Overview

• On August 13, NCLAT Judicial Member Justice Sharad Kumar Sharma disclosed in open court that he was approached for a favourable order and showed recent call logs before recusing himself.
• The Chennai bench directed the registry to place the case before the tribunal chairperson for nomination of a new bench, with the appeal to be heard afresh.
• The Supreme Court has ordered an inquiry into the disclosure, with Times of India reporting that the apex court’s secretary general has been tasked with identifying who attempted to influence the tribunal member.
• The appeal challenges a 2023 Hyderabad NCLT order admitting KLSR Infratech into the Corporate Insolvency Resolution Process on a creditor petition by AS Met Corp and appointing an interim resolution professional.
• Hearings at NCLAT concluded on June 18 with judgment reserved, but the recusal has delayed a decision; Justice Sharma has previously stepped aside in matters involving Byju’s, Jeppiar Cements and Ramalinga Mills citing attempted external influence or conflicts.