Supreme Court agrees to hear case involving fake AI-generated case laws

Omkara ARC alleges the appellant relied on non-existent rulings; Court says it will act if citations are fabricated

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The Supreme Court on Thursday agreed to look into a claim that a rejoinder filed by Gstaad Hotels Bengaluru promoter Deepak Raheja contained over a hundred fake or AI-generated case citations.

 

During the hearing, Senior Advocate Neeraj Kishan Kaul, appearing for Omkara Asset Reconstruction, informed the Bench that the rejoinder submitted by Raheja cited several judgments that “do not exist at all.” He alleged that the document relied on fabricated case laws, including criminal law rulings passed off as insolvency precedents, and suggested that these might have been produced using artificial intelligence tools.

 

Kaul also pointed out that several cited judgments had incorrect facts or were repeated for multiple legal propositions that did not correspond with the original orders. 

 

A Bench of Justices Dipankar Datta and Augustine George Masih took note of the allegations and observed that if the citations were indeed fictitious or AI-generated, the Court would “put the appellant to task.” The matter will be taken up again on December 8.

 

The dispute stems from insolvency proceedings initiated by Omkara ARC against Gstaad Hotels. The National Company Law Tribunal (NCLT), Mumbai, had admitted Omkara’s petitions on July 8, and the National Company Law Appellate Tribunal (NCLAT) upheld the decision on August 19, allowing action under Section 7 of the Insolvency and Bankruptcy Code (IBC) against both Gstaad Hotels and Neo Capricorn Plaza.

 

Raheja and another suspended director have challenged these orders before the Supreme Court, arguing that no payment default had occurred as of November 15, 2022, and that misstatements in the accounts led to erroneous conclusions.