as enabling EV financing ecosystem growth by mitigating asset diversion risks through judicial recourse.