The
authority of the Supreme Court as precedent is found in Article 141 of the
Constitution of India. It provides that law declared by the Supreme Court shall
be binding on all Courts within territory of India. In order to know exact
meaning of the precedent, it is necessary to know as to what is meant by “the
law declared by the Supreme Court” appearing in Article 141.
Number of decisions of the Supreme
Court have clarified that there is vast difference between the expressions “the
law declared by the Supreme Court” and “the law enacted by the Legislature”. To
declare the law means to interpret the law. This interpretation of law is
binding on all the Courts in India. This is called as precedent. The law declared
by the Supreme Court is essential for proper administration of justice. The
main object of doctrine of precedent is that the law of the land should be
clear, certain & consistent so that the Courts shall follow it without any
hesitation
In
Union
of India Vs. Raghubir Singh, it has been held that The doctrine of
binding precedent has the merit of promoting a certainty and consistency in
judicial decisions, and enables an organic development of the law, besides
providing assurance to the individual as to the consequence of transactions
forming part of daily affairs. And, therefore, the need for a clear and
consistent enunciation of legal principle in the decisions of a Court.
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