The Supreme Court on Wednesday ordered an inquiry into the claims of a judicial member of the National Company Law Appellate Tribunal (NCLAT) of being “approached by one of the most revered members of the higher judiciary”. The inquiry will be conducted by the court’s Secretary General.
Justice Sharad Kumar Sharma, the judicial member of the Chennai-based NCLAT, alleged being approached by a member of higher judiciary for a favourable order in a case pending before him.
He recused himself from hearing the matter and recorded the incident in a two-paragraph order passed on August 13. “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 (sic),” the NCLAT order said.
The tribunal then requested the matter to be placed before the “Chairperson for nomination of an appropriate bench” for hearing. The two-member bench comprised Justice Sharma and Technical Member Jatindranath Swain.
The bench was hearing an appeal filed by AS Reddy, suspended director of Hyderabad-based KLSR Infratech, which is facing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code.
The judgment in the matter was reserved by the insolvency appellate tribunal on June 18 after completion of hearing. It also granted seven days time to both parties to file written submissions, if any. The matter was listed for orders on August 13 before the two-member Chennai bench comprising Justice Sharma and Swain.
CIRP was initiated by the Hyderabad bench of the NCLT against KLSR Infratech over the plea filed by its creditor AS Met Corp Pvt Ltd on July 14, 2023.