SC orders probe after NCLAT judge alleges ‘higher judiciary’ member tried to influence case outcome
The inquiry will examine whether the alleged call was made by a High Court or Supreme Court judge.
The Supreme Court has ordered an inquiry into allegations that a member of the higher judiciary contacted Justice Sharad Kumar Sharma of the National Company Law Appellate Tribunal in Chennai to seek a favourable order in an insolvency case, Bar and Bench reported on Wednesday.
The inquiry will be conducted by the secretary general of the Supreme Court and will probe whether the call was indeed made by a High Court or Supreme Court judge, and, if so, by whom, the legal news outlet reported.
Sharma had recused himself from a case earlier this month after claiming that “one of the most revered members of the higher judiciary of this country” had tried to influence its outcome.
In an order on August 13, Sharma said that the tribunal was “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,” he had said.
The case pertained to insolvency proceedings against KLSR Infratech Limited, a Hyderabad-based real estate company.
The company had filed a petition in 2023 challenging an order of the Hyderabad bench of the National Company Law Tribunal, which allowed a creditor, AS Met Corp Private Limited, to initiate the corporate insolvency resolution process against it.
The petition had been listed before a two-member coram at the National Company Law Appellate Tribunal in Chennai. However, after Sharma’s recusal, the matter is expected to be placed before the chairperson for the setting up of a fresh coram.
Sharma has recused himself in other cases as well, citing attempts to influence the adjudication.
On June 11, the judge claimed that a respondent had attempted to approach him for a favourable judgement while he was hearing appeals involving Shri Ramalinga Mills and related companies, Bar and Bench reported. He recused himself from the case.
In November 2024, Sharma recused himself in a matter linked to Jeppiar Cements after recording in an order that he had been approached with a request to reserve the case for orders.