Justice Sharad Kumar Sharma of NCLAT Chennai said he was approached by “one of the most revered members of the higher judiciary” for a favourable order. He recused himself, marking yet another instance where he stepped aside due to outside influence.
Thank you for reading this post, don't forget to subscribe!
TAMIL NADU: The National Company Law Appellate Tribunal (NCLAT) at Chennai recently faced a serious situation.
Its judicial member, Justice Sharad Kumar Sharma, openly stated in an order that he was contacted by “one of the most revered members of the higher judiciary” who tried to influence him to pass a favourable order in an insolvency case.
On August 13, Justice Sharma recused himself from hearing the matter, saying he could not continue after being approached. The case was being heard by a two-member bench, also including Technical Member Jatindranath Swain.
After the disclosure, the bench directed that the file be placed before the NCLAT chairperson so another bench could be nominated.
The official order noted:
“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.”
The matter relates to an appeal filed in 2023 against an order that admitted a Hyderabad-based company into the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). The appeal had reached the stage of final orders before Justice Sharma stepped aside. Now, the case will be re-assigned to a new coram by the NCLAT chairperson.
This is not the first time Justice Sharma has taken such a step. On June 11, while hearing a group of appeals linked to Shri Ramalinga Mills and related companies, he had noted in open court that one of the respondents had tried to approach him for a favourable judgment. He recused from that matter as well and sent the case back for fresh allocation.
The order dated November 18, 2024, read:
“Since I have been approached by my real brother who has dropped in the following messages…With a very sorry note, I refuse to hear this appeal. Let the matter be placed before the Hon’ble Chairperson for the nomination of another bench.”
That matter too was before Justice Sharma and Member (Technical) Swain. It was based on a plea by Jeppiar Cements’ former director to set aside the insolvency process against the company, claiming that all dues of the financial creditors had already been cleared.
The case had been pending before the Chennai Bench since October 2022.
Earlier in 2024, Justice Sharma also recused himself from hearing cases related to the CIRP of Byju’s, since that proceeding was initiated by the Board of Control for Cricket in India (BCCI), an organization for whom he had previously appeared as a lawyer.
CASE TITLE:
Attluru Sreenivasulu Reddy Suspended Director of M/s. KLSR Infratech Ltd vs M/s. AS Met Corp Pvt. Ltd. & Anr.
Would You Like Assistance In Drafting A Legal Notice Or Complaint?
CLICK HERE
Click Here to Read Our Reports on NCLAT
Click Here to Read Our Reports on Justice Sharad Kumar Sharma of NCLAT
FOLLOW US ON YOUTUBE FOR MORE LEGAL UPDATES
