$~64 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 12^th December, 2024 + W.P.(C) 12992/2024 M/S UPGRID SOLUTIONS PRIVATE LIMITED AND ANR .....Petitioners Through: Mr. Jayant Mehta, Mr. Rupesh Gupta, Ms. Kritika, Ms. Jasleen Virk, Advocates with Mr. Vibhor Nijhawan, AR in person versus GOVT. OF NCT OF DELHI AND OTHERS .....Respondents Through: Ms. Harshita Nathrani, Advocate for Mr. Sameer Vashisht, ASC (Civil) for GNCTD with Mr. Bhupinder Singh, Nodal Officer (Scrapping Cell)

Transport Department, GNCTD CORAM:

HON'BLE MR. JUSTICE SANJEEV NARULA

JUDGMENT

SANJEEV NARULA, J. (Oral):

CM APPL. 73059/2024 (for early listing and disposal of the petition)

1. For the grounds and reasons stated in the application, the application is allowed and with the consent of the counsel, the main writ petition is called on the board by today itself.

2. The present application is disposed of.

W.P.(C) 12992/2024

3. The Petitioners are engaged in the business of issuing, leasing, Signature Not Verified Digitally Signed W.P.(C) 12992/2024 Page 1 of 14 distributing and swapping rechargeable Lithium-ion battery systems for e- vehicles, under the trade name “Battery Smart”. These Lithium-ion batteries, certified by the Automotive Research Association of India, [“ARAI”], incorporate advanced features such as — fast charging, Internet of Things (IoT) integration, Global Positioning System (GPS) tracking, and Controller Area Network (CAN) functionalities — designed specifically for electric and battery-operated vehicles. According to the Petitioners, they manage the country’s largest and fastest-expanding battery-swapping network for electric two and three-wheelers. Their service model is intended to encourage EV adoption by reducing downtime and costs through swift and convenient battery swaps.

4. The Petitioners’ grievance arises from a sweeping action undertaken by the Respondents, of impounding several e-rickshaws, which are equipped with the Petitioners’ Lithium-ion batteries. These batteries, provided on a lease-based swap model, form a crucial part of the e-rickshaw ecosystem. The Respondents state that the impounded e-rickshaws have been scrapped and destroyed by them as per legal norms. However, the Lithium-ion batteries have been recovered and now proposed to be disposed of through public auction.

5. The Petitioners claim that they retain ownership of the Lithium-ion batteries, which were never sold to the e-rickshaw owners, but merely leased out to them. On these grounds, they insist that the Respondents must return the batteries intact to the Petitioners, rather than disposing them. In this regard, the Petitioners made a representation dated 06^th September, 2024, to the Respondents, voicing their concerns and protesting against the Signature Not Verified

Digitally Signed W.P.(C) 12992/2024 Page 2 of 14

unwarranted destruction and proposed disposal of their leased batteries. When the Respondents failed to address these legitimate concerns, the Petitioners were left with no choice but to approach this Court through the present writ petition.

6. The Respondents have argued that the e-rickshaws, along with their integrated components, had been impounded for non-compliance with the Motor Vehicles Act, 1988 — particularly the absence of valid registrations and fitness certificates. They maintained that since these e-rickshaws were impounded as a complete unit, any release of parts, including the batteries, independently is impermissible. Recognizing the gravity and novelty of the issue, on 28^th October, 2024, this Court issued the following interim directions:

“W.P.(C) 12992/2024

3. Respondent No. 1 has filed their counter affidavit declining the Petitioners’ request for release of batteries of e-rickshaws seized by the Respondent. Referencing the order dated 13^th January, 2017 passed by this Court in 312/2017, leading to the seizure of the e- rickshaws, the Respondent has argued that the e-rickshaws had been seized on account of lack of requisite regis