High Court Chief Justice Escapes Inquiry After Attempting to Influence NCLAT Ruling

A High Court Chief Justice who attempted to influence a National Company Law Appellate Tribunal (NCLAT) member in Chennai to rule favorably for a company has evaded an in-house investigation primarily due to his retirement.

However, this does not completely shield him from accountability. Chief Justice of India Surya Kant still maintains the authority to recommend filing a First Information Report (FIR) under the Prevention of Corruption Act against the retired judge.

Former Chief Justice of India BR Gavai had requested a report from NCLAT judicial member Justice Sharad Kumar Sharma, who had publicly disclosed in court that "one of the most revered members of the higher judiciary of this country" had approached him seeking a favorable ruling, leading Justice Sharma to recuse himself from the case.

By the time Justice Sharma submitted his detailed report, the High Court Chief Justice in question had already retired, making it impossible to initiate a formal in-house inquiry against him.

During Supreme Court proceedings on November 14, attorney Prashant Bhushan stated that according to his information, "the message came from the Chief Justice of a high court" to the judicial member of the company's appellate tribunal.

The Supreme Court subsequently instructed NCLAT chairperson Justice Ashok Bhushan to hear the matter in a bench under his leadership and resolve the dispute promptly. The Supreme Court also directed the interim resolution professional (IRP) appointed by the National Company Law Tribunal in Hyderabad to proceed with the insolvency dispute.

According to the bench, the judicial member had documented the incident in his order before recusing himself from the case, which was sufficient grounds for addressing the issue administratively.

The petition, filed by AS Met Corp Private Ltd, stems from proceedings before the NCLAT Chennai concerning the insolvency of KLSR Infratech Ltd.