In a rare disclosure, the National Company Law Appellate Tribunal (NCLAT) in Chennai has recorded that one of its members was approached by a former senior member of the higher judiciary with a request to pass a favourable order in an insolvency dispute.

Justice Sharad Kumar Sharma, Member (Judicial) of the NCLAT, recused himself from the matter on August 13 after informing open court that he had received a message seeking favourable consideration for one of the parties. 

The bench, which also comprised Member (Technical) Jatindranath Swain, expressed strong displeasure over the development and directed that the case be placed before the NCLAT Chairperson for reallocation.

“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 tribunal’s order stated.

According to sources, Justice Sharma even displayed the message on his phone to the lawyers before stepping aside, though the exact contents were not revealed on record.

The case in question involves an appeal filed in 2023 against the initiation of the Corporate Insolvency Resolution Process (CIRP) against a Hyderabad-based company under the Insolvency and Bankruptcy Code (IBC). With the recusal, the matter will now be listed before a newly constituted bench.

Pattern of recusals

This is not the first instance where Justice Sharma has stepped away from a case citing attempts to influence him.

• June 2024: While hearing a set of appeals concerning Shri Ramalinga Mills and group companies, he recorded that a party had attempted to approach him for a favourable ruling. He recused himself and referred the matter back to the Chairperson.
• November 2024: In a case involving Jeppiar Cements, he disclosed that his own brother had sent messages urging him to keep the matter reserved for orders. Calling it inappropriate, he withdrew from the case and requested reallocation.
• Early 2024: Justice Sharma also opted out of hearing matters related to the CIRP of Byju’s, as the case was initiated by the Board of Control for Cricket in India (BCCI), a client he had represented as a lawyer in the past.

The current proceedings

The latest controversy stems from the matter of Attluru Sreenivasulu Reddy (Suspended Director of KLSR Infratech Ltd) v. AS Met Corp Pvt Ltd. & Anr. The appeal challenges the insolvency proceedings against KLSR Infratech.

With Justice Sharma stepping aside, the case is expected to be placed before a different bench for adjudication.

Case Details

Case Title: Mr. Attluru Sreenivasulu Reddy Versus M/s. AS Met Corp Pvt. Ltd. & Anr. 

Case No.: IA No. 487/2025

Date: 13.08.2025