The Supreme Court set aside NCLT and NCLAT orders in the Essel Infraprojects insolvency case after finding reliance on fake AI-generated judicial precedents. The Court adopted a zero-tolerance approach, holding that citing unverified AI-generated judgments amounts to professional misconduct by advocates.
The Gujarat High Court flagged a “worrying trend” of quasi-judicial orders relying on AI-generated, dubious case law. In proceedings involving Marhaba Overseas Pvt. Ltd., it found GST order citations untraceable or wrongly attributed to different courts, raising serious concerns.
