Supreme Court faults NCLT, says humans must decide Essel Infraprojects
The Supreme Court just called out the National Company Law Tribunal (NCLT) for relying on AI-generated fake legal precedents in a big insolvency case involving Essel Infraprojects.
The judges said the production of fake material is "catastrophic" and takes away the very lifeline of judicial determination, and made it clear that humans, not AI, need to have the final say in court decisions.
Supreme Court cancels NCLT order ₹87.43cr
The Supreme Court canceled NCLT's order against Essel Infraprojects, which was about a claimed debt of ₹87.43 crore, and told the Bar Council of India to set up a committee to study how AI is affecting law.
The court also warned that while AI can help with efficiency, using it without checks could mess with fair decision-making, and warned about the dangers of unregulated AI use in the legal process.