📖 Book 12 - Chapter 153
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Judicial Precedents”  
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(..4 b..)  
Sources of Law  
JUDICIAL PRECEDENTS  
QUESTION BANK  
Q.1  
Q.2  
State the essential of valid Precedent.  
What do you understand by custom? What are the essential requisite of a valid  
Precedent?.  
Q.3  
“What Precedent is to society law is to State”, comment.  
SHORT NOTES  
1. Judicial Precedent.  
SYNOPSIS  
I. Introduction to Precedent-  
II Meaning- 1) According to Salmond-, 2) According to Keeton-  
III Importance of Precedent-  
1) Keeps uniformity in legal system-  
2) Provides useful guidance-  
3) Saves labour and time of judges and advocate-  
4) Shapes laws to fit ground realities-  
5) Provides flexibility-  
6) Clear legal point is made known in advance-  
7) Easy to understand-  
8) Precedent is perfect law-  
9) Older source of law-  
IV Disadvantages of precedent-  
1) Practically difficult –  
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2) Lacks binding force of State-  
3) Incomplete-  
4) Overlooks rule of natural justice-  
5) Conflicting Judgment-  
6) No standard to determine validity of precedent-  
7) Erroneous decisions create practical problem –  
8) Position of Doctrine of Precedent-  
Precedent in England-  
Rule of Precedent in India-  
Doctrine of Precedent is set out in Indian Constitution.  
Supreme Court of India-  
High Courts-  
Binding force of the decisions of Federal Court and of Privy Council:-  
VI) Ratio decidendi and obiter dicta-  
Ratio Decidendi-  
Obiter Dicta-  
Circumstances weakening or destroying binding force of precedent-  
1) Overruling  
2) Legislation-  
3) Decision in ignorance of Statute-  
4) Decision of High Court inconsistent with Supreme Court -  
5) When Judges are equally divided-  
6) Erroneous decisions-  
8) Affirmation or reversal on a different grand-  
VII) Theories of Precedent -  
1) The Declaratory theory of Precedent-  
2) Judges make law-  
Conclusion  
I. Introduction to Precedent-  
Judicial precedent or precedent is an important source of law. It is a distinguishing  
feature of the English Legal System because most of the common law is unwritten and  
owes its origin to judicial precedents.  
Precedent has a binding force on courts to decide like the case in a similar manner.  
It brings uniformity and equality to the legal system; before the legislature, as a sovereign  
body emerged in recent times, it was the judiciary which used to define laws and apply  
them in the administration of justice. Therefore, it is being said that English law is mostly  
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Judge made. Most of the common law countries owe the origin of their laws to English  
Common Law, i.e. Judge Made Law. The Law of Judicial Precedent was also known as  
early Roman Law. Precedent as a source of law developed after custom.  
II Meaning-  
Ordinarily, a ‘precedent’ means a ‘previous instance or case which may be taken as  
an example or rule for subsequent case having similar facts'.  
1) According to Salmond-  
According to Salmond doctrine of precedent is used in two senses-  
First, in its broad sense, ‘precedent’ is “a decision of any court cited as authority for  
deciding similar facts on that principle”.  
Thus, according to this sense, any past judgment of any court. Whether it is higher,  
lower, Indian or foreign court can be cited in the present case having some analogy or  
similar facts as a precedent. Secondly, in its narrow sense, precedent means that case law  
(probably of higher courts) which not only has a great binding authority but must also be  
followed.  
2) According to Keeton-  
“A judicial precedent is a judicial decision to which authority has, in some measure,  
been attached”.  
In short, precedent is guidance or authority of past decisions for future cases.  
III. Importance of Precedent-  
Precedent has a prominent place in legal practice; it is because of the following  
reasons.  
1) Keeps uniformity in the legal system-  
Being binding on a subordinate judiciary, the doctrine of precedent keeps uniformity  
in the legal system. It curtails the discretion of judges to decide cases at their whim. The  
precedent sets a legal position as to a particular point of law, which all courts need to  
follow.  
2) Provides useful guidance-  
The precedent, is based on vast experience, maturity and diligence (specifically of the  
higher judiciary), guides the subordinate judiciary on a particular point of law.  
3) Saves labour and time of judges and advocates-  
The precedent being refined and settled legal position saves labour and time of judges  
and Advocates in searching for correct legal possession on a particular point of law.  
4) Shapes laws to fit ground realities-  
Precedent shapes law enacted by legislatures to the actual realities of practice.  
Legislatures may make laws in Houses, whereas judges apply them in practice. Therefore,  
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precedent shapes law according to ground reality and problems which the legislature may  
not experience. (Keshavanand Bharti’s1 case brought the doctrine of ‘basic structure’ into  
practice)  
5) Provides flexibility-  
To fit actual problems in implementing laws in practice, precedent moulds laws  
(made by the legislature). Moreover, precedent can also be changed by the higher judiciary;  
therefore, it provides flexibility in the judicial system, e.g. case of Manika Gandhi changed  
the trend set by A.K. Gopalan’s Case.  
6) Clear legal point is made known in advance-  
Precedent settles legal position crystal clear on particular law point (involved in that  
case). Therefore, in advance, it provides knowledge to Advocates and parties as to what is  
correct legal possession in subsequent cases on similar points or facts. Thus, precedent  
makes known the exact legal position in advance.  
7) Easy to understand-  
Being related to and involved in facts, precedent is easy to understand by reading cases.  
8) Precedent is perfect law-  
Compared to the law made by the legislature, judge-made precedent is crystallized  
and perfect.  
9) Older source of law-  
The practice of judge-made law of precedent is older than legislation which is of  
recent origin.  
The advantages of precedent are the binding force of the doctrine of precedent.  
IV Disadvantages of precedent-  
1) Practically difficult –  
High Courts and Supreme Court daily pronounce a number of judgments, and they  
are reported by a number of reporters; therefore, it becomes very difficult to find out the  
exact case law applicable to the case at hand.  
2) Lacks binding force of State-  
According to Bentham, precedent is not law because it lacks the binding force of  
the State. However, according to Austin, ‘Judges are agents of sovereignty; therefore, the  
law pronounced by them is good law’.  
In fact, in India “Judiciary” gets recognition from the sovereign constitution. Therefore,  
undoubtedly, Judiciary is a sovereign wing, and the rule of precedent has got recognition  
in Art. 141, therefore, has a binding force.  
3) Incomplete-  
1 Keshavananda Bharati v. State of Kerala AIR 1973 SC 1461.  
 
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According to Sir Fredric Pollock, the law based on the case law is incomplete  
because it is pronounced only on particular facts and points of law involved in that case.  
4) Overlooks rule of natural justice-  
Some jurists like Bentham object that the law of precedent overlooks the rule of  
natural justice. i.e. law must be known before it is actually enforced. However, precedent  
comes into existence after the problem comes before a court.  
5) Conflicting Judgments-  
In a number of cases, we find conflicting judgments of higher courts. In such  
circumstances, it becomes very difficult to follow any particular judgment as a precedent.  
Specifically, in criminal matters, one can find a number of conflicting judgments of higher  
courts.  
6) No standard to determine the validity of precedent-  
There exists no standard to determine the validity of law made by case law.  
7) Erroneous decisions create practical problems –  
Erroneous decisions create practical problems for the subordinate judiciary because  
howsoever bad such judgment may be, the lower judiciary has to follow it.  
8) Position of Doctrine of Precedent-  
Precedent in England-  
The doctrine of precedent is well-settled in England. The common law of England  
is an outcome of judicial precedent. By the doctrine of precedent, the inferior courts are  
bound by the decisions of superior courts.  
House of Lords is the highest court in England. As a precedent, the decisions of the  
House of Lords are binding on all courts in England. Moreover, its decisions were binding  
on itself. Therefore, even the House of Lords was bound by its own decisions.  
However, in Boys V. Chaplin,2 the trend changed, and now the House of Lords is  
held not to be binding by its own decisions.  
Below the House of Lords, there are ‘The Court of Appeal’ and ‘The Court of  
Criminal Appeal’. Both these courts are bounded by the decisions of the House of Lords  
and by their own decisions. But their decisions are not binding on each other because both  
these Appellate Courts are of co-ordinate jurisdiction.  
Below courts of appeal, there are High courts; High courts are bound by the  
decisions of the Hose of Lords, both courts of appeal and by their own decisions.  
Rule of Precedent in India-  
The rule of precedent was first time recognised in India by S. 212 of the Government  
of India Act 1935. By virtue of this section law declared (judgment) by the Federal Court  
2 1968 AIR 273  
 
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and Privy Council was binding on all courts in British India. The position continued till  
coming into force of the Indian Constitution in 1950. The hierarchy of courts and Doctrine  
of Precedent is set out in the Indian Constitution.  
The constitution sets out the hierarchy of the Indian Courts; at the apex level, there  
is a Supreme Court which sits in Delhi; below it, there is a number of High Courts situated  
in the respective States of India; below the High courts, there are District and Session  
Courts, below it, there are Magistrates (for the trial of criminal matters) and Civil Courts  
or Munsif’s Courts (to try civil cases).  
Supreme Court of India-  
Art. 141 of the Constitution provides that the law declared by the Supreme Court  
shall be binding on all courts within the territory of India  
Thus, the law declared (Judgments delivered) by the Supreme Court is binding on all  
courts within India. In Dworkadas V. Solapure Spinning and Weaving company,3  
Supreme Court expressed its view for the first time that if the previous decision of the  
Supreme Court appears erroneous, then it can reverse its own decision. The view was  
further strengthened in a number of subsequent cases, i.e. In Bengal Immunity Company  
Vs the State of Bihar4 and in the State of Bombay Vs. The United Motors Ltd. It was after  
the Sajjan Singh v State of Rajasthan5 the trend was well settled that the Supreme Court is  
no more bound by its own decisions. Chief Justice Gajendragadker observed that there is  
no restriction in the constitution which restricts Supreme Court from reviewing its earlier  
decisions.  
In Keshavananda Bharti v. State of Kerala6 Supreme Court overruled its earlier  
cases and set a new trend in the ‘basic structure doctrine.  
Thus, it is now well-settled that the Supreme Court is not bound by its own decisions.  
High Courts-  
High Courts are bound by the decisions of the Supreme Court. Similarly, the  
decisions of the High Courts are binding on all the courts below it within its jurisdiction,  
i.e. the decision of the High Court of Bombay is binding on all the courts below it in  
Maharashtra. Similarly, decisions of the High Court of Bangalore are binding on all courts  
in the state of Karnataka. The judgment of one High Court is not binding on the other High  
Court because both these courts are of co-ordinate jurisdiction. Thus, the decision of one  
High Court though not binding on the other High Court nevertheless has a persuasive value.  
3 AIR 1954 SC 119  
4 AIR 1955 SC 661  
5 AIR 1956 SC 845  
6 AIR 1973 SC 1461  
       
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But if such a decision of another High Court is in conflict with the decision of the parent  
High Court, then the decision has no value. But when judgments of the superior courts are  
of co-equal Benches and therefore of matching authority, then their weight must be  
considered rationally and logically.  
High Courts are not bound by their own decisions. However, the decision of the  
full-bench is binding on the Division- Bench and the DivisionBenches’ decision on that of  
the Smallest Bench. A single judge’s bench is called as ‘Smallest Bench’. A Bench of two  
judges is called the “Division Bench”, and the Bench of three and more judges constitutes  
the ‘Full Bench’. Therefore, the decision to use a larger Bench is binding on a smaller  
bench. The decision of a bench is binding on a smaller or co-ordinate Bench, however  
wrong the judgment may be. One bench of the same High Court cannot take a view contrary  
to the decision given earlier by another co-ordinate bench of the same High Court.  
However, if such a single or division Bench does not agree with the earlier decision of a  
co-ordinate Bench, then it must place the matter before the Chief Justice of that High Court  
to refer the matter to a larger Bench. Then, the Chief Justice will refer the matter to a larger  
Bench.  
The binding force of the decisions of the Federal Courts and of the Privy Council:-  
In British India, instead of today’s Supreme Court, there was Federal Court. The  
decisions of the Federal Court are still binding on the High Courts in India, provided their  
decisions should not be contrary to the decisions of the ‘Supreme Court’7.  
Similar is the position of the Privy Council’s decisions. Privy Council was the  
highest court of appeal, which used to hear appeals from British-ruled countries. The  
decisions of the Privy Council are also binding on High Courts in India, provided that they  
should not be contrary to the decisions of the Supreme Court8.  
Thus, in short, by the rule of precedent, the decision of the Supreme Court is  
binding on all courts in India. Similarly, all District Courts, Magistrate’s Courts and  
Munsif’s courts are bound by the decision of the High Court within its jurisdiction.  
Moreover, magistrates and Munsif’s courts are bound by the decisions of the District  
court’s decisions within their jurisdiction.  
VI) Ratio decidendi and obiter dicta-  
Ratio Decidendi-  
The literal meaning of the term ‘ratio decidendi’ is ‘reason of decision’. ‘Ratio  
decidendi’ is the rule of law upon which the decision is founded. Ratio decidendi is the  
rule of law applied by and acted upon by the court.  
7 Ss. 212 of the Government of Indian Act 1935 and Art. 225 of the Indian Constitution 1950.  
8 Art. 395 and Art. 225 of the Indian Constitution.  
   
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According to Rubert Cross, “ratio decidendi” is the rule of law expressly or  
impliedly treated by the judge as a necessary step in reaching his conclusion. Such a rule  
of law or ratio is implied by other courts in deciding cases before them based on similar  
facts.  
In Keshavananda Bharati Vs. Union Of India  
Full Bench of the Supreme Court laid down the ratio that the “Basic structure of the  
Constitution cannot be destroyed by amendments in the constitution”. Thus, an amendment  
carried on in the Constitution by Parliament if it destroys any of the Basic structures is  
unconstitutional. in Mohari bibi Vs Dharamdas Ghosh  
Court laid down the ratio that “contact by a minor is void-ab-into”.  
In Donohou Vs Stevenson  
The producer is liable for his negligence and therefore is liable for damage to the  
consumer.  
In Maneka Gandhi Vs Union of India  
Court laid down the ratio decidendi that-  
1) The procedure of depriving a person’s liberty must be just.  
2) That the term ‘law’ used in Art. 21 includes rules of natural justice also.  
In an English Case, Bridges Vs Hawkes worth (1851)  
Fact- A consumer had found some money on the floor of a shop. The shopkeeper applied  
for the money.  
Court laid ratio- that finder is to keep the money. Thus, this ratio decidendi laid down by  
the superior courts for a long has a binding force.  
All courts below must decide their cases based on similar facts according to the ratio  
decidendi laid down by the court. The rule of ‘ratio decided is also known as the doctrine  
of ‘stare decisis’.  
In Pradipta Padha v. Laxmi Kanta Maity (AIR 2015 (NOC) 1176 (Cal).  
Calcutta H.C held that- the Doctrine of stare decisis is based on the legal maxim ‘Stare  
decisis et non-quota movere” which means ‘to stand by decision rather disturb what is  
settled’.  
Obiter Dicta-  
The term ‘obiter dicta’ literally means ‘statements by the way’. In a number of cases,  
Judges express their legal opinions on issues which they are not asked to decide; or which  
are not involved in the disputed cases at hand. These statements of law, expressed by the  
Judges, which are not necessary to decide the dispute in hand, are called ‘obiter dicta’.  
These are the statements made by way of deciding the matter at hand.  
In Duncan Vs Commell, Laird and Co9.  
9 (1942) AC 624  
 
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The point in issue before the court was related to public ‘Security’. However, Judges laid  
down rules relating to the secrecy of Governmental documents. These rules of secrecy are  
obiter.  
In England, obiter dicta have no binding effect on either co-ordinate or subordinate  
courts; however, it has persuasive value. However, in the Indian obiter dicta of the Supreme  
Court is binding on all subordinate courts10. Even dissenting judgment is held to be of high  
respect if there is no direct decision contrary to it11. Thus, dissenting judgment of Justice  
Fazal Ali in A.K. Gopalan’s Case12 was accepted in Maneka Gandhi’s case. In A. K.  
Gopalan’s case, Justice Fazal Ali’s judgment was dissenting and upholding all the points  
raised by A.K. Gopalan; however, the majority judgment (five judges out of six) was in  
favour of the State rejecting liberty. However, in Maneka Gandhi’s case, a number of  
points from justice Fazal Ali’s judgment was again argued and upheld by the majority,  
which became a landmark and broadened the scope of Art. 21.  
Circumstances weakening or destroying the binding force of precedent-  
Following are the circumstances which destroy the binding force of precedent.  
1) Overruling-  
If the decision is overruled, it destroys earlier precedent, e.g. Ratio laid down in  
A.K. Gopalan’s case is destroyed by Maneka Gandhi’s case.  
2) Legislation-  
If legislation is passed against the settled precedent, the precedent loses its binding  
force, e.g. in Shahabano’s case13 Supreme Court held that Muslim woman has the right to  
get maintenance as other women u/s. 125 of Cr. P. C. till her death or re-marriage.  
However, to nullify the effect of this precedent, Parliament passed the Muslim Women  
(Protection of Rights on Divorce) Act. 1986. By the Act, the right of Muslim women to get  
maintenance was restricted to three months, i.e. iddat period.  
3) Decision in ignorance of Statute-  
If any judgment is given in ignorance of statute (i.e. “per in curim”), it is not binding.  
4) Decision of High Court inconsistent with Supreme Court -  
If the decision of the lower court if inconsistent with the higher court loses its  
bindingness. Similarly, conflicting judgments lose their binding force.  
5) When Judges are equally divided-  
When judges of the appellant court are equally divided, then the judgment of the lower  
10 Mohandas Vs Saltanathun (1954) 56 Bom L.R. 1156  
11 Ashok Layland Vs The State of Madras AIR 1957 Mal. 263  
12 A.K. Gopalan’s Vs State of Madras AIR 1950 SC 27  
13 AIR 1985 SC 945  
       
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court from which the appeal is made prevails, and the rule of precedent of that judgment  
loses its value.  
6) Erroneous decisions-  
The decisions founded on misconceived principles or in conflict with the  
fundamental principles of law lose their binding force.  
8) Affirmation or reversal on a different grand-  
When a higher court either affirms or reverses the judgment of the lower court on a  
ground different from those on which the judgment rests, such decisions lose their value.  
VII) Theories of Precedent -  
There are the following theories of precedent-  
1) The Declaratory theory of Precedent-  
Coke, Hale, Blackstone, Carter, Harmod etc., are believers in declaratory theory. To  
this theory, Judges do not make law but merely declare it. According to this theory, Judges  
merely interpret already existing laws and do not lay down new principles of law.  
According to this theory, precedent reshapes statutory law but does not add to it. It  
merely declares law.  
If a subsequent decision changes earlier, it does not make law but only discovers the  
correct principle of law.  
According to this theory, precedent, in fact, does not constitute a source of law. This  
theory further states that the law already exists; judges merely interpret, shape and declare  
the law.  
2) Judges make law-  
Bacon, Bentham, Austin, Dicey, Salmond etc., believe in this theory.  
According  
to this theory, judges make law through the rule of precedent. Believers of this theory admit  
that generally, judges apply existing law, but many times judges modify, extend and create  
an entirely new principle (i.e. law). This theory states that through new precedents, judges  
make new laws.  
In a number of cases, it is found that judges of higher judiciary make new laws.  
In Sammersett’s Case14 -  
Issue whether slavery is to be allowed.  
Lord Mansfield held Slavery could not be allowed by law. In fact, there was no existing  
law that prohibited slavery.  
In India, also we find a number of cases and writs wherein the higher judiciary has  
laid down new principles of law.  
Conclusion  
14 (1772) 20 State Tr. I  
 
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Prof. S.D. Bhosale  
In conclusion, it may be said that the advantages of precedent outweigh the  
disadvantages, and it is accepted as one of the important sources of law in almost all legal  
systems, including the USA, UK, India etc.  
In Keshavanand Bharti Vs the State of Kerala15 Supreme Court decided against  
the legislature and held that Parliament can amend the constitution but cannot destroy the  
basic structure of the constitution.  
Now, most of the part of the constitution is clothed with the ‘basic structure’  
principle.  
The judgment made a great impact on civilized societies around the globe. This  
doctrine is read for the protection of the constitution.  
In Maneka Gandhi’s case, Supreme Court considered a number of factors and  
widened the scope of Art. 21. Similarly, in Vishaka’s Case Court laid down rules for the  
protection of working women from harassment of co-workers.  
Thus, it shows that Judges do lay down laws and apply them in practice.  
*****  
15 (AIR 1973 SC. 1461)  
 
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