The debate over the validity of artificial intelligence (AI) has reached the Supreme Court of India after the National Company Law Tribunal (NCLT) relied on fake precedents and cases created using AI.

The Supreme Court on Thursday quashed the NCLT judgment on Essel Infraprojects’ insolvency, finding that the court relied on “non-existent, false and hallucinatory judgments/precedents generated using artificial intelligence”, the news agency reported. PTI I mentioned.
“Producing counterfeit, non-existent, hallucinogenic substances and using them as precedents in law is like releasing methyl isocyanate into the province of law and justice: invisible, insidious, and disastrous by the time anyone notices it. It not only pollutes, but takes away the lifeblood of judicial decision-making,” Justices B S Narasimha and Alok Arade said.
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The court found that this amounted to misconduct on the part of the lawyer.
“It is imperative that courts adopt a zero-tolerance approach to producing, citing or using AI-generated precedents without verification. It is misconduct on the part of a lawyer to cite such judgments without verification,” the court was quoted as saying.
The bench said it would also be a “serious misstep” if a judge relied on such fake or hallucinogenic material generated by artificial intelligence as precedents to support the decision.
He added: “We do not hesitate to declare that such a decision is not a decision in the eyes of the law, regardless of whether such materials have a direct or indirect impact on decision-making. Such decisions must be excluded even if a speck of fictitious or hallucinogenic material enters the decision-making process, because they violate the sanctity of deciding judgments.”
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The bench said it was extremely necessary to maintain integrity in decision making.
The court also noted that the case highlighted broader concerns about the use of AI in legal arbitration and stressed that although AI can assist in the process, adjudication must remain under the full and absolute control of human decision-makers.
The ruling said: “What is important to our decision-making process is our intention to adopt artificial intelligence technology to assist in arbitration, while at the same time asserting and declaring full and absolute control over the adjudications of an informed human at every stage, at every stage.”
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The court said that merely announcing the ban is not enough, and there must be a consequent action after accountability.
“Regarding the liability of the Bar, we direct the Bar Council of India (BCI), being the apex legal body, to constitute a committee and deliberate on this issue of Bar members presenting such fake and hallucinogenic material before the court as if it were legal precedents,” it said.
The ruling said that the Supreme Bar should treat this issue with the utmost seriousness and set a guideline to prevent such incidents, along with disciplinary action that would follow violation of the rules.
(with PTI inputs)

