Was approached to favour a party: Tribunal judge opts out of insolvency case; 'We are anguished'

NEW DELHI: The National Company Law Appellate Tribunal at Chennai said Justice Sharad Kumar Sharma recused himself from hearing one particular case as he was contacted for a favourable order. “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 NCLAT order of August 13 said.

According to Bar & Bench, Justice Sharma referred to a message that he had received on his mobile phone and showed it to the lawyers involved in the case. The message was not disclosed in court.

The case involves the insolvency proceedings against Hyderabad-based real estate company, KLSR Infratech Ltd . The company had filed an appeal against a decision by the Hyderabad bench of the NCLT that allowed AS Met Corp Pvt Ltd to initiate the insolvency process against it.

Earlier, too, Justice Sharma recused himself, citing attempts to influence adjudication. In June this year, he said he was approached by one of the respondents in a case of appeals out of disputes involving Shri Ramalinga Mills and related companies. In November 2024, Justice Sharma recused himself from a different matter involving Jeppiar Cements after recording in an order that he had been approached by his brother with a request to reserve the case for orders.

Earlier in 2024, Justice Sharma recused from hearing the insolvency matters of Byju's as it was initiated on a plea filed by Board of Control for Cricket in India (BCCI), for whom he had previously appeared as a lawyer in many cases.