First judgment
Pooja Ramesh Singh v. Jammu and Kashmir Bank Ltd. & Anr.
- Case number
- Civil Appeal No. 11950 of 2025
- Citation
- 2026 INSC 668
- Court
- Supreme Court of India
- Decision
- July 2, 2026
- Provisions
- Section 7, Insolvency and Bankruptcy Code, 2016; Section 14, Insolvency and Bankruptcy Code, 2016; Sections 35 and 36, Advocates Act, 1961; Integrity of judicial reasoning and professional responsibility
- Question
- Whether NCLT and NCLAT orders that relied on nonexistent, wrongly cited, or falsely attributed precedents could remain legally valid, and what duties apply when AI-assisted legal research is used.
- Holding
- The Supreme Court held that reliance on fabricated or unverified authorities taints the adjudicatory process. AI may assist legal work, but advocates, judges, tribunals, and appellate bodies retain a mandatory human duty to verify every cited authority from an authentic source.
- Outcome
- The NCLT and NCLAT orders were set aside. The section 7 IBC application was restored to the NCLT for a fresh merits decision, preferably within two weeks, with status quo to continue meanwhile. The Court expressed no opinion on the underlying insolvency merits.