Delhi HC stays Rs 1.08 crore decree against Akasa Air, flags AI use

The Delhi High Court stayed a Rs 1.08 crore decree against Akasa Air, flagging concerns that the lower court's judgment was AI-generated. The HC noted flawed reasoning, non-existent legal references, and unsustainable damage calculations.

The Delhi High Court has stayed a decree passed by a Saket District Commercial Court directing Akasa Air to pay Rs 1.08 crore to a travel agency for canceling 640 tickets, while also raising concerns over the apparent use of artificial intelligence tools in drafting the impugned judgment. A Division Bench of Justice Pratibha Singh and Justice Madhu Jain, in its order dated April 30 observed that portions of the trial court's judgment appeared prima facie to be AI-generated.

Concerns Over AI-Generated Judgment

The high Court noted that the manner of drafting, especially in distinguishing case laws, along with references to non-existent statutory provisions and misreading of Supreme Court decisions, raised serious concerns about the adjudicatory process. The issue was highlighted before the HC on the basis that multiple AI-detection tools had flagged key portions of the judgment including those central to the reasoning as entirely AI-generated. The Bench remarked that attributing non-existent propositions to judicial precedents is a matter of concern.

Dispute Background and Lower Court Ruling

The dispute arose from the cancellation of 640 tickets booked by Delhi based ABS Tours and Travels. The airline argued that the travel agent failed to comply with pre-deposit requirements under its terms and conditions, following which the bookings were cancelled and the amount refunded. The District Court, however, awarded ₹1.08 crore to the travel agency as loss of profits.

High Court Stays Decree Citing Unsustainable Calculation

On the question of damages, the High Court found the computation by the trial court to be fundamentally flawed, noting that the entire ticket value had been treated as profit without deducting the cost of procurement. It held that such an approach is clearly unsustainable in law. Accordingly, the High Court stayed the operation of the impugned judgment and listed the matter for further hearing on August 20, 2026. (ANI)

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