False Citations, Twisted Verdicts & A Lawyer's Apology: 'AI Hallucination' Hits Supreme Court

It was a startling first for the apex court of India when a litigant submitted a response drafted with the help of an AI tool that cited hundreds of entirely fabricated case laws, presenting a novel challenge

in front of the Supreme Court.

According to the Times of India, the case in question involved Omkara Asset Reconstruction Private Limited and Gstaad Hotels Private Limited (promoted by Deepak Raheja). The rejoinder filed on behalf of Gstaad Hotels invoked multiple judgments that do not exist in judicial records, or misrepresented legal reasoning from genuine cases—all courtesy Artificial Intelligence (AI).

When confronted, the advocate representing Gstaad Hotels acknowledged the “mistake”, saying he had “never been more embarrassed”. Though the filing lawyer withdrew the response, the Supreme Court decided to hear the matter on its merits, underlining that the court would not simply brush aside such a grave lapse.

TOI reported that according to a senior counsel appearing for the other side, the rejoinder was prepared using generative-AI tools, which “invented” precedents, complete with bogus citations and distorted statements of law, aimed at convincing the court in favour of the petitioner.

Earlier this year, in a case known as Greenopolis Welfare Association v. Narendar Singh and Ors., the Delhi High Court was forced to withdraw a petition after it was shown that many of the legal authorities cited in the plea simply did not exist.

According to Economic Times, the incident was widely seen as one of the first clear instances of “AI hallucination”—a phenomenon where AI confidently generates plausible-sounding, but entirely false, content. Judicial observers had then cautioned the legal community about the risks of blind reliance on AI-generated documents.

Legal experts believe that the episode represents not just a clerical error but a breach of professional duty. It also brings into focus the need for stricter verification protocols when AI is used for drafting court submissions.