Sunday, May 24, 2020

Precedents & those Binding Precedents

INTRODUCTION 

Article 141. The law declared by the Supreme Court shall be binding on all courts within the territory of India.

Binding force of judgement

Precedent is binding for what is explicitly decides and no more, the decision is an authority for what it decides and not for what can be logically deducted therefrom. A slight distinction of facts or additional facts may sometime make a lot of difference. A slightest deviation in one circumstance becomes a precedent for another. The words in a judgement are not used after weighing the pros and cons of all conceivable permutation and combinations of situations that may arise.

In a Constitution Bench judgment in Union of India vs. Raghubir Singh (1989) 2 SCC 754, Chief Justice Pathak [as His Lordship then was] observed as under : "The doctrine of binding precedent has the merit of promoting a certainty and consistency in judicial decisions, and enables an organic development of the law, besides providing assurance to the individual as to the consequence of transactions forming part of his daily affairs. And, therefore, the need for a clear and consistent enunciation of legal principle in the decisions of a Court."


1.      Broadly speaking, every judgment of superior courts has three segments, namely, (i) the facts and the point at issue; (ii) the reasons for the decision; and (iii) the final order containing the decision. It is the ratio decidendi [reasons for the decision] of a judgment and not the final order in the judgment, which forms a precedent.

2.      What is binding is the ratio of the decision and not any finding of facts. It is the principle found out upon a reading of a judgment as a whole, in the light of the questions before the Court that forms the ratio and not any particular word or sentence. A judgment of the Court has to be read in the context of questions which arose for consideration in the case in which the judgment was delivered.

3.      It is not everything said by a judge while giving judgment, constitutes a precedent. The enunciation of the reason or principle on which a question before the court has been decided, is alone binding as a precedent.

4.      A judgment should be understood in the light of the facts of that case, and no more should be read into it than what it actually says.

5.      Every judgment to qualify to be a precedent should invariably answer an issue of law; and a decision is available as a precedent only if it decides a question of law.

6.      The only thing binding as an authority upon a subsequent judge is the principle upon which the case was decided.

7.      It is well settled that a decision of the Apex Court based on specific facts does not operate as a precedent for future cases. Only the principles of law that emanate from a judgment of the Court, which have aided in reaching a conclusion of the problem, are binding precedents within the meaning of Article 141.

8.      The expression “declared” in Article 141 of the Constitution is wider than the words “found or made”. To declare is to announce opinion. Interpretation, ascertainment and evolution are parts of the process, while that interpreted, ascertained or evolved is declared as law.

AIR 2004 SC 2890 Mahmood Dawood Sheikh vs. State of Maharashtra (2 judges)

Para 13: That being so, the Judgment in Harjeet Singh's case (supra) does not in any assist the appellant. There is no such thing as a judicial precedent on facts though counsel, and even Judges, are sometimes prone to argue and to act as if they were, said Bose J. about half century back in Willie (William) Slaney vs. The State of Madhya Pradesh, (1955(2) SCR 1140 at page 1169).

A decision is available as a precedent only if decides a question of law. A Judgement should be understood in the light of facts of that case and no more should be read into it than what it actually says. It is neither desirable nor permissible to pick out a word or a sentence from the Judgement of this Court divorced from the context of the question under consideration and treat it to be complete law decided by this Court. The Judgement must be read as a whole and the observations from the Judgement have to be considered in the light of the questions which were before this Court.


HOW THE LAW IS DECLARED OR LAID DOWN


AIR 1992 SC 1593 State of Punjab vs. Surindra Kumar (3 judges)

Para 6: A decision is available as a precedent only if it decides a question of law.


[(2012) 3 SCC 387] Sudebanand vs. State through CBI (2 judges)

Para 28: Now, the interpretation of a legal provision and its application to a set of facts are two different exercises requiring different approaches.

28.1: "Interpretation" means the action of explaining the meaning of something. For interpreting a statutory provision, the court is required to have an insight into the provision and unfold its meaning by means of the well-established canons of interpretation, having regard to the object, purpose, historicism of the law and several other well-known factors. But, what is important to bear in mind is that the interpretation of a legal provision is always independent of the facts of any given case.

28.2: "Application" means the practical use or relevance (of something to something); the application of a statutory provision, therefore, is by definition case related and as opposed to interpretation, the application or non-application of a statutory provision would always depend on the exact facts of a given case. Anyone associated with the process of adjudication fully knows that even the slightest difference in the facts of two cases can make a world of difference on the question whether or not a statutory provision can be fairly and reasonably applied to it.

AIR 1991 SC 101 (Constitution Bench of Five Judges) DTC vs. DTC Majdoor Congress

The expression “declared” is wider than the words “found or made”. To declare is to announce opinion. Indeed the latter involves the process, while the former expresses the result. Interpretation, ascertainment and evolution are parts of the process, while that interpreted, ascertained or evolved is declared as law.


(2003) 6 SCC 697 [Constitution Bench of Five Judges] Islamic Academy of Education vs. State of Karnataka & Ors.

Para 2: The ratio decidendi of a judgment has to be found out only on reading the entire judgment. In fact, the ratio of the Judgement is what is set out in the Judgement itself. The answer to the question would necessarily have to be read in the context of what is set out in the Judgement and not in isolation. In case of any doubt as regards any observations, reasons and principles, the other part of the Judgement has to be looked into. By reading a line here and there from the judgment, one cannot find out the entire ratio decidendi of the judgment.

Para 139: A judgment, it is trite, is not to be read as a statute. The ratio decidendi of a Judgement is its reasoning which can be deciphered only upon reading the same in its entirety. The ratio decidendi of a case or the principles and reasons on which it is based is distinct from the relief finally granted or the manner adopted for its disposal. [SeeExecutive Engineer, Dhenkanal Minor Irrigation Division, Orissa and Ors vs. N.C. Budharaj (Deceased) By LRs. and Ors]

Para 143: It will not, therefore, be correct to contend, as has been contended by Mr. Nariman, that answers to the questions would be the ratio to a judgment. The answers to the questions are merely conclusions. They have to be interpreted, in a case of doubt or dispute with the reasons assigned in support thereof in the body of the judgment, wherefore, it would be essential to read the other paragraphs of the Judgement also. It is also permissible for this purpose (albeit only in certain cases and if there exist strong and cogent reasons) to look to the pleadings of the parties.


2007 (3) SCC 720 (Three Judges Bench) Sanjay Singh & Ors. vs. UPSC & Ors.

Para 10: Broadly speaking, every judgment of superior courts has three segments, namely, (i) the facts and the point at issue; (ii) the reasons for the decision; and (iii) the final order containing the decision. It is the ratio decidendi of a judgment and not the final order in the judgment, which forms a precedent.


2011 (12) SCC 615 (Two judges Bench) Fida Hussain vs. Moradabad Development Authority

Para 18. In the case of Director of Settlements, A.P. vs. M.R. Apparao, (2002) 4 SCC 638, this Court held:

"7. So far as the first question is concerned, Article 141 of the Constitution unequivocally indicates that the law declared by the Supreme Court shall be binding on all courts within the territory of India. The aforesaid Article empowers the Supreme Court to declare the law. It is, therefore, an essential function of the Court to interpret a legislation. The statements of the Court on matters other than law like facts may have no binding force as the facts of two cases may not be similar. But what is binding is the ratio of the decision and not any finding of facts. It is the principle found out upon a reading of a judgment as a whole, in the light of the questions before the Court that forms the ratio and not any particular word or sentence... A judgment of the Court has to be read in the context of questions which arose for consideration in the case in which the judgment was delivered. ... The law which will be binding under Article 141 would, therefore, extend to all observations of points raised and decided by the Court in a given case..."

20. It is now well settled that a decision of this Court based on specific facts does not operate as a precedent for future cases. Only the principles of law that emanate from a judgment of this Court, which have aided in reaching a conclusion of the problem, are binding precedents within the meaning of Article 141. However, if the question of law before the Court is same as in the previous case, the judgment of the Court in the former is binding in the latter, for the reason that the question of law before the Court is already settled. In other words, if the Court determines a certain issue for a certain set of facts, then, that issue stands determined for any other matter on the same set of facts.


[(1990) 3 SCR 352] Five Judges Bench – Krishna Kumar vs. Union of India

It was observed that the enunciation of the reason or principle upon which a question before a Court has been decided is alone binding as a precedent, and the ratio decidendi is the underlying principle, namely, the general reasons or the general grounds upon which the decision is based on the test or abstract the specific pecularities of the particular case which gives rise to the decision.



PRECEDENTS – JUDGMENTS DELIVERED BY SINGLE BENCH – DIVISION BENCH – CONSTITUTION BENCH ETC.

Siddharam Satlingappa Mhetre vs. State of Maharashtra and Ors (2011) 1 SCC 694 –The judgment of a larger strength is binding not only on a judgment of smaller strength but the judgment of a co-equal strength is also binding on a Bench of Judges of co-equal strength.


A three-Judge Bench of this Court in Official Liquidator vs. Dayanand and Ors (2008) 10 SCC 1 again reiterated the clear position of law that by virtue of Article 141 of the Constitution, the judgment of the Constitution Bench in State of Karnataka and Others vs. Umadevi (3) and Others (2006) 4 SCC 1 is binding on all Courts including this Court till the same is overruled by a larger Bench.

Para 60 …. Likewise, there have been instances in which smaller Benches of this Court have either ignored or bypassed the ratio of the judgments of the larger Benches including the Constitution Benches. These cases are illustrative of non-adherence to the rule of judicial discipline which is sine qua non for sustaining the system.

Para 65. ……….The learned Attorney-General submitted that a Constitution Bench judgment of this Court was binding on smaller Benches and a judgment of three learned Judges was binding on Benches of two learned Judges -- a proposition that learned counsel for the appellants did not dispute.

…..In our view, judicial discipline and propriety demands that a Bench of two learned Judges should follow a decision of a Bench of three learned Judges.

Para 66 ……"the law laid down in a decision delivered by a Bench of larger strength is binding on any subsequent Bench of lesser or co-equal strength and it would be inappropriate if a Division Bench of two Judges starts overruling the decisions of Division Benches of three Judges. The Court further held that such a practice would be detrimental not only to the rule of discipline and the doctrine of binding precedents but it will also lead to inconsistency in decisions on the point of law; consistency and certainty in the development of law and its contemporary status - both would be immediate casualty"


In the case of P. Ramachandra Rao vs. State of Karnataka, a 7 Judges Bench of the Apex court, in respect of doctrine of precedents, observed to say that –

The well settled principle of precedents which has crystallized into a rule of law is that a bench of lesser strength is bound by the view expressed by a bench of larger strength and cannot take a view in departure or in conflict therefrom. (Para 29)


AIR 2011 SC 421 [two judges bench] Safiya Bee vs. Mohd. Vajahath Hussain

In Central Board of Dawoodi Bohra Community and Anr. vs. State of Maharashtra and Anr. [(2005) 2 SCC 673], (para 12), a Constitution Bench of this Court summed up the legal position in the following terms :

"(1) The law laid down by this Court in a decision delivered by a Bench of larger strength is binding on any subsequent Bench of lesser or co-equal strength.

(2) A Bench of lesser quorum cannot disagree or dissent from the view of the law taken by a Bench of larger quorum. In case of doubt all that the Bench of lesser quorum can do is to invite the attention of the Chief Justice and request for the matter being placed for hearing before a Bench of larger quorum than the Bench whose decision has come up for consideration. It will be open only for a Bench of co-equal strength to express an opinion doubting the correctness of the view taken by the earlier Bench of co-equal strength, whereupon the matter may be placed for hearing before a Bench consisting of a quorum larger than the one which pronounced the decision laying down the law the correctness of which is doubted.

(3) The above rules are subject to two exceptions : (i) The above said rules do not bind the discretion of the Chief Justice in whom vests the power of framing the roster and who can direct any particular matter to be placed for hearing before any particular Bench of any strength; and

(ii) In spite of the rules laid down herein above, if the matter has already come up for hearing before a Bench of larger quorum and that Bench itself feels that the view of the law taken by a Bench of lesser quorum, which view is in doubt, needs correction or reconsideration then by way of exception (and not as a rule) and for reasons given by it, it may proceed to hear the case and examine the correctness of the previous decision in question dispensing with the need of a specific reference or the order of Chief Justice constituting the Bench and such listing."

The above principles and norms stated with reference to the Supreme Court are equally relevant and applicable to the High Court also.


DOCTRINE OF PRECEDENTS VIS A VIS TO DOCTRINE OF STARE DECISIS


[AIR 2001 SC 8] [2 JUDGES] SAURASHTRA CEMENT AND CHEMICAL vs. UOI

Para 32. On the other count Mr. Chidambaram's submission pertaining to delegated legislation in taxing statute however, does not call for any detail discussion since the authority of the legislature in introducing the Act of 1957 cannot be doubted in any way and in any event is a settled proposition of law for more than a decade and it is on this score that the doctrine of stare decisis has its due application in the contextual facts and in this context the decision of this Court in Mishri Lal's case, (Mishri Lal (d) by L.Rs. vs. Dhirendra Nath (d) by L.Rs., (1999) 4 SCC 11 : (1999 AIR(SCW) 2350 : AIR 1999 SC 2286) seem to be rather apposite. This Court observed :

11. It is further to be noted that Meharban Singh's case, (AIR 1971 SC 77) came to be decided as early as 1970 and has been followed for last three decades in the State of Madhya Pradesh and innumerable number of matters have been dealt with on the basis thereof and in the event, a different view is expressed today, so far as this specific legislation is concerned, it would unsettle the situation in the State of Madhya Pradesh and it is on this score also that reliance on the doctrine of 'stare decisis' may be apposite. While it is true that the doctrine has no statutory sanction and the same is based on a Rule of convenience and expediency and as also on 'Public Policy' but in our view, the doctrine should and ought always to be strictly adhered to by the Courts of law to sub-serve the ends of justice.

12. This Court in Maktul vs. Mst. Manbhari, 1959 SCR 1099 , explained the scope of the doctrine of stare decisis with reference to Halsbury's Laws of England and Corpus Juris Secundum in the manner following :-

"The principles of 'Stare Decisis' is thus stated in Halsbury's Laws of England :
"Apart from any question as to the Courts being of co-ordinate jurisdiction, a decision which has been followed for a long period of time, and has been acted upon by persons in the formation of contracts or in the disposition of their property, or in the general conduct of affairs, or in legal procedure or in other ways, will generally be followed by Courts of higher authority than the Court establishing the rule, even though the Court before whom the matter arises afterwards might not have given the same decision had the question come before it originally. But the supreme appellate Court will not shrink from overruling a decision, or series of decisions, which establish a doctrine plainly outside the statute and outside the common law, when no title and no contract will be shaken, no persons can complain, and no general course of dealing be altered by the remedy of a mistake".

The same doctrine is thus explained in Corpus Juris Secundum :-
"Under the stare decisis rule, a principle of law which has become settled by a series of decisions generally is binding on the Courts and should be followed in similar cases. This rule is based on expediency and public policy, and, although generally it should be strictly adhered to by the Courts, it is not universally applicable."

13. Be it noted however that Corpus Juris Secundum, adds a rider that "previous decisions should not be followed to the extent that grievous wrong may result; and, accordingly, the Courts ordinarily will not adhere to a rule or principle established by previous decisions which they are convinced is erroneous. The rule of stare decisis is not so imperative or inflexible as to preclude a departure therefrom in any case, but its application must be determined in each case by the discretion of the Court, and previous decisions should not be followed to the extent that error may be perpetuated and grievous wrong may result.

14. The statement though deserves serious consideration in the event of a definite finding as to the perpetration of a grave wrong but that by itself does not denude the time tested doctrine of Stare Decisis its efficacy".

Para 33. The two English decisions (Admiralty Commrs. vs. Valverda Owners, (1938) AC 173 at 194 and Button vs. Director of Public Prosecution, Swain vs. Director of Public Prosecutions, (1966) AC 591 also sound a similar note.

Para 34 Recently Paripoornan, J. in Kattite Valappil Pathumma vs. Taluk Land Board, (1997) 4 SCC 114 : (1997 AIR(SCW) 1142 : AIR 1997 SC 1115) in paragraph 18 observed :

"We are further of the view, that even if another view is possible, we are not inclined to take a different view at this distance of time. Interpretation of the law is not a mere mental exercise. Things which have been adjudged long ago should be allowed to rest in peace. A decision rendered long ago can be overruled only if this Court comes to the conclusion that it is manifestly wrong or unfair and not merely on the ground that another interpretation is possible and the Court may arrive at a different conclusion. We should remember that the law laid down by the High Court in the above decision has not been doubted so far. The Act in question is a State enactment. These are weighty considerations to hold that even if a different view is possible, if it will have the effect of upsetting or reopening past and closed transactions or unsettling titles all over the State, this Court should be loathe to take a different view. On this ground as well, we are not inclined to interfere with the Judgement under appeal."

Para 35. On the wake of the aforesaid, we do feel it expedient to record that taking recourse to the doctrine as above would be an imperative necessity, so to avoid uncertainty and confusion, since the basic feature of law is its certainty and in the event of any departure therefrom the society would be in utter confusion and the resultant effect of which would be legal anarchy and judicial indiscipline - a situation which always ought to be avoided. The central legislature introduced the legislation (MMRD Act) in the year 1957 and several hundreds and thousands of cases have already been dealt with on the basis thereof and the effect of a declaration of a contra law would be totally disastrous affecting the very basics of the revenue jurisprudence. It is true that the doctrine has no statutory sanction but it is a rule of convenience, expediency; prudence and above all the public policy. It is to be observed in its observance rather than in its breach to serve the people and subserve the ends of justice.



2011 (2) SCC 132 [2 JUDGES] SHANKER RAJU vs. UOI

Para 9. It is a settled principle of law that a judgment, which has held the field for a long time, should not be unsettled. The doctrine of stare decisis is expressed in the maxim "stare decisis et non quietamovere", which means "to stand by decisions and not to disturb what is settled." Lord Coke aptly described this in his classic English version as "those things which have been so often adjudged ought to rest in peace." The underlying logic of this doctrine is to maintain consistency and avoid uncertainty. The guiding philosophy is that a view which has held the field for a long time should not be disturbed only because another view is possible. This has been aptly pointed out by Chandrachud, C.J. in Waman Rao vs. Union of India, (1981) 2 SCC 362 at pg. 392 thus:

"40. ... for the application of the rule of stare decisis, it is not necessary that the earlier decision or decisions of longstanding should have considered and either accepted or rejected the particular argument which is advanced in the case on hand. Were it so, the previous decisions could more easily be treated as binding by applying the law of precedent and it will be unnecessary to take resort to the principle of stare decisis. It is, therefore, sufficient for invoking the rule of stare decisis that a certain decision was arrived at on a question which arose or was argued, no matter on what reason the decision rests or what is the basis of the decision. In other words, for the purpose of applying the rule of stare decisis, it is unnecessary to enquire or determine as to what was the rationale of the earlier decision which is said to operate as stare decisis."

10 In Manganese Ore (India) Ltd. vs. Regional Asstt. CST, (1976) 4 SCC 124, at page 127, it was opined that the doctrine of stare decisis is a very valuable principle of precedent which cannot be departed from unless there are extraordinary or special reasons to do so.

11 In Ganga Sugar Corpn. vs. State of U.P., (1980) 1 SCC 223 at page 233, this Court cautioned that, "the Judgments of this Court are decisional between litigants but declaratory for the nation." This Court further observed:
"28. ... Enlightened litigative policy in the country must accept as final the pronouncements of this Court... unless the subject be of such fundamental importance to national life or the reasoning is so plainly erroneous in the light of later thought that it is wiser to be ultimately right rather than to be consistently wrong. Stare decisis is not a ritual of convenience but a rule with limited exceptions."

12 In Union of India vs. Raghubir Singh, (1989) 2 SCC 754, at page 766, this Court has enunciated the importance of doctrine of binding precedent in the development of jurisprudence of law:
"8. Taking note of the hierarchical character of the judicial system in India, it is of paramount importance that the law declared by this Court should be certain, clear and consistent. It is commonly known that most decisions of the courts are of significance not merely because they constitute an adjudication on the rights of the parties and resolve the dispute between them, but also because in doing so they embody a declaration of law operating as a binding principle in future cases. In this latter aspect lies their particular value in developing the jurisprudence of the law.
9. The doctrine of binding precedent has the merit of promoting a certainty and consistency in judicial decisions, and enables an organic development of the law, besides providing assurance to the individual as to the consequence of transactions forming part of his daily affairs. And, therefore, the need for a clear and consistent enunciation of legal principle in the decisions of a court."

13 In Krishena Kumar vs. Union of India, (1990) 4 SCC 207, at page 233, this Court has explained the meaning and importance of sparing application of the doctrine of Stare Decisis:

"33. Stare decisis et non quietamovere. To adhere to precedent and not to unsettle things which are settled. But it applies to litigated facts and necessarily decided questions. Apart from Article 141 of the Constitution of India, the policy of courts is to stand by precedent and not to disturb settled point. When court has once laid down a principle of law as applicable to certain state of facts, it will adhere to that principle, and apply it to all future cases where facts are substantially the same. A deliberate and solemn decision of court made after argument on question of law fairly arising in the case, and necessary to its determination, is an authority, or binding precedent in the same court, or in other courts of equal or lower rank in subsequent cases where the very point is again in controversy unless there are occasions when departure is rendered necessary to vindicate plain, obvious principles of law and remedy continued injustice. It should be invariably applied and should not ordinarily be departed from where decision is of long standing and rights have been acquired under it, unless considerations of public policy demand it."

14 In Union of India &Anr. vs. Paras Laminates (P) Ltd, (1990) 4 SCC 453 at pg. 457, this Court observed as under :-

"9. It is true that a bench of two members must not lightly disregard the decision of another bench of the same Tribunal on an identical question. This is particularly true when the earlier decision is rendered by a larger bench. The rationale of this rule is the need for continuity, certainty and predictability in the administration of justice. Persons affected by decisions of tribunals or courts have a right to expect that those exercising judicial functions will follow the reason or ground of the judicial decision in the earlier cases on identical matters".

It has been opined that in the absence of a strict rule of precedent, litigants would take every case to the highest court, in spite of a ruling to the contrary, in the hope that the decision may be overruled.

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