Supreme Court agrees to Examine Plea Seeking Probe Into NCLAT Member's Disclosure of Higher Judge Trying to Influence Decision [Read Judgement]

In response to a shocking accusation made by a member of the National Company Law Appellate Tribunal (NCLAT), the Supreme Court has consented to review a plea for a comprehensive investigation. In a big case, the member alleges that a "higher judge" tried to influence their ruling by applying pressure.

The petitioner is an operational creditor of M/s. KLSR Infratech Ltd. (respondent no.5-company). Since the company allegedly failed to make due payments, the petitioner filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) before the National Company Law Tribunal, Hyderabad Bench (“NCLT Hyderabad”). The said insolvency application was admitted, and directions were issued for the initiation of Corporate Insolvency Resolution Proceedings (“CIRP”) under IBC.

Challenging that order, respondent no.4, who is one of the suspended directors of respondent no.5-company, filed a statutory appeal bearing Company Appeal (AT) (CH) (Ins) No.210/2023 before the National Company Law Appellate Tribunal (“NCLAT”). That appeal came up for hearing before NCLAT, Chennai Bench on 18.07.2023, when notice was issued and further proceedings for CIRP before NCLT Hyderabad were stayed. The Company Appeal was thereafter taken up by NCLAT, Chennai Bench for final adjudication.

The bench heard the matter on 18.06.2025 and reserved the judgment. The aforementioned interim order was allowed to continue. Meanwhile, some unfortunate incident is said to have taken place, which prompted the NCLAT, Chennai Bench to pass order dated 13.08.2025. That order is the foundation of the reliefs and directions sought in the instant writ petition.

The court comprising Justice Surya Kant and Justice Joymalya Bagchi requested the Chairperson of the NCLAT to list the said appeal before the bench presided over by His Lordship and decide the same, after issuing notice and giving adequate hearing to the contesting parties, at the earliest.

While the petitioner before us has taken a fair stand to extend full cooperation for an early adjudication of the appeal, we direct respondents nos.4 and 5 to, likewise, ensure that no impediment is caused in the expeditious disposal of the appeal. The aforesaid respondents as well as their counsel will extend full cooperation to the bench of the Hon’ble Chairperson for expeditious and timely adjudication of the said appeal.

The Principal Bench of the NCLAT is also requested to pass appropriate orders on the application bearing No.1166/2023, seeking vacation of stay and consider whether it is appropriate to direct the Interim Resolution Professional (“IRP”) appointed by NCLT, Hyderabad to manage the affairs of respondent no.5-Company.

Instead of being involved in the substantive dispute of the initial NCLAT case, the supreme court is indicating that it intends to address the systematic problem of judicial involvement.

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