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NCLAT Judge Opts Out Of Insolvency Case After Request For ‘Favourable Order’ From Someone In ‘Higher Judiciary’

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The disclosure was made by Justice Sharad Kumar Sharma, a judicial member of the NCLAT’s Chennai Bench, leading to his immediate recusal from an insolvency case

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Following the recusal, the insolvency appeal will now be reassigned to a different bench for a complete rehearing, ensuring that the legal process remains free from any appearance of bias. (Representational image)

Following the recusal, the insolvency appeal will now be reassigned to a different bench for a complete rehearing, ensuring that the legal process remains free from any appearance of bias. (Representational image)

The National Company Law Appellate Tribunal (NCLAT), in a striking and rare public disclosure, has revealed that one of its members received a request for a “favourable order” from a highly respected figure within the higher judiciary. The disclosure was made by Justice Sharad Kumar Sharma, a judicial member of the NCLAT’s Chennai Bench, leading to his immediate recusal from an insolvency case.

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The incident occurred on August 13, when Justice Sharma, alongside Technical Member Jatindranath Swain, was scheduled to pronounce judgment in an appeal concerning a Hyderabad-based company. Before delivering the verdict, Justice Sharma stated in open court that he had been approached by a “most revered member of the higher judiciary of this country” who had sought an order in favour of a particular party. The judge also reportedly showed recent call logs to the lawyers present in the courtroom.

In his order, Justice Sharma officially recorded his decision to recuse himself, writing, “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.”

This is not the first time Justice Sharma has taken a strong stance against external influence. In November 2024, he recused himself from another case after his own brother sent him WhatsApp messages seeking advice on a pending matter. In that instance, he reproduced the messages verbatim in his judicial order to underscore the importance of judicial independence and transparency.

Following the recusal, the insolvency appeal will now be reassigned to a different bench for a complete rehearing, ensuring that the legal process remains free from any appearance of bias.

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