The underlying debt involves a 200 crore facility from Jammu and Kashmir Bank to Pan India Utilities Distribution Company Limited, secured by a corporate guarantee from Essel Infraprojects and a mortgage on land in Gorai, Mumbai.

The remand directs fresh hearing on the factual aspects, ensuring reliance on authentic precedents, after concerns were raised about fabricated citations.

The court noted that the matter involves reconsideration of the same dispute, keeping a focus on verified law as it reassesses the J&K Bank–Essel Infraprojects case.

The NCLT is ordered to re-examine the case for fresh factual consideration, with details of appearances and counsel for both sides clarified in the proceeding.

Essel Infraprojects argued that liability should not persist after demerger and the 2014 amalgamation, but the NCLT maintained the corporate guarantee binding.

Alongside the main ruling, the Court disposed of ancillary matters including a Manipur panchayat polls plea and a bail-related issue involving Sonam Raghuvanshi.

In a landmark ruling, the Supreme Court warned against unverified AI-generated material in court, setting aside an NCLT order in the Essel Infraprojects insolvency case for relying on fake AI precedents and urging human oversight in decision-making.

The Bar Council of India is ordered to form a committee to establish guiding principles and determine disciplinary actions for violations by advocates and judges related to AI-generated content.

The Court emphasized integrity in adjudication, reiterating that technology should assist, not replace, human judgment, and underscoring the need for a human-in-the-loop.

A separate Bombay High Court case highlighted the issue of citing a non-existent case, underscoring the need for verification to avoid wasted judicial time.

Investigations revealed that several case citations used by the NCLT did not exist, uncovered by a suspended director, Pooja Ramesh Singh.

In the case Pooja Ramesh Singh v. Jammu and Kashmir Bank, Justices Narasimha and Aradhe remitted the matter for fresh adjudication based on verified facts and precedents, with the neutral citation 2026 INSC 668.