New Delhi: National Company Law Appellate Tribunal (NCLAT) judicial member Justice Sharad Kumar Sharma has recused himself from hearing the case on August 13 after revealing that he was contacted for a favourable order.

The NCLAT at Chennai has put it on record that it was approached by “one of the most revered members of the higher judiciary” who sought a favourable order for a party in an insolvency matter [Attluru Sreenivasulu Reddy Suspended Director of M/s. KLSR Infratech Ltd Vs M/s. AS Met Corp Pvt. Ltd. & Anr.], reported Bar and Bench.

Expressing its anguish, the bench, also comprising Member (Technical) Jatindranath Swain has directed that the matter be placed before the NCLAT chairperson for the purpose of nominating another bench to hear the case

“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," said August 13 NCLAT order.

Citing sources, Bar & Bench reported that Justice Sharma on August 13 had referred to a message he received on his mobile phone. Thereafter, he showed it to the lawyers involved in the case before stepping away. The contents of the message were not disclosed in court and remain unknown.

The proceedings in the case relate to an appeal filed in 2023 challenging an order admitting a Hyderabad-based company into the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC).

Earlier, the appeal was listed before a two-member coram at the NCLAT Chennai and was listed for orders.

With Justice Sharma's recusal, it is expected that the matter will now to be placed before the chairperson for constitution of a fresh coram to hear the case.

The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.