New Delhi, May 7 -- In another legal setback for Gensol Engineering Ltd and electric ride-hailing startup BluSmart, the Delhi high court on Wednesday barred the companies from creating third-party rights over 220 additional electric vehicles (EVs) leased from two separate lessors.

Justice Jyoti Singh issued the order while appointing court receivers to take possession of the vehicles. However, the court denied the lessors' request for repossession, stating that such relief does not fall within the ambit of Section 9 of the Arbitration and Conciliation Act, 1996, under which the petitions were filed.

The court also directed Gensol to submit a status report on the leased EVs within two days after the lessors raised concerns about the vehi...