Supreme Court Flags Alleged Use of AI-Generated Fake Case Laws in Gstaad Hotels Insolvency Appeal

The Supreme Court has agreed to examine allegations that artificial intelligence tools generated fictitious legal precedents that were subsequently cited in court pleadings.

Concerns about such imaginary case laws being cited were raised during a hearing of a dispute tied to insolvency proceedings against Gstaad Hotel, after senior counsel flagged that the appellant’s rejoinder contained over 100 non-existent citations.

The case arises from an appeal against the NCLAT’s decision upholding the admission of insolvency applications against Gstaad Hotels and Neo Capricorn Plaza. 

The Bench orally remarked that it would “put the appellant to task” if the citations were found to be fabricated or AI-generated. The matter will be heard next on December 8.

[Deepak Raheja v. Omkara Asset Reconstruction]