Supreme Court Sets Zero-Tolerance Rule for AI-Hallucinated Legal Precedent

On 2 July 2026, the Supreme Court in Pooja Ramesh Singh v. Jammu and Kashmir Bank Ltd., 2026 INSC 668, set aside insolvency decisions that had relied on non-existent or hallucinated legal precedents generated through artificial intelligence. The Court declared a zero-tolerance approach to fake AI-generated citations in adjudication, stressed that human control must remain central to judicial decision-making, and directed the Bar Council of India to consider rules and disciplinary safeguards for advocates using AI-generated legal material. The judgment became an early landmark in India’s institutional response to generative AI inside courts and legal practice.