Pooja Ramesh Singh Vs Jammu And Kashmir Bank Ltd. & Anr. (Supreme Court of India)
Supreme Court order on AI generated citations emphasising that Human in the loop” must remain the governing principle of adjudication and If a judicial order relies upon fabricated precedents, even indirectly, such order becomes legally unsustainable
The Supreme Court set aside the judgments of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) after finding that the NCLT had relied on non-existent, fake and AI-generated judicial precedents, some of which contained fabricated paragraphs attributed to genuine citations. The Court held that reliance on such hallucinated material vitiates the judicial process and renders the decision unsustainable. It declared a zero-tolerance approach towards the production, citation or use of unverified AI-generated precedents by both advocates and judges, while clarifying that the judgment does not restrict the legitimate use of AI in adjudication with human oversight. The Court directed the Bar Council of India to constitute a committee to frame guiding principles and disciplinary measures regarding such conduct. It restored the Section 7 insolvency application to the NCLT for fresh consideration on merits, directed expeditious disposal within two weeks, and ordered the parties to maintain status quo until then.
