India SC Quashes AI-Based Verdicts

The India — Supreme Court of India set aside orders from the India — National Company Law Tribunal and the India — National Company Law Appellate Tribunal in an insolvency case involving Essel Infraprojects and Jammu & Kashmir Bank. The decision came after the Supreme Court discovered that the NCLT had relied on 'non-existent, fake, and hallucinated' legal precedents generated by artificial intelligence. The court declared a 'zero-tolerance' policy for citing unverified AI-generated material, likening its misuse to 'the release of methyl Isocyanate in the province of law and justice.' It deemed such decisions invalid and mandated that any judgment tainted by even 'an iota' of fake material must be overturned. The India — Supreme Court of India also directed the India — Bar Council of India to form a committee to establish guidelines and disciplinary measures for lawyers who cite unverified AI-generated judgments, emphasizing that while AI can assist, human control over adjudication must remain absolute. The insolvency proceedings have been sent back to the India — National Company Law Tribunal for fresh consideration.