Parties Approaching Judges Becoming Regular Practice In NCLAT: Judicial Member Of Chennai Bench Recuses From Hearing Case
Justice Sharad Kumar Sharma, Judicial Member of the National Company Law Tribunal at Chennai recently recused from hearing a case after the parties to the case approached him for favorable orders. Justice Sharma thus directed the Registry to place the matter before the Chairperson for nominating another bench in which he was not a part. “List before another Bench of which one of...
Justice Sharad Kumar Sharma, Judicial Member of the National Company Law Tribunal at Chennai recently recused from hearing a case after the parties to the case approached him for favorable orders.
Justice Sharma thus directed the Registry to place the matter before the Chairperson for nominating another bench in which he was not a part.
“List before another Bench of which one of us [Judicial Member Justice Sharad Kumar Sharma] is not a Member. The Registry is directed to place the matter before the Hon'ble Chairperson for nomination of the Bench”, the order read.
When the matter was taken up on Thursday (6th June 2024), Justice Sharma recused himself from the case and said in open court that his conscience didn't allow him to continue hearing the case after the concerned party approached him.
“I can't hear the matter when my conscience is not allowing me since someone approached me,” he said in court.
Adding that it had become a regular practice in NCLAT for parties to approach the judges, Justice Sharma said that if the same happened in the High Court, he would have sent the concerned person to jail. Justice Sharma also remarked that the parties would have approached the judges with the knowledge of the counsel and that public should not have a feeling that the judges were approachable.
“If I was in the High Court, I would have sent the concerned person to jail. No client will approach the judge without the consent of their counsel. The public shouldn't have the feeling that we are approachable,” he said.
Following Justice Sharma's recusal, a different bench will now take up the matter.
Background
The appeal follows from an order of the National Company Law Tribunal, Hyderabad dated May 9th, 2024, wherein the NCLT held the appellant Ravi Kiran Saladi Konda (Deputy Traffic Manager at New Mangalore Port Authority) and Mr Sriman Nayan Mishra (Senior Assistant Traffic Manager) guilty for contempt of court for disobeying the directions of the Liquidator and sentenced them to simple imprisonment of one month and a fine of Rs. 1000/- each.
The corporate debtor Lanco Babandh Power Limited had imported goods/items/machinery between July 2011 and April 2016 for setting up a thermal power plant in Khadagprasad, MOtagan District, Odisha. However, the goods could not be released since the Corporate Dentor failed to furnish the required documents. The Corporate Debtor was later put under CIRP.
The assets of the Corporate Dentor, including the imported goods were purchased by M/s Jindal Steels and Power Limited. Jindal however did not pay the balance sale consideration as the goods were still in the custody of the port authorities.
Though the Liquidator had ordered for the release of the goods, Konda and Mishra refused to comply. When an IA was filed in the NCLT ordered the authorities to release the goods. Despite this, the goods were not released.
The NCLT noted that the parties had intentionally tried to undermine the administration of justice which could not be disregarded. The NCLT observed that there could not be any laxity in these situations as it would make the orders of the NCLT a subject of mockery. The NCLT added that no one had the authority to conduct themselves in a manner that would demean and disgrace the majesty of justice that was dispensed by the court of law.
Case Title: Mr. Ravi Kiran Saladi Konda & Anr v. Mr. Sanjay Gupta, Liquidator-LancoBabandh Power Limited
Case No: Comp App (AT) (CH) (Ins) No. 178/2024