Case Law ; Secunderabad Club vs CIT | 2023 (SC) | 2023 INSC 736
19 Aug 2023
The ratio decidendi has a binding effect whereas the obiter dictum is of persuasive effect.
The court made the following observations regarding the concept of ratio decidendi and binding
- 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.
- The reasoning of a judgment can be distinguished only upon reading of a judgment in its entiretythe 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
- 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, such an order is binding on the parties to the said order, but it cannot act as a precedent for subsequent cases
- 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.
- The decision is an authority for what is specifically decides and not what can logically be deduced therefrom.
- 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.
SC Holds as hereunder ;
“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 whereas the obiter dictum is of persuasive effect.
Dr Prem Lata
