Precedent – Binding nature – Reference to Full Bench – Co-ordinate Bench cannot decide appeal on merits by taking contrary view.

Once a decision was rendered by one Division Bench in one appeal arising out of common order, a fortiorari, such decision was binding on another Division Bench (whether consisting of the same Judges or other) to avoid passing of 2 conflicting orders in one case. If for any reason, the later Division Bench did not agree to the view taken by the earlier Division Bench, then it had no option but to refer the matter to a larger bench (Full Bench) to resolve the conflict, after setting out the reasons for their disagreement and the area of difference. The later Division Bench had no jurisdiction to decide the appeal on merits by taking contrary view except to follow the reasoning and the conclusion arrived at by the earlier Division Bench and if they formed an opinion to take a contrary view then it was obligatory on the Division Bench to make a reference to the larger Bench and if they formed an opinion to take a contrary view then it was obligatory on the Division Bench to make a reference to the larger Bench to resolve the conflict. The jurisdiction to take a contrary view or/and to declare the decision “per incuriam” was with the Full Bench on a reference made by the later Division Bench and lastly: since no one brought the earlier decision to the notice of later Divison bench, a situation had arisen where a judgment came to be passed, which is in conflict with the earlier Division Bench judgment. Therefore, it has to be held as per incuriam.