NCLAT judge alleges pressure from ‘revered’ higher judiciary member, recuses from insolvency case

In an unusual development, Justice Sharad Kumar Sharma, a judicial member of the National Company Law Appellate Tribunal (NCLAT), has recused himself from an insolvency case citing an alleged approach by “one of the most revered members of the higher judiciary” seeking a favourable order.

New Delhi: In a rare incident, a judicial member of the National Company Law Appellate Tribunal (NCLAT) has alleged being “approached by one of the most revered members of the higher judiciary”, seeking an order in favour of a party, and has recused himself from hearing the matter.

The Chennai-based bench of the appellate tribunal has even recorded the incidence in a two-paragraph order passed on August 13.

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Justice Sharad Kumar Sharma, the judicial member of the NCLAT, has recused himself from hearing the matter.

“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 bench said in the order.

It requested that the matter be placed “before the Hon’ble 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 A S Reddy, suspended director of Hyderabad-based KLSR Infratech, which is facing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC).

The judgment in the matter was reserved by the insolvency appellate tribunal on June 18, 2025 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, 2025 before the two-member Chennai bench comprising Justice Sharma and Swain.

However, when the matter was called, Justice Sharma recused from the matter and mentioned the reason in a two-para order passed on that day.

CIRP was initiated by the Hyderabad bench of the National Company Law Tribunal (NCLT) against KLSR Infratech over the plea filed by its creditor AS Met Corp Pvt Ltd on July 14, 2023. It had appointed an interim resolution professional after suspending the board of the realty firm.

The order was challenged by A S Reddy before the NCLAT.

Justice Sharma, who retired from the High Court of Uttarakhand on December 31, 2023 and then joined NCLAT as a judicial member on February 19, 2024, has earlier recused himself in several cases.

He had also recused himself from hearing matters pertaining to the insolvency of ed-tech firm Byju’s as he had previously appeared as a lawyer for the Board of Control for Cricket in India (BCCI).

Earlier, he had also recused himself from hearing matters related to Jeppiaar Cements and Ramalinga Mills.