India, July 3 -- The Supreme Court on Thursday set aside the orders of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) in an insolvency case, after finding that the rulings were based on fake, non-existent or AI-generated precedents.

A bench of Justices PS Narasimha and Alok Aradhe remanded the matter to the NCLT for fresh consideration, directing that it proceed uninfluenced by the 'hallucinated' citations. Hallucination is a term used in tech parlance to refer to information fabricated by artificial intelligence systems.

The court on Thursday held that a judicial decision founded on non-existent precedents cannot stand, and that any ruling tainted by even "an iota" of such material is "...