Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 855

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 855
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Item 1. Legal Proceedings

Except as described below, we are not currently subject to any material
claims, lawsuits, arbitration proceedings, administrative actions, government investigations and other legal and regulatory disputes and
proceedings (collectively, “Legal Proceedings”) and we are not subject to any pending Legal Proceedings in any of the jurisdictions
where we operate other than in India.

We may become subject to
other Legal Proceedings over time or from time to time, in the ordinary course of our business and as our business continues to grow and
expand over time. Becoming involved with Legal Proceedings, regardless of the outcome, may result in substantial cost and diversion of
our resources, including our management’s time and attention.

As a result of our business
operations in India, we are regularly subject to legal proceedings, many of which are de minimis in nature and amount and the majority
of which relate to local tax matters. Many of these tax and vehicle accident-related Legal Proceedings are pending before various forums
in India and involve localized practices and interpretations of regulatory matters that make the ultimate outcomes or resolution of these
Legal Proceedings inherently uncertain and difficult to predict. Management’s views and estimates related to these matters may change
in the future, as new events and circumstances arise and the matters continue to develop.

Litigation with Former
Employee

In February 2023, a former
employee of Zoomcar India instituted a suit before the City Civil and Sessions Judge at Mayo Hall, Bengaluru against Zoomcar India, Zoomcar
and IOAC challenging his termination, claiming approximately $400,000 in damages, and claiming that 100,000 options to purchase shares
of Zoomcar have vested. On March 3, 2023, the City Civil and Sessions Judge at Mayo Hall, Bengaluru, issued an interim injunction to restrain
each of Zoomcar and IOAC from “alienating or dealing” the 100,000 shares, (without giving effect to the reverse splits and
the conversion ratio for the business combination), of Zoomcar claimed by the former employee while the suit is pending. Zoomcar believes
that such claims are baseless and is attempting to have the interim order vacated. In addition, Zoomcar India filed an application in
the former employee’s suit, seeking that IOAC be deleted from the array of parties in the suit, inter alia since (i) IOAC is neither
a necessary nor a proper party to the suit; (ii) no reliefs have been sought by the former employee from