Whether judicial decisions of NCLT and NCLAT relying on non-existent, fake, and AI-hallucinated case citations generated by Large Language Models (LLMs) are legally sustainable, and directives for BCI disciplinary oversight.
The Supreme Court of India set aside orders of NCLT Mumbai and NCLAT, declaring a zero-tolerance policy against citing or relying on fake, non-existent AI-generated precedents. The Court held that any judgment relying on hallucinated material is "no decision in the eyes of law" and amounts to subversion of the rule of law. The Bench directed the Bar Council of India (BCI) to constitute a committee and prescribe strict disciplinary action for advocates submitting unverified AI material.