SC orders strict action against lawyers citing unverified AI-generated judgments - Storyboard18

The Supreme Court has adopted a zero-tolerance policy regarding the use of unverified AI-generated judicial precedents in legal proceedings, warning that lawyers who present such material face potential disciplinary action. This stance follows the court’s decision to set aside an order by the National Company Law Tribunal (NCLT) in the Essel Infraprojects insolvency case after it was discovered that the tribunal relied on fabricated legal citations.

What happened

During an independent verification of the Essel Infraprojects case, the Supreme Court determined that multiple judicial citations submitted to the tribunal were either entirely fictitious or contained fabricated extracts. A bench comprising Justices PS Narasimha and Alok Aradhe ruled that advocates possess a professional duty to verify the authenticity of all legal authorities before presenting them to courts. The court declared that the inclusion of any "fake or hallucinated material" in the decision-making process violates the sanctity of adjudication, rendering such decisions invalid.

As a consequence, the Supreme Court set aside the NCLT’s original order and restored the insolvency application for fresh consideration, directing the tribunal to reach a new decision within two weeks. Furthermore, the court has directed the Bar Council of India (BCI) to establish a committee tasked with framing comprehensive guidelines for the use of artificial intelligence in legal practice. This committee is also responsible for recommending specific disciplinary measures for legal professionals who submit fabricated or fake materials to the court.