NCLAT judge steps aside from case, claims ‘higher judiciary’ member attempted to influence outcome

A judicial member of the National Company Law Appellate Tribunal recused himself from a case earlier this month after claiming that “one of the most revered members of the higher judiciary of this country” had tried to influence its outcome.

In an order on August 13, Justice Sharad Kumar Sharma said that the tribunal was “anguished to observe, that one of us, member (judicial), has been approached by one of the most revered members of the higher judiciary of this country for seeking an order in favour of a particular party”.

“Hence, I recuse to hear the matter,” Sharma added.

The case pertained to insolvency proceedings against KLSR Infratech Limited, a Hyderabad-based real estate company, The Indian Express reported.

The company had filed a petition in 2023 against an order issued by the Hyderabad bench of the National Company Law Tribunal, which allowed a creditor, AS Met Corp Private Limited, to initiate the Corporate Insolvency Resolution Process against it.

The petition had been listed before a two-member coram at the National Company Law Appellate Tribunal in Chennai, Bar and Bench reported. However, after Sharma’s recusal, the matter is expected to be placed before the chairperson for the constitution of a fresh coram.

Sharma has recused himself in other cases as well, citing attempts to influence the adjudication.

On June 11, the judge claimed that a respondent had attempted to approach him for a favourable judgement while hearing appeals arising out of disputes involving Shri Ramalinga Mills and related companies, according to Bar and Bench. He had recused himself from this case.

In November 2024, Sharma recused himself in a matter linked to Jeppiar Cements after recording in an order that he had been approached with a request to reserve the case for orders.