NCLAT Member Alleges Favor Request by Judge, Steps Aside

Quick Summary

• Incident: Justice Sharad Kumar Sharma, a judicial member of the National Company Law Appellate Tribunal (NCLAT), recused himself from hearing a case after alleging that he had been approached by “one of the most revered members of the higher judiciary” to favor a particular party.
• Order Details: On August 13,2025,the Chennai-based appellate bench recorded Justice Sharma’s statement in a two-paragraph order and requested that the matter be reassigned to another appropriate bench.
• Case Context: The case involves an appeal filed by A S Reddy, suspended director of KLSR Infratech, undergoing Corporate Insolvency Resolution Process (CIRP) initiated by its creditor AS Met Corp Pvt Ltd on July 14, 2023.
• Related History:

– Justice Sharma joined NCLAT as judicial member after retiring from Uttarakhand High Court on December 31, 2023.
– He has previously recused himself from multiple cases citing potential conflicts or past connections, including matters involving Byju’s insolvency and other firms like Jeppiaar Cements and Ramalinga Mills.

Indian Opinion Analysis

The decision by Justice Sharad Kumar Sharma to publicize alleged external influence highlights important concerns about judicial integrity in India’s legal system. While recusals are not uncommon for judges citing conflicts or ethical considerations-especially with prior affiliations-the explicit reference to interference raises critical questions about independence within higher judiciary. Such concerns may call for scrutiny into procedural safeguards ensuring impartiality at all levels.

For India’s corporate legal framework and governance under Insolvency and Bankruptcy Code (IBC), this rare event also underscores challenges in handling high-stakes cases involving CIRPs faced by firms like KLSR Infratech. Clarity remains vital as stakeholders navigate disputes over financial recovery plans during insolvencies. This advancement warrants attention both for preserving trust in judiciary processes and as part of India’s broader commitment toward robust institutional frameworks.

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