NCLT Initiates Insolvency Proceedings Against BluSmart Mobility Over ₹1.28 Cr Debenture Default

The NCLT Ahmedabad bench has admitted an insolvency petition against BluSmart Mobility Limited, filed by Catalyst Trusteeship Limited over a ₹1.28 crore default on 15 non-convertible debentures issued in April 2023.

Rejecting BluSmart’s defence of financial hardship and alleged procedural lapses, the Tribunal found clear evidence of default, including bank records and a debt acknowledgement by its co-founder. It held that the debt qualified as a financial debt under Section 5(8) and 3(12) of the IBC.

The IRP is required to issue a public announcement within three days and invite claims from creditors.

The Registrar of Companies has been directed to update BluSmart’s status as “under CIRP” on the Ministry of Corporate Affairs portal.