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March 2014

Precedent – Law settled by Supreme Court or Division Bench of High Court – Binding Nature – In case of doubt by another bench, matter to be referred to larger bench: However, the Binding effect will prevail court should not wait for Larger Bench decision:

By Dr. K. Shivaram, Ajay R. Singh Advocates
Reading Time 1 mins
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Masusmi SA Investment LLC vs. Keystone Realtors P. Ltd. & Ors (2013) 181 Comp Cas. 525 (Bom)

The law laid down by the Supreme Court and the Division bench of the High Court will prevail and is binding on a single judge of the court. An order referring certain issues to be decided by a larger bench does not lay down any law. Only because the correctness of a portion of a judgement has been doubted by another bench, that would not mean that the court should wait for the decision of the larger bench.

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