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When Does An Order Become A Binding Precedent? Supreme Court Explains 19 Aug 2023 1:35 PM
When Does An Order Become A
Binding Precedent? Supreme Court Explains
19 Aug 2023 1:35 PM
Secunderabad Club vs CIT | 2023 (SC) | 2023 INSC 736
The ratio decidendi has a
binding effect meanwhile the obiter dictum is of persuasive effect.
The court
made the following observations regarding the concept of ratio decidendi and
binding
1. What is binding in terms of
Article 141 of the Constitution is the the ratio decidendi of a judgment ,the
reason assigned in support of the conclusion.
2. The
reasoning of a judgment can be distinguished only upon reading of a judgment
in its entirety the facts involved,statutory provisions
involved in the matter the court has applied or interpreted and the
decision has to be read in the context of the particular
3.
If an order of this Court is brief and meant
only for the purpose of closure of the controversy involved in a particular
case and with a view to conclude the case, undoubtedly, such an order is
binding on the parties to the said order, but in our view, it cannot act as a
precedent for subsequent cases such as the present one with which we are
dealing.
4. Although the obiter dictum of the
Supreme Court is binding on all courts, it has only persuasive authority as far
as the Supreme Court itself is concerned.
5. The decision is an authority for
what is specifically decides and not what can logically be deduced therefrom.
6. Declaration of the law by the
Supreme Court can be said to have been made only when it is contained in a
speaking order, either expressly or by necessary implication and not by
dismissal in limine.
“The
order not passed on the basis of any reasoning or a deduction made on the
issue. Thus, there was no discernible ratio decidendi in the said order,
the court said. It emphasised that in the absence of any deduction or reasoning
or analysis, the order cannot carry precedential value so as to be binding on
the Supreme Court in a subsequent case. However, the said order would bind the
parties to the case, the court added.”
The ratio
decidendi has a binding effect meanwhile the obiter dictum is of persuasive
effect.
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