Why in News?
On 2 July 2026, a Supreme Court Bench of Justices P.S. Narasimha and Alok Aradhe set aside orders of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) in the Essel Infraprojects insolvency case, after finding that the NCLT had relied on fictitious, AI-generated legal citations — a lapse the appellate tribunal failed to catch.
The Court declared that any judgment influenced by even an iota of fake or hallucinated AI material is "no decision in the eyes of law" and directed the Bar Council of India (BCI) to formulate strict norms and disciplinary standards for advocates who cite unverified machine-generated authorities.
The ruling sits squarely in GS-2 and GS-3: it tests judicial integrity, due process and the rule of law, the regulation of emerging technology, and professional accountability — themes that recur across Mains, Essay and the Personality Test alike.
The use of AI-generated fake judgments is like the release of methyl isocyanate in the province of law and justice — invisible, insidious, and catastrophic by the time anyone notices.— Supreme Court of India, 2 July 2026 (invoking the 1984 Bhopal gas tragedy)
Key Takeaways
"No Decision in Law"
A judgment shaped by even a trace of hallucinated AI material is void — "no decision in the eyes of law." This creates a bright-line standard of validity for orders in the AI era, protecting precedent-based adjudication.
Misconduct, Not Error
Reliance on fabricated precedents is treated as professional "misconduct", not a mere "error in decision-making." This elevates the accountability standard for both judges and advocates and can trigger disciplinary consequences.
BCI Directed to Act
The Court ordered the Bar Council of India to frame binding norms — mandatory citation verification, certification, and penalties — for lawyers filing AI-drafted pleadings with unverified authorities.
Assist, Never Replace
The Court draws a firm line: AI may be an assistive tool for efficiency, but can never substitute independent human reasoning, judicial discretion, or professional accountability — the doctrine of human primacy.
Draft AI-in-Courts Rules
The Supreme Court AI Committee's draft "Regulations for Use of AI in Courts, 2026" proposes a complete ban on AI in adjudication, sentencing, bail eligibility, credibility assessment and risk scoring.
The Hallucination Risk
Generative models produce fluent but fabricated citations. Coupled with automation bias — over-trust in confident machine output — this can silently corrupt the foundation of common-law reasoning.
UPSC GS Metadata
Quick Facts Box
- The SC likened AI-generated fake judgments to methyl isocyanate — the gas behind the 1984 Bhopal tragedy.
- The 2 July 2026 ruling was delivered by Justices P.S. Narasimha and Alok Aradhe.
- NCLT relied on fictitious AI-generated citations in the Essel Infraprojects insolvency case.
- The NCLAT failed to catch the error; its order was also set aside.
- On 27 Feb 2026, the same Bench termed such reliance "misconduct," not mere error.
- The Feb case: Gummadi Usha Rani v. Sure Mallikarjuna Rao (Andhra Pradesh trial court).
- Senior advocate Shyam Divan was appointed amicus curiae in the February matter.
- On 17 Feb 2026, a CJI Surya Kant Bench flagged lawyers citing the non-existent case "Mercy vs Mankind."
- The draft "Regulations for Use of AI in Courts, 2026" was released for consultation on 3 June 2026.
- The draft prohibits AI in adjudication, sentencing, bail eligibility, credibility assessment and risk scoring.
- The Supreme Court AI Committee is chaired by Justice P.S. Narasimha (reconstituted Dec 2025).
- A judgment touched by AI hallucinations is "no decision in the eyes of law."
- UNESCO issued 15-principle Guidelines for AI in courts and tribunals (2025) — non-binding.
- US Chief Justice Roberts urged "caution and humility" on AI in the legal field.
- eCourts Phase-III (₹7,210 crore, 2023–27) integrates AI/ML for the Indian judiciary.
- Pilot AI tools: LegRAA (research), ASR-SHRUTI (voice-to-text), PANINI (translation), Digital Courts 2.1.
- Core constitutional touchpoints: Articles 21, 14, 50 and 39A.
- COMPAS (US risk-scoring tool) is not used in India — a common Prelims trap.
How the Judiciary Reached This Moment
Two Rulings — Anchor Them Correctly
Essel Infraprojects (2 July 2026)
What it did: Set aside tribunal orders built on fabricated AI citations.
- Bench: Justices P.S. Narasimha & Alok Aradhe.
- NCLT relied on fictitious precedents; NCLAT failed to detect them.
- Held any such order is "no decision in the eyes of law."
- Directed the BCI to formulate strict norms for advocates.
Why it matters: Establishes a validity test — hallucinated material voids the decision itself.
Gummadi Usha Rani (27 Feb 2026)
What it did: Recharacterised the wrong from "error" to "misconduct."
- Same Bench; Andhra Pradesh trial court cited AI-fabricated case laws.
- Held it is "not an error in decision making… it would be a misconduct."
- Reasoning: fabricated precedents strike at adjudicatory integrity and the rule of law.
- Shyam Divan appointed amicus curiae.
Why it matters: This — not the July ruling — is the origin of the "misconduct, not error" standard.
Constitutional & Legal Foundations
Article 21
Right to life and personal liberty — a fair trial and due process are integral. A decision resting on fabricated precedents offends the guarantee of a fair hearing.
Article 14
Right to equality. AI trained on historical data can encode bias (caste, gender, religion), producing arbitrary or discriminatory outcomes that fail the equality test.
Article 50
Separation of the judiciary from the executive (DPSP). Reinforces judicial independence — including from opaque technological intrusion into decision-making.
Article 39A
Equal justice and free legal aid (DPSP). AI, used responsibly for translation and research, can widen access to justice for the marginalised.
Advocates Act, 1961
Section 49(1)(c) empowers the BCI to set standards of professional conduct; Section 35 provides for disciplinary action against professional misconduct — the hook for the SC's directive.
Allied Statutes
Companies Act, 2013 (NCLT/NCLAT framework), IT Act, 2000, Contempt of Courts Act, 1971, and the CPC, 1908 (procedural integrity) all frame the wider legal context.
Comparative Best Practices
| Country / Body | Approach to AI in the Judiciary |
|---|---|
| USA | CJ Roberts urged "caution and humility"; sanctions on lawyers citing fake AI cases (Mata v. Avianca, 2023); COMPAS risk-scoring remains controversial. |
| UK | Judicial guidance on AI; emphasis on human oversight; AI used for administrative tasks, not adjudication. |
| EU | EU AI Act (2024) — risk-based classification; high-risk justice/law-enforcement AI requires human oversight and transparency. |
| Germany | Constitutional emphasis on algorithmic transparency; human dignity limits fully automated decisions. |
| Estonia | Piloted an "AI judge" concept for small claims; scaled back amid rights and accountability concerns. |
| UNESCO | 15-principle global guidelines (2025): transparency, accountability, human oversight, human-rights protection — non-binding. |
| India | Draft Rules for AI in Courts, 2026: bans AI in adjudication, sentencing and bail; zero tolerance for hallucinated precedents. |
Key UPSC Facts & Figures
The Governance & Regulatory Architecture
Draft Rules for AI in Courts, 2026
Overview: India's first comprehensive attempt at judicial AI governance, released for public consultation on 3 June 2026.
Prohibits AI In
- Adjudication of disputes; sentencing in criminal cases.
- Bail eligibility and credibility assessment of witnesses.
- Risk scoring (flight-risk, recidivism prediction); undisclosed AI affecting liberty.
Permits & Principle
Allows assistive uses (translation, transcription, research). Clause 8 anchors human primacy — accountability rests exclusively with the human officer.
eCourts Phase-III (2023–27)
Overview: A ₹7,210 crore programme to build a digital, data-driven judiciary.
Key Features
- Digitisation of vast legacy records; unified cloud infrastructure.
- AI/ML integration for scheduling, defect-curing and metadata extraction.
- Expansion of eSewa Kendras for citizen access.
Significance
Creates the backbone on which court AI runs — raising both efficiency and the stakes of misuse.
Supreme Court AI Committee
Overview: Reconstituted by CJI Surya Kant (Dec 2025) to steer AI adoption across the higher and subordinate judiciary.
Composition
- Chair: Justice P.S. Narasimha.
- Members: Justices Sanjeev Sachdeva, Raja Vijayaraghavan V, Anoop Chitkara, Suraj Govindaraj.
- Proposes a permanent apex body at the SC and AI committees at every High Court.
Output
Authored the draft AI-in-Courts Rules, 2026, and the ban on undisclosed AI systems.
Assistive AI Tools (Pilot)
Overview: Tools cleared for supportive, non-adjudicatory roles in Indian courts.
The Toolkit
- LegRAA — Legal Research & Analysis Assistant.
- ASR-SHRUTI — voice-to-text for dictation of orders.
- PANINI — translation of judgments and pleadings.
- Digital Courts 2.1 — paperless court management (IIT Madras collaboration on prototypes).
Significance
Demonstrates the "assist, not replace" model — efficiency gains without touching core reasoning.
International & Expert Frameworks
UNESCO Guidelines (2025)
Fifteen universal principles for AI in courts — transparency, accountability, human oversight, human-rights protection and multistakeholder governance. Non-binding, but the leading global benchmark.
USA & EU
US CJ Roberts urged caution and humility; courts have sanctioned AI-fabricated filings. The EU AI Act (2024) classifies judicial AI as high-risk, mandating human oversight and audit.
Council of Europe
The Framework Convention on AI (2024) — the first international treaty on AI — anchors AI use to human rights, democracy and the rule of law, offering India a treaty-grade reference point.
Expert Recommendations — Takshashila Institution
Independent Audit & Overreliance Testing
Revisit Clause 38's bar on external audit — permit security-cleared third-party auditors under confidentiality. Add "overreliance" (automation-bias) testing so human-in-the-loop is real, not nominal.
Risk-Tiered Verification & Bias Detection
Apply full verification to substantive legal reasoning and a lighter regime to administrative tasks. Mandate auditable bias-detection across caste, religion, sex, gender, disability and language; design calibrated private-sector incentives.
Quality Quotes (for Mains & Essay)
1. "The use of AI-generated fake judgments is like the release of methyl isocyanate in the province of law and justice — invisible, insidious, and catastrophic by the time anyone notices." — Supreme Court of India (2 July 2026).
2. "A decision based on such non-existent and fake alleged judgments is not an error in the decision making. It would be a misconduct and legal consequence shall follow." — Justices P.S. Narasimha & Alok Aradhe (27 Feb 2026).
3. "Justice must be done and seen — not hallucinated." — a widely cited framing of the court's zero-tolerance stance.
UPSC Prelims Practice — 10 Questions
Covers the 2026 rulings, the draft AI-in-Courts Rules, the misconduct/error distinction, permitted vs prohibited AI, the tools, UNESCO's principles and constitutional articles. Tap any option for instant feedback, then open the explanation.
With reference to the Supreme Court's July 2026 ruling on AI in courts, consider the following statements:
2. The Court likened AI hallucinations to methyl isocyanate.
3. The Court directed the Union Law Ministry to frame AI regulations.
Which of the statements given above are correct?
1 ✓ The Court set aside the NCLT and NCLAT orders in the Essel Infraprojects insolvency case. 2 ✓ It coined the methyl-isocyanate analogy, invoking the 1984 Bhopal disaster. 3 ✗ The Court directed the Bar Council of India, a statutory body governing advocates — not the Union Law Ministry — to frame norms. Confusing the regulator of the legal profession (BCI) with the executive ministry is the classic trap; the BCI acts under the Advocates Act, 1961.
The draft "Regulations for Use of AI in Courts, 2026" prohibits the use of AI in which of the following?
2. Sentencing in criminal cases
3. Evaluation of the credibility of witnesses
4. Translation of judgments
Select the correct answer using the code below:
The draft bars AI from core judicial functions — adjudication, sentencing, bail eligibility and credibility assessment — where it could affect the substantive rights of parties. Translation of judgments is expressly permitted as an assistive, non-adjudicatory task. The design principle is that AI may aid efficiency and access (translation, transcription, research) but must never enter the zone of judgment. Any option including translation among the prohibitions is therefore wrong.
Consider the following statements about the Supreme Court AI Committee:
2. It was reconstituted by CJI Surya Kant in December 2025.
3. It published the draft AI-in-Courts Regulations in 2026.
Which of the statements given above are correct?
1 ✗ The Committee is chaired by Justice P.S. Narasimha, not the CJI; the CJI reconstituted it but does not head it. 2 ✓ It was reconstituted by CJI Surya Kant in December 2025. 3 ✓ It authored and published the draft AI-in-Courts Rules, 2026. Assuming that the senior-most judge automatically chairs every committee is a frequent error — always check the notified composition.
Assertion (A): The Supreme Court termed reliance on AI-generated fake judgments as "misconduct" rather than an "error in decision-making."
Reason (R): Such conduct strikes at the integrity of the adjudicatory process and has a direct bearing on the rule of law.
Both statements are true, and R is precisely why A follows. The Court reasoned in Gummadi Usha Rani (Feb 2026) that citing fabricated precedents is not a good-faith slip but a breach that undermines adjudicatory integrity and the rule of law — which is exactly what converts an "error" into "misconduct" with disciplinary consequences. The causal link between R and A is direct, so R correctly explains A.
Which of the following AI tools is/are in pilot use in the Indian judiciary?
2. ASR-SHRUTI
3. PANINI
4. COMPAS
Select the correct answer:
LegRAA (legal research), ASR-SHRUTI (voice-to-text) and PANINI (translation) are assistive tools piloted in Indian courts. COMPAS is a US proprietary risk-assessment tool used in sentencing/bail there, criticised for opacity and racial bias — it is not deployed in India and, indeed, its function (risk scoring) is exactly what India's draft rules prohibit. Slotting a foreign tool into an Indian list is a common distractor.
The Supreme Court's analogy of AI hallucinations to "methyl isocyanate" refers to which historical event?
Methyl isocyanate (MIC) was the toxic gas that leaked from the Union Carbide plant in Bhopal in December 1984, among the worst industrial disasters in history. The Court's point is that, like MIC, AI hallucinations are invisible and delayed in effect — catastrophic by the time they are detected. Chernobyl and Fukushima involved radiation; the London smog involved sulphur dioxide.
Under the draft AI-in-Courts Rules, 2026, which of the following is NOT prohibited?
Translation is an expressly permitted, assistive use that widens access to justice for non-English speakers. Risk scoring for bail, recidivism prediction, and undisclosed AI affecting liberty all fall in the prohibited zone because they intrude on adjudication and rights while lacking transparency. The unifying test: AI may support the process but must not decide, profile, or operate opaquely on questions of liberty.
Consider the following regarding UNESCO's Guidelines for AI in Courts (2025):
2. They are among the first global ethical frameworks for AI in courts.
3. They are legally binding on member states.
Which of the statements given above are correct?
1 ✓ The guidelines articulate 15 principles. 2 ✓ They are among the earliest dedicated global frameworks for judicial AI. 3 ✗ They are non-binding benchmarks, not a treaty. UPSC frequently tests the binding vs advisory character of international instruments — soft-law guidelines (UNESCO) differ from a treaty like the Council of Europe's Framework Convention on AI (2024).
Match the AI tool (Column I) with its function (Column II):
A. LegRAA 1. Voice-to-text dictation
B. PANINI 2. Legal research assistance
C. ASR-SHRUTI 3. Translation of judgments
D. Digital Courts 2.1 4. Paperless court management
Select the correct code:
LegRAA assists legal research; PANINI (named for the Sanskrit grammarian) handles translation; ASR-SHRUTI performs automatic speech recognition (voice-to-text); Digital Courts 2.1 manages paperless workflows. A useful mnemonic: PANINI = language/translation, SHRUTI = "heard" speech = transcription — the two most easily swapped options.
Which of the following best describes the Supreme Court's position on AI in the justice-delivery system?
The Court's consistent position — the doctrine of human primacy — is that AI is welcome for efficiency and access as an assistive tool, but cannot substitute independent human reasoning, discretion or accountability. Option A is too absolute (assistive use is allowed); C reverses reality (adjudication is prohibited, research permitted); D contradicts the entire regulatory drive, including the CJI's remark that there is "no question of unregulated AI use by judges."
Model Question — GS-2 (15 Marks, ~250 words)
"The Supreme Court's zero-tolerance approach to AI-generated fake precedents reflects the tension between technological efficiency and judicial integrity." Critically examine in the light of recent judicial observations.
Marks Breakdown
Introduction
On 2 July 2026, the Supreme Court set aside NCLT and NCLAT orders that relied on AI-generated fictitious citations, likening such hallucinations to methyl isocyanate — "invisible, insidious, and catastrophic by the time anyone notices." The observation reopens an enduring dilemma: how to harness AI's efficiency in an overburdened judiciary of over five crore pending cases without compromising the integrity of precedent-based adjudication.
The Case for AI (Efficiency)
- Access & speed: Tools like PANINI (translation) and ASR-SHRUTI (transcription) widen access for non-English litigants and accelerate case processing.
- Research support: LegRAA aids legal research; eCourts Phase-III (₹7,210 crore) enables data-driven scheduling and record management.
- Backlog relief: Assistive automation can free judicial time for substantive reasoning.
The Integrity Concerns
- Hallucinations: Generative models fabricate plausible-looking citations, as in the NCLT's reliance on non-existent precedents.
- Automation bias: Over-trust in confident AI output erodes independent judicial reasoning.
- Bias & opacity: Models trained on historical data may perpetuate caste, gender and religious bias (Article 14); undisclosed systems offend due process (Article 21).
- Verification burden: Checking every citation strains under-staffed courts; a legislative vacuum leaves regulation judge-made.
The Judicial Lens
The Court's response is calibrated, not Luddite. It elevates the standard — reliance on fabricated precedents is "misconduct," not "error" (Gummadi Usha Rani, Feb 2026) — and voids tainted orders as "no decision in the eyes of law." It does not ban AI outright, but draws a firm line between permissible assistance and impermissible substitution: the doctrine of human primacy.
Way Forward & Conclusion
A durable framework needs: swift BCI norms with mandatory citation verification; risk-tiered verification (full for reasoning, lighter for admin tasks); independent third-party audit under confidentiality (revisiting Clause 38); mandatory bias-detection and AI-literacy training; and, ultimately, a comprehensive AI law from Parliament aligned with UNESCO's principles. Efficiency without integrity is no efficiency at all — technology must serve justice, never the reverse.
Value Addition
- Rulings: Essel Infraprojects (Jul 2026) — "no decision in the eyes of law"; Gummadi Usha Rani (Feb 2026) — misconduct, not error.
- Constitutional: Articles 21 (fair trial), 14 (equality/AI bias), 50 (judicial independence), 39A (access to justice).
- Statute: Advocates Act, 1961 — Section 49(1)(c) (conduct rules) and Section 35 (misconduct); Companies Act, 2013 (NCLT/NCLAT).
- Data & schemes: eCourts Phase-III (₹7,210 crore); draft AI-in-Courts Rules, 2026; tools — LegRAA, PANINI, SHRUTI.
- Global: UNESCO 15 principles; EU AI Act (2024); Council of Europe Framework Convention on AI (2024); Mata v. Avianca (US, 2023).
- Concepts: AI hallucination, automation bias, human-in-the-loop, human primacy, risk-tiered verification.
Relevant UPSC PYQs
GS-3, 2020: "Explain the concept of the fourth industrial revolution / digital revolution." — situate judicial AI within emerging-tech governance.
GS-2, 2018: "How far do you agree that the establishment of tribunals has adversely affected the core principle of independence of the judiciary?" — links to NCLT/NCLAT and adjudicatory integrity.
GS-4, 2019: "What do you understand by 'probity' in public life?" — connects to the misconduct standard and professional integrity of advocates and judges.
More Mains Angles (Multi-GS)
GS-3 · Science & Technology
Examine the risks and opportunities of AI in justice delivery. Opportunities: backlog relief, translation, research. Risks: hallucination, automation bias, training-data bias, opacity. Argue for risk-tiered verification, independent audit, an AI register and incident reporting.
GS-4 · Ethics
On "justice must be done and seen — not hallucinated": discuss integrity vs efficiency, human primacy (Clause 8), transparency, and dignity under Article 21. A judge relying on fabricated precedents fails the core duty to decide on real law.
GS-2 · Polity & Governance
Analyse the BCI's role under the Advocates Act in disciplining AI misuse. The SC's directive elevates the standard from negligence to misconduct, drawing on global precedents (e.g., US sanctions in Mata v. Avianca).
GS-2 · International Relations
Compare India's draft rules with the EU AI Act, US practice and UNESCO principles. Lessons: permit external audit, adopt a risk-based approach, secure legislative backing, and align for global interoperability.
Essay Tips for This Theme
Open with the methyl-isocyanate analogy; use a historical sweep (Bhopal 1984 → hallucinations 2026); deploy data (eCourts ₹7,210 cr, over 5 crore pending cases); engage theory (accountability, human dignity, the "human-in-the-loop" ideal); and resolve toward human primacy and a partnership between technology and justice — not a machine-versus-human binary.
Thesis
Technology may accelerate justice, but it can never author it; the integrity of adjudication rests on human reasoning that no machine can outsource.
Opening Hook
"A citation that never existed can still convict a man who does." The Supreme Court's comparison of AI hallucinations to methyl isocyanate reframes a technical glitch as an existential threat to the rule of law.
Body Structure
- Part I: The analogy — Bhopal 1984 as a parable of invisible, delayed catastrophe.
- Part II: The crisis — hallucinated citations from trial courts to tribunals.
- Part III: The response — "misconduct not error," draft rules, BCI norms.
- Part IV: The principle — human primacy and rigorous verification.
Counterargument
"AI can democratise access to justice." Concede the gain — then show it is realised only within guardrails that keep human judgment at the centre.
Conclusion
The invisible must be made visible through regulation. Justice seen to be done is justice grounded in truth, not fabrication.
Thesis
AI is simultaneously an engine of capacity and a source of error; in public institutions, its promise is inseparable from its peril.
Opening Hook
"The most dangerous falsehoods are the ones spoken with perfect confidence." Generative AI is fluent precisely where it is fabricating.
Body Structure
- The dual nature of AI — from Babbage's engine to large language models.
- Sectoral applications: judiciary, administration, e-governance, welfare targeting.
- Risks: bias, opacity, and the accountability deficit when machines "decide."
- Regulatory design: human-in-the-loop, transparency, independent audit.
Conclusion
Governance by humans, assisted by machines — never the reverse — is the settlement a democracy must insist upon.
Thesis
Efficiency purchased at the cost of integrity is a false economy; institutions endure only when speed serves trust.
Opening Hook
"A backlog of five crore cases is a crisis; a judgment built on a lie is a catastrophe." India's courts face both temptations at once.
Body Structure
- The efficiency argument: pendency, the eCourts journey, assistive AI.
- The integrity counter: the NCLT hallucination case; verification burden.
- The trade-off: where to draw the assist-versus-decide line.
- Regulatory design: risk-tiered verification, capacity building, calibrated incentives.
Conclusion
The wise institution automates the routine and reserves judgment for the human — protecting both throughput and trust.
Thesis
Accountability cannot be delegated to an algorithm; when AI fails, responsibility must still rest with an identifiable human.
Opening Hook
"When the machine errs, who apologises to the wronged?" The question exposes the accountability gap at the heart of automated decision-making.
Body Structure
- From automation to autonomous systems — the shifting locus of responsibility.
- Legal frameworks: the "misconduct" standard, the BCI directive, draft rules.
- Ethical dimensions: automation bias, opacity, the duty to give reasons.
- Institutional design: human primacy, independent audit, an AI register.
Conclusion
The buck stops with the human, not the machine — accountability is the price of using powerful tools.
Thesis
The gravest risks are the invisible ones; systemic threats to justice must be named and regulated before they detonate.
Opening Hook
"In Bhopal, the gas was odourless until it was lethal." The Court's analogy warns that AI's harm to law will be felt only when it is already done.
Body Structure
- The analogy explored — invisibility, delay, scale.
- Bhopal (1984) as a cautionary tale of regulatory failure.
- Contemporary crisis: hallucinations, automation bias, regulatory gaps.
- The response: zero tolerance, transparency, international cooperation.
Conclusion
Only vigilance turns the invisible visible — and turns a warning into a safeguard.
Additional Essay Angles
Trust in the Age of Automation
Can institutions build "verification infrastructure" — audit trails, disclosure, human sign-off — that makes AI trustworthy rather than merely fast? What would such a compact look like for the courts?
The Global Race to Regulate AI
From the EU AI Act to UNESCO's principles, states are converging on human oversight. Is India a rule-maker or rule-taker in this emerging order — and where should it lead?
Human Dignity as a Limit on Code
From Puttaswamy onward, dignity anchors rights review. How should it discipline the use of algorithms in sentencing, bail and welfare decisions?
UPSC Personality Test Preparation
Questions on judicial AI test your factual precision (rulings, tools, dates), your grasp of the efficiency–integrity balance, and your ability to hold two truths at once: technology's promise and its perils. Avoid one-sided answers; the Board values calibrated, evidence-based judgment and a clear ethical anchor.
The analogy references the 1984 Bhopal gas tragedy, where a methyl isocyanate leak caused mass casualties. By comparing AI-generated fake judgments to that gas, the Court captured three qualities of the threat: it is invisible (fabricated citations look authentic), insidious (it spreads silently through pleadings and orders), and catastrophic by the time it is noticed (a wrongful decision may already stand).
Its significance is rhetorical and doctrinal. Rhetorically, it elevates a seemingly technical error to an existential risk for the rule of law. Doctrinally, it justifies a zero-tolerance standard — that any judgment tainted by hallucinated material is "no decision in the eyes of law." It is a memorable framing that communicates urgency to judges, lawyers and the public alike.
The Supreme Court set aside the orders of the NCLT and the NCLAT in the Essel Infraprojects insolvency matter, after the NCLT relied on fictitious AI-generated citations and the NCLAT failed to catch the error. The ruling came from the Bench of Justices P.S. Narasimha and Alok Aradhe.
The Supreme Court AI Committee is chaired by Justice P.S. Narasimha — not the CJI — and was reconstituted by CJI Surya Kant in December 2025. Its mandate is to steer the adoption, development and deployment of AI across the higher and subordinate judiciary; it authored the draft "Regulations for Use of AI in Courts, 2026." Keeping the chair distinct from the CJI is a common factual slip worth avoiding.
I would apply a simple test: does the AI output touch the substantive rights of parties or the exercise of judgment? If yes, it is impermissible; if it merely supports the process, it is assistive. On the permissible side sit translation (PANINI), transcription (ASR-SHRUTI), legal research (LegRAA) and document or case management — tasks that improve access and efficiency without deciding anything.
On the impermissible side sit adjudication, sentencing, bail eligibility, credibility assessment and risk scoring — the very functions the draft rules prohibit, because they involve discretion, liberty and dignity. Crucially, even assistive outputs must be independently verified; a research suggestion is a lead to check, never an authority to cite. The draft rules operationalise this line, and Clause 8's "human primacy" ensures accountability always rests with the human officer.
"Error" implies an inadvertent, good-faith mistake attracting lesser consequences; "misconduct" implies a professional or ethical breach that invites disciplinary action. By choosing the latter, the Court held that citing fabricated precedents is not a pardonable slip but a failure of the basic duty to verify — one that strikes at adjudicatory integrity and the rule of law.
The distinction matters because it elevates the accountability standard for both judges and advocates. For lawyers, it opens the door to proceedings under Section 35 of the Advocates Act, 1961, and underpins the SC's direction to the Bar Council of India to frame norms. It sends a deterrent signal: verification is a non-negotiable professional obligation in the AI era, not a courtesy.
Automation bias is the well-documented human tendency to over-trust machine-generated outputs, especially when they are fluent and confident. In a judicial setting, a judge or clerk may accept an AI-suggested citation or summary without the scrutiny they would apply to a junior's draft — effectively ceding a slice of independent reasoning to the tool.
This is dangerous precisely because AI hallucinations are persuasive: fabricated cases arrive with plausible names, numbers and holdings. Left unchecked, automation bias erodes the core of adjudication — the independent application of mind. The counter-measures are procedural and cultural: mandatory verification of every AI-derived authority, AI-literacy training, and a workplace norm that treats AI output as a starting point to be tested, never an endpoint to be trusted.
My first duty is to the court and the integrity of the proceeding. I would privately and promptly alert the colleague, giving them the chance to correct the record by withdrawing the citation and informing the court — the honourable and least damaging course.
If the colleague refuses and the false citation risks misleading the court, my obligation to the administration of justice overrides collegiality: I would bring it to the court's notice and, if warranted, report the matter to the Bar Council under Section 35 of the Advocates Act. The Supreme Court has characterised such conduct as "professional misconduct." Throughout, I would act factually and without malice — the goal is to protect the litigant and the court, not to punish a peer.
For: such tools can rapidly surface leads across vast material, assist with translation and drafting, and help clear backlog — a real public good in an overburdened system. Used well, they widen access and save time for substantive reasoning.
Against: they hallucinate confidently, invite automation bias, are often opaque, and may carry biases from their training data — risks that are unacceptable in adjudication. My balanced position: permit them strictly as assistive research aids, subject to mandatory independent verification of every output, a firm prohibition on AI in adjudication, sentencing and bail, and compulsory AI-literacy training. In short, the tool may help the judge think, but it must never think for the judge.
I would combine correction with prevention. First, issue a practice circular mandating that all citations be verified against official repositories before filing, and require counsel to certify that AI-assisted drafts have been independently checked. Second, in individual cases, cross-verify suspect citations (case numbers, party names, holdings) and reject or return non-verifiable filings, recording reasons.
Third, refer persistent or wilful offenders to the State Bar Council for disciplinary consideration, consistent with the Supreme Court's misconduct standard. Fourth, invest in capacity — sensitisation workshops on AI literacy and automation bias for the local bar, and, where feasible, screening tools to flag anomalous citations. I would escalate systemic concerns to the High Court so that a uniform, fair approach applies across courts, protecting litigants without penalising honest error.
Interview Strategy — Do's & Don'ts
- ✅ Lead with balance: Acknowledge both AI's efficiency and its integrity risks before taking a calibrated position.
- ✅ Be factually precise: Anchor correctly — Gummadi Usha Rani (Feb 2026) for "misconduct," Essel Infraprojects (Jul 2026) for "no decision in law," Justice Narasimha (not the CJI) as committee chair.
- ✅ Use the "assist vs decide" test: Frame answers around whether AI touches substantive rights or judgment.
- ✅ Centre the litigant: In situational questions, protect the affected person and the court, not the institutional dispute.
- ✅ Structure & poise: One-line thesis → two or three reasons → a way forward; maintain calm eye contact and steady, unhurried speech.
- ⚠️ Avoid extremes: Neither "AI will replace judges" nor "ban all AI" — sophistication lies in the proportionate middle.
- ⚠️ Don't fence-sit: If asked your view, give a reasoned one with caveats; the Board rewards honest, defensible judgment.
Key Actors & Stakeholders
Supreme Court & AI Committee
Adjudicates AI misuse and steers regulation; the AI Committee (Chair: Justice Narasimha) drafts the rules.
Bar Council of India
Directed to frame binding norms and disciplinary standards for advocates citing unverified AI material.
NCLT & NCLAT
Tribunals whose orders were set aside for relying on — and failing to catch — fabricated AI citations.
Judges & Advocates
Front-line users of AI; bound to verify every citation and to exercise independent judgment.
Litigants
Potential victims of AI-induced miscarriage of justice; the ultimate stakeholders in judicial integrity.
AI Vendors & Academia
Build the tools and audit the systems; UNESCO and expert bodies (e.g., Takshashila) shape governance.
Quick Revision Tags
GS Concepts
Friction Points
Essay & Interview Angles
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