NCLAT Judge Recuses From Case Saying He Was Approached By 'Higher Judiciary Member' To Favour A Party

The judicial member of National Company Law Appellate Tribunal, Chennai Bench, Justice Sharad Kumar Sharma, recused from hearing an insolvency matter, after observing that he was approached by  "one of the most revered members of the higher judiciary" seeking an order favouring a particular party. 

The August 13 order passed by a bench of judicial member Justice Sharad Kumar Sharma and technical member Jatindranath Swain states:

"We are 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. Place before the Hon'ble chairperson for nomination of an appropriate bench". 

The court passed the order in a company appeal filed by the Appellant/Corporate Debtor–Attluru Sreenivasulu Reddy suspended director of KLSR Infratech Ltd, challenging a July 14, 2023 order passed company petition wherein the corporate debtor was admitted to  Section 9 Corporate Insolvency Resolution Proceedings under the Insolvency and Bankruptcy Code. 

On July 18, 2023 a coordinate NCLAT bench had issued notice to the respondents had stayed further proceedings in the matter. 

Notably, this is not the first incident wherein Justice Sharma has observed in his orders mentioning that he was approached by parties for favourable orders. 

In June last year, Justice Sharma recused from another matter, saying that his conscience didn't allow him to continue hearing the case after the concerned party had approached him.

Thereafter in November 2024, Justice Sharma recused from another matter after his brother messaged him requesting favourable orders in the case. Further, in the recusal order, the judge extracted the entire message verbatim.

Case title: Mr. Attluru Sreenivasulu Reddy Suspended Director of M/s. KLSR Infratech Ltd. v/s  M/s. AS Met Corp Pvt. Ltd. & Anr

IA No. 487/2025 in Company Appeal (AT) (CH) (Ins) No.210/2023

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