Bengaluru, June 12 (IANS) The National Company Law Tribunal (NCLT), Bengaluru Bench, has declared Congress MLC Naseer Ahmed bankrupt in connection with the default of loans amounting to Rs 1,454.71 crore owed by Bengaluru-based M/s Scotts Garments Limited, for which he had stood as a personal guarantor.
The order has cast uncertainty over Ahmed’s continuation as a member of the Karnataka Legislative Council, with legal experts indicating that the bankruptcy declaration could attract disqualification proceedings under the applicable provisions of law.
It may be noted that under Section 140 of the Insolvency and Bankruptcy Code (IBC) and Article 191(1)(c) of the Constitution of India, the bankruptcy declaration could expose Ahmed to…