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Artificial Intelligence (AI) — Use in Legal Proceedings — Reliance on AI-generated judgments by a court is a serious matter concerning the integrity of the judicial process — Such judgments, if non-existent or fake, amount to misconduct rather than a simple error of judgment — Supreme Court orders examination of consequences and accountability for such practices — Notice issued to the Attorney General, Solicitor General, and Bar Council of India to address this institutional concern. Power Purchase Agreement (PPA) / Power Supply Agreement (PSA) — Interpretation of Contract — Surrounding Circumstances — Evidence Act, 1872, Sections 92, 94, 95 — Contractual terms can be clarified by attending circumstances and conduct of parties, even if contract is reduced to writing, to give meaning to terms that may otherwise be meaningless or unworkable. Arbitration and Conciliation Act, 1996 — Section 31(7)(a) — Interest awarded by Arbitral Tribunal — Contractual bar — Where a contract expressly prohibits the award of pre-award and pendente lite interest, an Arbitral Tribunal cannot award such interest, even if termed as compensation, as the arbitrator is bound by the terms of the contract. Contract Act, 1872 — Section 133 — Discharge of surety by variance in terms of contract — A variance made without the surety’s consent in the terms of the contract between the principal debtor and the creditor discharges the surety only with respect to transactions occurring subsequent to the variance. The surety remains liable for the original amount guaranteed. Insolvency and Bankruptcy Code, 2016 — Committee of Creditors (CoC) — Commercial Wisdom — Legislative intent to vest decisive authority in CoC, which comprises financial creditors who bear economic consequences of failure — Decisions on viability, valuation, and haircuts are commercial, not judicial — Courts do not substitute their assessment for that of the CoC — Adjudicatory authority performs a supervisory role, ensuring statutory compliance and procedural fairness, but refrains from second-guessing economic bodies.
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Industry–Law Department is not an industry within the meaning of Section 2(s) of the I.D. Act. Precedent–Reliance on the decision without looking into the factual background of the case before it, is clearly impermissible. Precedent–The enunciation of the reason or principle on which a question before a Court has been decided is alone binding as a precedent. Precedent–Judgments of Courts–Judges interpret statutes, they do not interpret judgments–They interpret words of statutes, their words are not to be interpreted as statutes.

2008(1) LAW HERALD (SC) 275 IN THE SUPREME COURT OF INDIA Before The Hon’ble Mr. Justice Arijit Pasayat The Hon’ble Mr. Justice P. Sathasivam Civil Appeal No. 3021 of 2006…

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