The Supreme Court on Thursday drew keen attention to unusual and problematic arguments in an appeal filed by the promoters of Gstaad Hotels Bangalore. During the hearing, the court was told that the reconsideration petition filed by promoter Deepak Raheja contains over 100 case law cases that do not exist. The motion raised immediate concerns in court because it raised the possibility that fabricated or AI-generated citations could be used in pending bankruptcy disputes.
Mr. Neeraj Kishan Kaur, senior advocate for Omkara Asset Reconstruction Ltd., explained that many of the quotations cited by the appellant were fictitious case law. He said these case laws cannot be traced to any legal database and are presented as if they are settled precedents. Mr. Kaul said that several criminal law judgments have been presented as IBC judgments, which poses serious questions for judicial scrutiny. He also pointed out that the same judgment was used for many different propositions, although the original judgment did not address such points at all.
A bench of Justice Dipankar Dutta and Justice Augustine George Masi expressed deep concern over the revelation. The court made it clear that this issue cannot be ignored. The court said it would hold the appellant liable if the quotation was found to be fictitious or generated by artificial intelligence prompts. The court stated:
“Impose a task on the appellant.”
The matter is currently scheduled for further hearing on December 8th.
