Supreme Court Launches Inquiry into Allegations of Judicial Influence

Inquiry Ordered by Supreme Court

The Supreme Court has initiated an investigation into claims that a member of the higher judiciary reached out to Justice Sharad Kumar Sharma of the National Company Law Appellate Tribunal (NCLAT) in Chennai, attempting to sway a decision in an insolvency matter.

This inquiry will be overseen by the Supreme Court's secretary general, who will determine whether the call originated from a High Court or Supreme Court judge, and identify the individual involved.

Earlier this month, Justice Sharma stepped aside from a case, alleging that a highly respected member of the judiciary sought to influence its outcome.

In a statement dated August 13, Sharma expressed his distress, noting that a judicial member had been approached for a favorable ruling for a specific party.

Consequently, he announced his decision to recuse himself from the case.

The case in question involves insolvency proceedings against KLSR Infratech Limited, a real estate firm based in Hyderabad.

The company had submitted a petition in 2023 contesting a ruling from the Hyderabad bench of the National Company Law Tribunal, which permitted a creditor, AS Met Corp Private Limited, to initiate corporate insolvency proceedings against it.

This petition was scheduled for hearing before a two-member panel at the NCLAT in Chennai. However, following Sharma's recusal, the case will likely be reassigned to the chairperson for the formation of a new panel.

Justice Sharma has previously recused himself from other cases, citing similar attempts to influence judicial decisions.

On June 11, he reported that a party had tried to contact him for a favorable ruling while he was deliberating appeals involving Shri Ramalinga Mills and associated companies, leading to his recusal from that case.

In November 2024, he also recused himself from a case related to Jeppiar Cements, noting that he had been approached with a request to expedite the case's resolution.