New Delhi, Aug. 26 -- In an unusual turn of events, a judicial member of the National Company Law Appellate Tribunal (NCLAT) has withdrawn from a case after disclosing that he was contacted by a senior figure from the higher judiciary with a request to deliver a ruling in favour of one of the parties.

The incident was recorded in a two-paragraph order issued by the Chennai bench of the tribunal on August 13. Justice Sharad Kumar Sharma, who was presiding over the matter along with Technical Member Jatindranath Swain, announced his decision to step aside.

"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 order stated. The bench further directed that the appeal be placed before the NCLAT chairperson for reallocation to another bench.

The case involves an appeal by A S Reddy, the suspended director of Hyderabad-based KLSR Infratech, which is undergoing a Corporate Insolvency Resolution Process (CIRP). Proceedings were initiated by the Hyderabad bench of the National Company Law Tribunal (NCLT) last year following a petition from creditor AS Met Corp Pvt Ltd. The tribunal had suspended the company's board and appointed an interim resolution professional.

Reddy later approached NCLAT, challenging that order. After hearings concluded on June 18, 2025, the matter was reserved for judgment. Both parties were granted a week to file written submissions. The case was listed for pronouncement of orders on August 13 before the Chennai bench when Justice Sharma disclosed his recusal.

Justice Sharma, who retired as a judge of the Uttarakhand High Court in December 2023 and joined NCLAT in February 2024, has on earlier occasions also opted out of hearings. He recused himself from cases linked to the insolvency of ed-tech company Byju's, citing his past legal representation of the Board of Control for Cricket in India (BCCI). He has also withdrawn from proceedings concerning Jeppiaar Cements and Ramalinga Mills.

The development has drawn attention, as such disclosures involving alleged approaches from the higher judiciary are seldom recorded in tribunal orders. The matter will now await reassignment by the NCLAT chairperson.

Published by HT Digital Content Services with permission from Millennium Post.