SC Rules: Citing Fake AI Judgments without Verification is Lawyer Misconduct

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New Delhi: The Supreme Court on Thursday declared a “zero-tolerance” policy for citing or relying on fake, AI-generated judgments, holding that such unverified use amounts to professional misconduct by advocates and a serious lapse by judges.

A Bench of Justices PS Narasimha and Alok Aradhe made the ruling while setting aside a National Company Law Tribunal (NCLT) order in the Essel Infraprojects insolvency case. The tribunal had relied on non-existent, “hallucinated” precedents produced by artificial intelligence tools. The National Company Law Appellate Tribunal (NCLAT) judgment that upheld the NCLT order was also set aside.

“No decision in the eyes of the law”

The Court said any decision based on fake or hallucinated AI-generated material is “no decision in the eyes of the law,” irrespective of whether the material directly influenced the outcome. Such judgments must be set aside even if “an iota” of fabricated material enters the decision-making process.

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“It is necessary for Courts to adopt a zero-tolerance mode for producing, citing or using AI-generated precedents without verification. It is a misconduct on the part of an advocate to cite such judgments without verification,” the Bench stated. The Court added that it is equally a serious lapse if a judge relies on such material.

Comparison to industrial disaster

The Bench likened the use of fake AI precedents to “the release of methyl isocyanate in the province of law and justice: invisible, insidious, and catastrophic by the time anyone notices”. Such material “strikes at the integrity of adjudication and its processes,” it said.

The ruling comes amid rising incidents of AI “hallucinations” in Indian courts. The Supreme Court itself faced pleadings with fabricated AI citations last year, and the Delhi High Court recently allowed withdrawal of a petition after authorities cited were found non-existent.

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