New Delhi, July 2 -- The Supreme Court of India on Thursday has set aside orders passed by two insolvency tribunals after finding that the tribunal relied on fake and non-existent judicial precedents generated using artificial intelligence (AI) in a landmark judgment involving Essel Infraprojects Ltd.

The apex court quashed the orders of both the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) that had admitted the firm into corporate insolvency, remanding the matter back to the NCLT for a fresh, fact-based adjudication.

The controversy caught the court's eye when senior advocate Madhavi Divan, representing Essel Infraprojects Ltd, pointed out that several judgements that the NCLT had relied ...