Precedent As A Source of Law
Precedent As A Source of Law
decision which contains its principles. The stated principle which thus
forms its authoritative element is called the ratio decidendi. The concrete
decision is thus binding between the parties, but it is the abstract ratio
decidendi which alone has the force of law as regards the world at large.”
The appellate system which has been structured on the common law
pattern of the hierarchy of competent courts, the doctrine of precedents
can be considered as a vigilant omnipresence. The relevance of precedent
as a guide to judicial decision making remains as undisputed in the
present day as it was more than a hundred and forty years ago when Lord
Campbell called attention to the importance of the binding effect of
the ratio decided in A.G. v. Dean.
Some works on the Supreme Court and judges of the Supreme Court
advertised that the Indian Supreme Court is lacking ‘unprecedented
consciousness’. It is said that there have been activist judges in the court
who have often enough refused to take note of the relevant precedent.
Even the non-so-activist judges, it is said, have ignored precedents that
could have been appropriately noticed and distinguished. There have
been instances of judges who on careful reconsideration have
disassociated themselves from their own earlier pronouncements.
To deny this power to the Supreme Court footing it only “finds” law but
does not “make” it, is to make ineffective the powerful instrument of
justice placed in the hands of the highest Judiciary. While the position of
the Supreme Court is subordinate to the legislature, in declaring the law,
creativity is involved. A statute is binding; but it is the statute, as
interpreted by the Supreme Court that is binding on all the other courts.
The Supreme Court is not a mere interpreter of the existing law. As a wing
of the State, it is a source of law”.
In Mohd. Ahmed Khan v. Shah Bano Begum it was held that the Supreme
Court’s interpretation of religious texts is a binding precedent. The apex
court, after finding out the important rights of Muslim divorced women
who were not there properly in the original texts or any other material,
upheld the same.
Precedents serve to supplement and bridge the gaps in the legal system
where they’re required. Hence, precedents can lay down a rule or law but
cannot alter already established laws. Since these judicial precedents are
given by judges, who are experts in law, they are generally presumed to
be right, and it is on this basis that precedents have an element of
authority attached to them. Hence, the doctrine of precedent refers to the
authoritative nature of the precedents, which obligates the courts to apply
precedent in cases where the material facts of the case are similar to
those of the precedent case.
The rule of precedent has been adopted from English jurisprudence into
the Indian Constitution. Article 141 of the Constitution stipulates that “the
law declared by the Supreme Court shall be binding on all Courts within
the territory of India”.
The English Common Law system is widely built upon the judicial
precedents decided by the House of Lords and, currently, the English
Courts. With the establishment of Mayor’s Courts by the British East India
Company in 1726, the use of judicial precedents was introduced in India.
In 1935, through the enactment of the Government of India Act, 1935,
judicial precedents were finally given statutory recognition. Section 212 of
the 1935 Act declared that the laws and precedents made by the Privy
Council and the Federal Court shall be binding on all the decisions taken
by Indian Courts. After independence, when our Constitution came into
force in 1950, Article 141 was enforced, which strengthened the status of
judicial precedents in the Indian legal system. It established that all the
laws or rules made by the Supreme Court shall be binding on all the other
lower courts. However, there was ambiguity regarding whether the
Supreme Court would be bound by its own precedents or not. Referring to
the English courts, initially, both the subordinate courts and the House of
Lords themselves were bound by the decisions taken by the House of
Lords. But later, in the case of Boys v. Chaplin (1967), it was ruled that the
House of Lords would not be bound by its decisions. In India, in the case
of Bengal Immunity Co. v. State of Bihar, 1955, the question of whether
‘all courts’ included the Supreme Court was resolved. The Court remarked
that “there is nothing in the constitution that prevents SC from departing
from its own decisions, if it is satisfied of its errors and of the beneficial
interest of the general public.” Thus, the Supreme Court is not strictly
bound by its own decisions.
Obiter dicta are statements that are not central to any kind of legal
reasoning or application of law but rather are used as an instrument of
persuasion by the judges. They provide insights into the thought process
of the judges and gain their views and opinions on a certain legal point. At
times, one can even find suggestions or judges calling out the defects in a
certain law through these obiter dicta. However, even these views,
suggestions, and explanations into broader concepts of law can be given
by the judges only if they are strictly relevant to the case in hand and
when they feel a need to speak out for the sake of the public.
“What is binding is the ratio of the decision and not finding on facts, or the
opinion of the Court on any question which was not required to be decided
in a particular case. The law that will be binding under Article 141 would
extend only to the observations on the points raised and decided by the
Court in a case. Therefore, as a matter of practice, the court does not
make any pronouncement, particularly in Constitutional matters, on the
points not directly raised for its decision. The general principle of law laid
down by the Supreme Court is applicable to every person including those
who are not a party to that order.
In this background, the following are some of the areas identified by the
researcher to determine the scope of research and of the doctrine of
precedents under the Constitutional framework of India.
Types of precedents
For example, in the English legal system, only the decisions of the
superior courts of justice are authoritative precedents whereas in
American, Canadian, or Irish courts the decisions laid out are merely
persuasive precedents.
Conditional precedents are those that have the authority to bind the
court’s decision, but under certain exceptions or special cases, they can
be disregarded. This happens when certain legal decisions are
inconsistent with law and reason and are not well-settled; hence, the
judges are at liberty to dissent from or overrule them and make a new law.
However, should they overrule a conditional precedent, they must keep in
mind not to make the law uncertain.
For example, the decisions ruled by the House of Lords are absolutely
binding on the subordinate courts of England. In India, the decision of a
single bench of a high court is only conditionally binding on the other high
courts and subordinate courts, and it can be overruled or dissented by
another judge or a division bench of the same or different High Court.
Both declaratory and original precedents have equal legal authority and
have a value of their own.
2. The Supreme Court is not bound by it’s own decisions, and it has the
liberty to depart from them if necessary.
3. The decision put forth by one high court does not constitute a
binding precedent over another.
4. The high courts or the other subordinate courts do not have the
power to rule out the decisions of the Supreme Court.
Abrogated decision
Ignorance of statute
A precedent ceased to have any binding authority if the court that decided
it failed to acknowledge relevant decisions given by a higher court. In this
case, the precedent will be rendered inconsistent with the decision laid
down by the higher court. For example, if the High Court of Madras
decides a case while ignoring the already existing relevant decision taken
by the Supreme Court, the decision of the High Court will become
inconsistent with the rule of the Supreme Court and hence will not bind
any other courts to follow its decision.
When there are two decisions given on a legal issue by the same court or
by different courts of the same rank that are in conflict with each other,
the court is not bound to follow them. The appellate court and other lower
courts are free to choose which decision they want to follow. It can either
follow the latest decision on the premise that it was recently decided or it
can refuse to follow it altogether on the basis of it being arrived at ‘per
incuriam’ (with carelessness or disregard for law or fact).
Erroneous decisions
In the case of Mohd. Ahmed Khan v. Shah Bano Begum, it was held that
the Supreme Court’s interpretation of religious texts is a binding
precedent. The apex court held after finding out what were the important
rights of Muslim divorced women which were not there properly in the
original texts or any other material. Such an interpretation of religious
texts by an earlier Constitutional Bench done by the apex court was held
to be binding in Danial Latifi v. Union of India.
Further, it was not open to the court for re-examining the position any
longer because already a Constitution of the Supreme Court had
accordingly declared the law after considering the Suras 241-242 of
Chapter II of the holy book of Quran and also the other relevant material
available. Moreover, the court even elaborated on the fact that the Muslim
Women ( Protection of Rights and Divorce) Act, 1986 which actually
codifies the law as stated in the Shah Bano’s case. The fundamental
purpose of the act is to allow the Muslim husband so that he can retain his
freedom of avoiding payment for maintenance to his erstwhile wife after
the divorce and also after the period of iddat.
The apex’s court decision in cases of Shah Bano case and Danail Latifi
case upholds the importance of precedent as well as the law which has
been declared by the Supreme Court by way of interpretation of the
religious texts, especially when there are several interpretations available
in order to explain the meaning of the texts.
Binding on Tribunals
The apex court had even insisted that the tribunals also must follow the
doctrine of precedent. Moreover, a tribunal is also bound by law which is
laid down by the High Court and the Supreme Court.
Judicial power
The apex court in the case of Paramjit Kaur v. The State of Punjab went a
step forward in order to expand the powers laid down under Article 141 of
the Constitution. In order to enquire about the extrajudicial killings in the
State of Punjab, the Supreme Court issued direction to the National
Human Rights Commission.
The courts over the years have been stating that if at all the Supreme
Court had a decision in which it did not declare any principles of law, but
had given the directions for the communication in special circumstances,
the High court which is subordinate should find the ratio decision given by
the apex court and also ascertain the law so declared from a careful
reading of the decision before it tends to apply in other cases.
If at all, the High Court is exercising statutory power under the criminal
law it could not assume itself the powers and jurisdiction to exercise the
function of the Supreme Court. In terms of reporting a case as though it
may be constituted as a precedent, for further guidance, it is not proper
on the part of Editors of Law Reports.
The Latin term “stare decisis” is short for the phrase “stare decisis et non
quieta movere”, which translates to “to stand by decisions and not disturb
settled matters”. Initially, the doctrine of stare decisis did not exist. Later
on, in 1833, in the case of Mirehouse v. Rennel (1833) Chief Justice Park
remarked that there is an “urgent need for recognising the binding force
of precedents”. This decision later led to the establishment of the doctrine
in the legal system of England and subsequently in India. In India, Article
141 of the Constitution recognises the doctrine of stare decisis. The
doctrine of stare decisis establishes that the subordinate courts are bound
to follow the decisions pronounced by the higher courts while dealing with
cases with similar legal issues. Essentially, its aim is to promote and
strengthen the binding nature of judicial precedents so that there can be
certainty and stability in the application of the law and in deciding legal
issues. Hence, one main function of the doctrine is to establish certainty
and coherence. In the case of Minerva Mills v. Union of India (1980), the
Supreme Court said that “certainty and continuity are the essential
ingredients of the rule of law”. It remarked that, in case a longstanding
precedent established by the Apex Court suddenly gets overruled, the
application of law would be afflicted by uncertainty and confusion.
However, certain judgements clarified what can be done in case a Bench
does not agree with the decision of another Bench. In the case
of Sheshamma v. Venkata Rao (1940), the Madras High Court held that if
one Division Bench does not accept the decision of another pertaining to a
question of law, then the matter should be referred to a Full Bench. This
was reiterated again in the case of Yedlapat Venkateswarlu v. State of
Andhra Pradesh (1978), where the High Court said that one Bench should
not proceed to express contrary views to those of another Division Bench
without referring the matter to a Full Bench first.
The apex court in the catena of cases stated that “ when a precedent is
recognized for a long period of time it matures into a stare decisis. The
Supreme Court explained “it is not everything stated by a Judge while
pronouncing a judgment that constitutes a precedent, the only thing in
the decision binding upon the lower courts or a party is a principle on
which the case has been decided. Therefore for a reason, it is pertinent to
analyze the decision and isolate it from the ratio decidendi. According to
the well-settled principles of the law, there are three postulates that every
basic decision can comprise. They are:
Important Judgements
in the case of Paramjit Kaur v. The State of Punjab went a step forward in
order to expand the powers laid down under Article 141 of the
Constitution. In order to enquire about the extrajudicial killings in the
State of Punjab, the Supreme Court issued direction to the National
Human Rights Commission. Therefore, the jurisdiction of such a
Commission came into question in reference to the statutory limitations
and obligations of the respective Commission. It was duly held by the
apex court that the Supreme Court referred to the matter when referred to
the commission when made in exercise of the plentitude of its appropriate
jurisdiction. The apex court accordingly held that by its orders and
directions it can confer jurisdiction on a particular body beyond the
purview of the Jurisdiction.
In Mohd. Ahmed Khan v. Shah Bano Begum, it was held that the Supreme
Court’s interpretation of religious texts is a binding precedent. The apex
court held after finding out what were the important rights of Muslim
divorced women were not there properly in the original texts or any other
material.
In this case, five accused appealed jointly to the High Court against their
conviction by the Sessions Judge under Section 410 of the CrPC. Section
419 specifies that appeals should be in the form of a written petition, and
under Section 431, these appeals are to be made separately by different
accused persons. Section 419 and related provisions allow for only
separate appeals of the accused and not joint appeals; however, a
previous Division Bench ruled that multiple convicted persons can file a
single joint appeal, and this rule is being contested here. Thus, the
question in this case pertains to whether multiple convicted individuals
should file separate appeals or a joint appeal and whether the
observations of the Supreme Court are a declaration of law binding on all
the subordinate courts under Article 141 of the Constitution. The Court
observed that the interpretation of the Division Bench allowing joint
appeal was inconsistent with the principles established by Section 419.
The Division Bench’s decision conflicted with the legal provisions of the
CrPC, and emphasised on the binding nature of the Supreme Court’s
decisions under Article 141 of the Constitution, and dismissed the validity
of filing joint criminal appeals in this case.
It was held that any judgement of the Supreme Court cannot, as such, be
taken as a precedent. In this case, the issue placed before the Bombay
High Court was whether a judgement pronounced by the Supreme Court
in which it made an observation saying that it should not be treated as a
precedent due to having unique facts and circumstances, even if issues
might be similar, should be considered binding or not. The High Court of
Bobay ruled that even though there is such an observation made by the
SC in the judgement, the facts and circumstances of both cases are
similar, hence its decision would still be treated as a precedent.
In this case, the petitioner, who was a judicial member of the Central
Administrative Tribunal, seeks relief under Article 32. He had already
completed two terms of five years each and had re-applied for the same
position due to the vacancy. But his application was rejected as he had
already completed his tenure of 10 years; this ground for rejection was
challenged by the petitioner. The Administrative Tribunals Act, 1985, was
amended in 2006, which limited the total term of a member. But in the
case of A.K. Behera v. Union of India (2010), two judges upheld the
validity of the amendment while one judge concluded it to be
unconstitutional and arbitrary. The Court upheld the decision in the
previous case and the constitutionality of the provision limiting the tenure.
It held that the precedents apply to the current case and that the
provisions do not undermine the security of tenure.
Recent judgments
Proteck India Info Services Pvt. Ltd. v. Commissioner, CGST, & Central
Excise, New Delhi (2021)
In this case, the appellant was an exporter of taxable services and also
received various services for which they paid taxes and took credit.
However, they could not use their cenvat credit because their exports
were not taxable; hence, he filed for a refund. But the appellant received a
cause notice reasoning that he had not debited the refund claim amount
from their cenvat credit at the time of filing, thereby not fulfilling the
condition laid out in No. 2(h) of the notification. The central issue in this
case revolves around the question of whether it was valid on the part of
the Commissioner to reject the refund claim due to the appellant’s failure
to debit at the time of filing. The tribunal held that the Commissioner had
misinterpreted the rule by ignoring the ruling of the Supreme Court in the
case of Hari Chand Shri Gopal & Ors (2010). and disregarded the principle
of substantial compliance laid out by the Supreme Court in that decision,
hence violating Article 141. The action of the Commissioner was held to
be a form of judicial indiscipline and a violation of Article 141 of the
Constitution. Therefore, the Commissioner’s action was held to be
incorrect, and the appeals were allowed.
R. Anitha & Ors. v. State of Telengana & Ors. (2019)
The petitioners were about to join the Telangana State Judicial Service as
Junior Civil Judges. However, their eligibility was challenged under Rule
5(2)(a)(i) of the Telangana State Judicial Service Rules of 2017 along with
a notification issued by the Registrar (Administration) of the High Court of
Telangana. The petitioners argued that the rule and notification directed
that they must have a minimum of three years experience as practising
advocates, but the Supreme Court, in its judgement in All India Judges
Association v. Union of India (2002), declared this rule to be
unconstitutional. The respondents contended that Article 235 of the
Constitution granted the High Court the authority to prescribe eligibility
criteria for the recruitment of judges. However, the High Court of
Telangana upheld the contentions of the petitioner and decided that all
the courts were duty bound to follow the decisions taken by the SC under
Article 141; hence, the imposition of the Rule by the Bar was held invalid
and unconstitutional.
Suggestions
3. The High Court must not take a different view from the view taken
by their counterparts in other states, this persuasive value attached
to the precedents needs to be minimized bypassing decisions at
High Court taken into account passed by the other High Courts.
7. While differentiating with the earlier decision, the Court must not
partially overrule a judgment but must decide on all the aspects a
fresh one, this will result in completely overruling the judgment and
there will be no place for any confusion. No partial overruling should
be done.
9. The law laid down under Article 141 of the Constitution is no less
important than the law laid down by the parliament that should be
scrupulously observed by the executive wing of the state. Thus, I
would like to conclude with the words of Chandrachud. C.J.
said in Deena v. Union of India “Any case, even a locus classicus, is
an authority for what it decides. It is permissible to extend the ratio
of a decision to cases involving identical situations, factual and
legal, but care must be taken to see that this is not done,
mechanically, that is, without a close examination of the rationale of
the decision cited by the precedent”.