Artificial Intelligence – Artificial Intelligence Hallucination – AI technology in aid of adjudication – Tribunal relied on non-existent, fake and hallucinated material, generated through Artificial Intelligence (AI), as if it were a precedent in support of its judgment – Correctness:
Held: Respondent No. 1 has filed an affidavit indicating that the alleged judgments relied on by NCLT were not cited by its counsel at the bar – The affidavit also indicates that the so-called precedents relied on by the adjudicating authority were obtained through its own research – The fake, non-existent judgments escaped scrutiny by the first statutory appellate tribunal – Judicial process and the judgment under challenge are tainted by the usage of materials which are said to be precedents, but in reality, they are unreal, fake, and do not exist at all – A decision of a Court or an adjudicating authority based on material which is fake and hallucinated is no decision at all, and it amounts to subversion of the rule of law – Such a decision is unsustainable – Thus, the judgment and orders passed by the NCLT and NCLAT dated 28.08.2024 and 11.09.2025 are hereby set aside. [Paras 16, 17, 18]
Artificial Intelligence – Artificial Intelligence Application – Control over the application and usage of AI – Discussed. [Para 5] Artificial Intelligence – Artificial Intelligence in aid of Adjudication – The Courts to adopt a zero-tolerance mode for producing, citing or using AI-generated precedents without verification – Discussed. [Para 7]
Artificial Intelligence – Artificial Intelligence in Legal system – Adoption of AI technology in aid of adjudication – Requirement of a human loop at every stage. [Para 1]
Artificial Intelligence – Artificial Intelligence Hallucination – Directions issued:
Held: The Bar Council of India, being the apex statutory body, directed to constitute a committee and deliberate on this issue of members of the bar submitting such fake and hallucinated material before the Court as if they are precedents of law – The Bar Council must take up this issue with utmost seriousness, deliberate earnestly, and prescribe a guiding principle to prevent such occurrences, along with the disciplinary action that will follow a violation of the norms. [Para 9]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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