1. RATIO DECIDENDI MEANING:- REASON OF THE DECISION
GENERAL PRINCIPLE DEDUCED IN A CASE.
RULE OF LAW UPON WHICH THE DECISION IS FOUNDED.

2. DEFINED AS MATERIAL FACTS OF THE CASE PLUS DECISION THEREON.
ACC. TO PROF. KEETON:-
IT IS A PRINCIPLE OF LAW WHICH FORMS THE BASIS OF DECISION IN A PARTICULAR CASE.

3. DECISION HAS 2 ASPECTS:-
WHAT PRINCIPLE IT LAYS DOWN ON THE RULE OF LAW FOR WHICH IT BECOMES AN AUTHORITY. THIS IS GENERALLY CALLED RATIO DECIDENDI OF THE CASE.
WHAT THE CASE DECIDES BETWEEN PARTIES SUCH MATTER BECOMES RES JUDICATA BETWEEN THE PARTIES AND CANNOT BE SUBJECT OF FURTHER DISPUTE.

4. ILLUSTRATION BRIDGE V. HAWKESHWORTH (1851)21 LJ QB 75
COURT APPLIED THE PRINCIPLE OF “FINDERS-KEEPERS” WHICH WAS THE RATIO DECIDENDI OF THE CASE.

5. OBITER DICTA
IN COURSE OF JUDGMENT, A JUDGE MAY TAKE VARIOUS OBSERVATIONS WHICH ARE NOT PRECISELY RELEVANT TO ISSUES BEFORE HIM.
EG. – MAY ILLUSTRATE REASONING BY REFERENCE TO HYPOTHETICAL SITUATIONS.

6. IT LITERALLY MEANS SOMETHING SAID BY THE JUDGE BY THE WAY, WHICH DOES NOT HAVE ANY BINDING AUTHORITY.
HAVE THE FORCE OF PERSUASIVE AUTHORITY AND ARE NOT BINDING UPON THE COURTS.
COURTS MAY SEEK HELP FROM THEM BUT THEY ARE NOT BOUND BY THEM.

7. ACC TO PROF. GOODHART-
“OBITER DICTA IS A CONCLUSION BASED ON A FACT, THE EXISTENCE OF WHICH HAS NOT BEEN DETERMINED BY THE COURT.”

8. STARE DECISIS MEANING:-
“LET THE DECISION STAND IN ITS RIGHTFUL PLACE.”
WHEN A DECISION CONTAINS A NEW PRINCIPLE IT IS BINDING ON SUBORDINATE COURTS & HAS PERSUASIVE AUTHORITY FOR EQUIVALENT COURTS.

9. GENERAL PRINCIPLES
EACH COURT IS ABSOLUTELY BOUND BY THE DECISIONS OF THE COURTS ABOVE IT.
HIGHER COURTS ARE BOUND BY THEIR OWN DECISIONS. IN INDIA, SC IS NOT BOUND BY ITS OWN EARLIER DECISION.

10. DECISION OF ONE HIGH COURT IS NOT BINDING ON ANYOTHER HC
DECISION OF ONE HIGH COURT IS NOT BINDING ON ANYOTHER HC. HAS ONLY PERSUASIVE VALUE.
A SINGLE BENCH BOUND BY THE DECISION OF A DIVISION BENCH OF THE SAME HC BUT A DIVISION BENCH IS NOT TO FOLLOW A DECISION OF A SINGLE BENCH OF THE SAME HC.

11. Res – Judicata
Result or the decision of the case which is fully conclusive between the parties , no place left for further dispute.