E20 fuel clarification, hallucinated AI citations, NCLAT chairman and more

Your weekly rundown of significant judicial rulings and legal battles influencing policy, companies, regulation, and governance

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July 7, 2026 at 7:39 AM IST

“…In today’s scenario, India as a nation, is unified by heart and soul. If any person speaks about dividing Tamil Nadu into a separate nation, the person will certainly be referred to as having mental health issues and it will not excite any hatred at all among the common public.”

— Madras High Court while quashing criminal case against a person charged with sedition for advocating for Tamil Nadu as a separate nation.

The Controversy That Needs More Than a Clarification
Words, in a courtroom, are the most important and the reason for a major controversy from last week. Attorney General for India R Venkataramani, arguing in a case relating to fuel and ethanol supply, reportedly referred to centre’s E20 fuel programme as an experiment that will likely show clearer results later in time. This statement reported by not one, not two but multiple media outlets was called as “misreporting” in a clarification issued by AG’s office the next day. The fact-check was also carried by the government’s press bureau shortly thereafter.

The reported words of the AG were a diversion from the government’s held stance till now and was likely to raise many questions at the back of already existing resistance from consumers and automobile companies against the E20 fuel rollout. This possible backlash therefore warranted the clarification to firefight and prevent and limit misunderstanding among the consumers. However, this controversy does stand to take attention away from the real issue of evidence backed rollout of E20 fuel by putting what was spoken or misspoken in the court in the centre of the conversation.

Key Rulings:

  • Supreme Court sets aside NCLT judgment that relied on hallucinated AI precedents and citations, declares zero tolerance to citing fake AI-generated citations and asks BCI to frame guidelines and norms on the issue
  • Delhi High Court has held that a party that does not cooperate in arbitration proceedings later on cannot challenge the award passed
  • Delhi High Court has held that the National Stock Exchange falls within the purview and scope of the Right to Information Act

Courts:

  • Members and staff of Delhi’s famous Gymkhana Club have approached the Delhi High Court against government’s eviction notice against the colonial time club
  • Online platforms like food delivery and quick commerce along with industry body move Karnataka High Court over the state’s legislation on welfare of gig workers
  • Supreme Court to take up issue and decide whether CAG has the power to audit Delhi’s distribution companies
  • Actor Preity Zinta moves Bombay High Court over deepfakes, AI generated-content after the court granted her permission to sue
  • Delhi High Court orders blocking of rogue websites that unauthorisedly stream cricket matches, in a relief for Sony
  • Supreme Court directs status quo to be maintained on the issue of revision of ethanol allocation after BPCL appealed against the Karnataka High Court order saying it will impact E20 fuel programme

Quasi Courts:

  • Meru cab service withdraws its plea against Ola and Uber over predatory pricing from the NCLAT citing lack of resources to keep fighting
  • NCLAT says that ED’s proceedings under the PMLA are not hit by moratorium when a corporate debtor is admitted into insolvency

Others:

  • Justice Ashok Bhushan demits office as Chairperson of the National Company Law Appellate Tribunal
  • Bank of Baroda pays $600 million as settlement in NMC health fraud litigation in Abu Dhabi and London
  • Attorney General for India’s office clarifies that AG did not term the centre’s E20 fuel exercise as an “experiment” during court proceedings

The Big Listings:

Supreme Court, Delhi High Court will be on summer break this week

Jul 15: Delhi High Court to hear Apple Inc.’s plea against India’s competition law’s provisions on global turnover-based penalties on MNC

July: Supreme Court to hear PIL petition seeking tighter probe into Anil Ambani’s fraud allegations

Jul 27: Delhi High Court to hear Anil Ambani’s defamation lawsuit against NDTV

Jul 31: Securities Appellate Tribunal to hear appeal by Jane Street challenging SEBI’s move to allegedly refuse access to important documents to the firm in the case against it

* The dates of hearing can change and a concrete list is prepared just a day before

Legal Moves: 

  • Centre clears appointment of three judicial officers as additional judges at the Andhra Pradesh High Court
  • Richa Singh formerly of Medanta joins Aster DM Quality Care as Group General Counsel
  • Shobhit Batta leaves Khaitan & Co. to join Luthra & Luthra as partner
  • Rohit Ambast leaves CMS IndusLaw to join JSA Advocates & Solicitors as partner
  • Saumya Kakar leaves Trilegal to join S&R Associates as partner