NEW DELHI: The Supreme Court has ordered an inquiry into serious claims made by a judicial member of the National Company Law Appellate Tribunal (NCLAT), who alleged that he was "approached by one of the most revered members of the higher judiciary" seeking a favourable order in a pending case.
The apex court initiated the probe after learning of the matter on Tuesday. According to sources in the Supreme Court registry, the inquiry will be conducted by the Court’s Secretary General. The future course of action will be determined based on the findings of this inquiry.
Justice Sharad Kumar Sharma, the judicial member of the Chennai bench of the NCLAT, made the startling allegation while recusing himself from hearing the case in question. His move has been described as unprecedented, given the nature of his claims.
“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,” stated the tribunal’s official order dated August 13, a copy of which was accessed by TNIE.
The order was passed by a two-member NCLAT bench headed by Justice Sharma, who formally recused himself from the matter, stating: “I recuse to hear the matter. Place before the Chairperson for nomination of an appropriate bench.”
The other member of the bench was Jatindranath Swain, a technical member of the Chennai-based appellate tribunal.
The case in question pertains to an appeal filed by A S Reddy, suspended director of Hyderabad-based KLSR Infratech, which is undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC).
The matter had been listed for orders on August 13 before the Chennai bench, following the completion of hearings. Judgment in the case had been reserved on June 18, 2025, with both parties granted seven days to file written submissions, if any.
The Supreme Court’s decision to launch an inquiry marks a significant moment, underlining the judiciary’s stance on maintaining institutional integrity and impartiality.