NCLT Member Refuses to Hear Petition after being Approached by "Most Revered member of Higher Judiciary” to Favour a Party [Read Order]
NCLAT member Justice Sharad Kumar Sharma recused himself from an insolvency case after revealing he was approached by a senior member of the higher judiciary seeking a favourable order
In a recent order, the Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) has recorded that one of its members was approached by a senior figure from the higher judiciary seeking a favourable order in an insolvency case.
The matter came up on August 13, 2025, before a two-member bench of the NCLAT consisting of Justice Sharad Kumar Sharma, who serves as a Judicial Member, and Jatindranath Swain, the Technical Member.
The case involved an appeal filed by Attluru Sreenivasulu Reddy, the suspended director of KLSR Infratech Limited, against an order that admitted the Hyderabad-based company into the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code.
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When the appeal was listed for orders, Justice Sharma made a startling disclosure. He stated in open court that he had been contacted by what he described as “one of the most revered members of the higher judiciary of this country” who had requested that the tribunal pass an order in favour of a particular party.
Justice Sharma said that in view of this approach, he would recuse himself and withdraw from hearing the matter. The bench then directed that the case be placed before the Chairperson of the NCLAT for allocation to a different bench.
The order dated August 13 records this disclosure in clear terms. It 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.”
Sources indicated that Justice Sharma also referred to a message he had received on his mobile phone and that he showed this message to the lawyers present in court before recusing. However, the actual contents of the message were not disclosed in court and remain unknown.
This is not the first time Justice Sharma has stepped aside after reporting attempts to influence his adjudication. In June 2025, while hearing appeals involving Shri Ramalinga Mills and related companies, he recused himself after recording that a party had tried to approach him for a favourable judgment.
By placing his statement on record and refusing to hear the matter, Justice Sharma has attempted to ensure that the proceedings remain free from any appearance of bias. The appeal will now be placed before the Chairperson of the NCLAT, who will nominate a new bench to hear the case afresh.
The identity of the senior judicial figure who allegedly attempted to influence the outcome has not been revealed. The disclosure nonetheless marks one of the rare occasions where an NCLAT member has openly recorded such an approach in a judicial order.
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