Concerns Raised Over Use of AI in Judicial Decisions and Unjustified Award of Rs.1.08 Crore in Profits
In a significant development, the Delhi High Court has stayed a contentious judgment involving SNV Aviation Pvt Ltd and ABS Tour And Travels, citing concerns over the use of artificial intelligence in drafting judicial decisions. The judgment, originally passed by the District Judge (Commercial)-02, South-East, Saket Court, awarded ABS Tour And Travels a sum of Rs.1,08,80,000 as loss of profits following a dispute over 640 tickets booked with Akasa Air, operated by SNV Aviation Pvt Ltd.
The appeal, filed by SNV Aviation under Section 13 of the Commercial Courts Act, 2015, challenged the decree on two primary grounds. Firstly, the appellant alleged that the judgment was drafted using AI software, leading to the attribution of non-existent propositions of law to established case laws. This raised fundamental questions about the integrity of the judicial process and the proper review of judgments before their issuance.
Secondly, the appellant contested the award of the entire revenue from the disputed tickets as loss of profits, arguing that such a decision was untenable. The High Court, upon examining the impugned judgment and the appellant's submissions, acknowledged these concerns and emphasized the need for further examination to ascertain the involvement of AI in drafting and reviewing the judgment.
The High Court's decision to stay the judgment is contingent upon SNV Aviation depositing Rs.20 lakhs with the Registrar General of the High Court by May 30, 2026. The Court has also requisitioned the trial court records for further hearing scheduled on August 20, 2026.
This case underscores the emerging complexities in the legal domain with the integration of AI technologies. While AI can enhance efficiency and accuracy in legal drafting, it also poses challenges concerning the authenticity and reliability of judicial decisions. The Delhi High Court's intervention signals a cautious approach towards AI's role in the judiciary, ensuring that technological advancements do not compromise legal standards or the rights of litigants.
Bottom line:-
Commercial Disputes - Use of artificial intelligence software in drafting judicial decisions - Prima facie concern raised regarding attribution of non-existent propositions of law to case laws and whether such judgments have been properly reviewed before passing - Entire revenue of disputed tickets awarded as loss of profits found untenable.
Statutory provision(s): Commercial Courts Act, 2015 Section 13
SNV Aviation Pvt Ltd v. ABS Tour And Travels, (Delhi)(DB) : Law Finder Doc id # 2892947
