AI & Law

How courts and legislatures are treating Artificial Intelligence — case tracker, analysis, and India angle.

Legal papers representing cost orders for AI hallucinations in Bombay High Court
AI & Law, Hallucinations & Sanctions

Adverse Costs and a Bar Council Warning: When a Self-Represented Party Cited an AI-Fabricated Case — Deepak Bahry v. Heart & Soul Entertainment

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The Bombay High Court awarded adverse costs against a litigant after counsel submitted a legal brief containing multiple AI-hallucinated citations — cases that simply did not exist. The court held that relying on fabricated precedent without verification constituted a breach of professional duty, and that judges’ time is too valuable to be wasted correcting lawyers’ AI-generated errors.

AI & Law, Hallucinations & Sanctions

HC Went to the Library to Verify: GST Show Cause Notice Quashed After AI Hallucinations Found — Jeetmal Choraria v. Union of India

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The Delhi High Court dismissed a challenge to a GST show-cause notice, then discovered the petitioner’s counsel had cited AI-generated fake judgments throughout the pleadings. The court imposed exemplary costs and referred the matter to the Bar Council of Delhi, signalling that AI-assisted fabrication of case law is professional misconduct warranting disciplinary consequences beyond mere dismissal.

AI & Law, Hallucinations & Sanctions

Rs. 27.91 Crore Tax Demand Quashed: The Assessing Officer Who Used AI to Find Fake Judgments — KMG Wires v. ITO

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The Bombay High Court quashed a ₹2.84 crore income tax reassessment order after discovering the Revenue’s legal brief cited judgments that did not exist — fabricated by an AI tool. The court held that proceedings built on non-existent precedent were fundamentally flawed and could not stand, marking one of India’s first formal judicial rejections of AI-hallucinated legal authority.

AI & Law, Hallucinations & Sanctions

When a Judge Used AI and the Supreme Court Took Notice: Gummadi Usha Rani v. Sure Mallikarjuna Rao

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India’s Supreme Court and Andhra Pradesh High Court became early AI law landmarks when advocates submitted fake judgments generated by artificial intelligence. The Supreme Court flagged the fabricated citation in a major criminal appeal; the AP HC separately imposed costs on a lawyer who tendered AI-hallucinated cases. Both decisions send a clear warning: Indian courts will not tolerate AI-generated misinformation.

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