In a recent ruling, the National Company Law Tribunal (NCLT), Bengaluru Bench, has declared Congress MLC Naseer Ahmed bankrupt after finding him liable as a personal guarantor for loans amounting to ₹1,454 crore extended to Scotts Garments Ltd. by a consortium of banks led by Canara Bank, State Bank of India, and IDBI Bank.
Appearing through counsel Akshay J. Simha, petitioner Ahmed argued that he had not executed any valid deed of guarantee in favour of the applicant banks, claiming the guarantee was issued to SBICAP Trustee Company Ltd. and not directly to the lenders.
He also alleged parallel recovery through proceedings before the Debt Recovery Tribunal (DRT) and questioned Canara Bank’s…