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Supreme Court Orders Inquiry After NCLAT Judge Alleges Pressure in KLSR Insolvency Appeal

The Chennai bench recorded the alleged approach in an August 13 order, prompting recusal and reassignment of the case.

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Overview

  • Justice Sharad Kumar Sharma of the NCLAT recused himself on August 13 after stating in open court that a revered higher judiciary member sought a favorable order.
  • He showed recent call logs or a message on his phone to lawyers, but the content and the individual's identity were not disclosed.
  • The case concerns KLSR Infratech’s appeal against an NCLT Hyderabad order that admitted creditor AS Met Corp’s plea to initiate insolvency proceedings.
  • Hearings concluded on June 18 with judgment reserved, and the matter will now be placed before the NCLAT chairperson for constitution of a fresh bench and a rehearing.
  • Justice Sharma has previously stepped aside in matters involving Byju’s, Jeppiar Cements, and Shri Ramalinga Mills, citing conflicts or attempted influence.