NCLAT Chennai Judicial Member Recuses After Disclosure of Approach by ‘Higher Judiciary’ Seeking Favourable Order
Pranav B Prem
The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, witnessed an unusual development on August 13, 2025, when its Judicial Member, Justice Sharad Kumar Sharma, recused from hearing a matter after disclosing that he was approached by “one of the most revered members of the higher judiciary” seeking a favourable order.
The Bench comprising Justice Sharad Kumar Sharma (Judicial Member) and Jatindranath Swain (Technical Member) was hearing Company Appeal (AT) (CH) (Ins) No.210/2023 filed by Mr. Attluru Sreenivasulu Reddy, suspended director of KLSR Infratech Ltd. The appeal challenged a July 14, 2023 order passed by the National Company Law Tribunal admitting the corporate debtor into Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code.
The Appellant, represented by Advocate Mayan H. Jain, had sought to assail the admission order passed against KLSR Infratech Ltd. The Respondents were represented by Advocates R. Venkatavaradan and Chandramouli Prabhakar. In its brief order, the Bench recorded: “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. Place before the Hon’ble chairperson for nomination of an appropriate bench.”
With this observation, Justice Sharma directed that the matter be placed before the NCLAT Chairperson for constitution of another Bench to hear the case.
This was not the first time Justice Sharma stepped aside from hearing a matter citing external influence or conflict. In June 2024, he recused from a different case, stating that his conscience did not allow him to proceed after being approached by a concerned party. Later, in November 2024, he again recused himself after disclosing that his own brother had messaged him requesting a favourable order, even reproducing the message verbatim in his order. Notably, in the present case as well, the Chennai Bench order reflects Justice Sharma’s stance of not proceeding further once such an attempt to influence judicial decision-making was brought to his notice.
The appeal filed by the suspended director of KLSR Infratech Ltd. could not be taken up for consideration on merits, as Justice Sharad Kumar Sharma recused from the proceedings. The matter has now been directed to be placed before the NCLAT Chairperson for reallocation to an appropriate Bench.
Appearance
For Appellant: Mr. Mayan H. Jain, Advocate
For Respondents: Mr. R. Venkatavaradan, Mr. Chandramouli Prabhakar, Advocate for R2
Cause Title: Mr. Attluru Sreenivasulu Reddy Suspended Director of M/s. KLSR Infratech Ltd. V. M/s. AS Met Corp Pvt. Ltd. & Anr
Case No: IA No. 487/2025 in Company Appeal (AT) (CH) (Ins) No.210/2023
Coram: Justice Sharad Kumar Sharma [Judicial Member], Jatindranath Swain [Technical Member]
