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Next Basics Law

Doctrine of Stare Decisis

The doctrine of stare decisis means “adhere to the decision and do not unsettle things which are established”. It is a useful doctrine intended to bring about certainty and uniformity in the law. Under the stare decisis doctrine, a principle of law which has become settled by a series of decisions generally is binding on the courts and should be followed in similar cases. This rule is based on public policy and expediency.

 

Ratio Decidendi

The underlying principle of a judicial decision, which is only authoritative, is termed as ratio decidendi.

 

Prof. Goodhart says that ratio decidendi is nothing more than the decision based on the material facts of the case.

 

Where an issue requires to be answered on principles, the principles which are deduced by way of abstraction of the material facts of the case eliminating the immaterial elements is known as ratio decidendi and such principle is not only applicable to that case but to other cases also which are of similar nature.

 

It is the ratio decidendi or the general principle which has the binding effect as a precedent, and not the obiter dictum. However, the determination or separation of ratio decidendi from obiter dictum is not so easy. It is for the judge to determine the ratio decidendi and to apply it on the case to be decided.

 

Obiter Dicta (“said by the way”)

Those judicial utterances in the course of delivering a judgement which taken by themselves, were not strictly necessary for the decision of the particular issue raised. These statements thus go beyond the requirement of the particular case and have the force of persuasive precedents only. The judges are not bound to follow them although they can take advantage of them. They some times help the cause of the reform of law.

 

Obiter Dicta are of different kinds and of varying degrees of weight. Some obiter dicta are deliberate expressions of opinion given after consideration on a point clearly brought and argued before the court. It is quite often too difficult for lawyers and courts to see whether an expression is the ratio of judgement or just a causal opinion by the judge. It is open, no doubt, to other judges to give a decision contrary to such obiterdicta.

 

(i)       Statutes or Legislation

 

Legislation is that source of law which consists in the declaration or promulgation of legal rules by an authority duly empowered by the Constitution in that behalf. It is sometimes called Jus scriptum (written law) as contrasted with the customary law or jus non-scriptum (unwrittenlaw). Salmond prefers to call it as “enacted law”.

 

Statute law or statutory law is what is created by legislation, for example, Acts of Parliament or of State Legislature. Legislation is either supreme or subordinate (delegated).

 

Supreme Legislation is that which proceeds from the sovereign power in the State or which derives its power directly from the Constitution. It cannot be replealed, annulled or controlled by any other legislative authority.


Subordinate Legislation is that which proceeds from any authority other than the sovereign power. It is dependent for its continued existence and validity on some superior authority.

 

The Parliament of India possesses the power of supreme legislation. Legislative powers have been given to the judiciary, as the superior courts are allowed to make rules for the regulation of their own procedure.

 

(ii)     Personal Law

In many cases, the courts are required to apply the personal law of the parties where the point at issue is not covered by any statutory law or custom.

 

In the case of Hindus, for instance, their personal law is to be found in-

a)        The Shruti which includes four Vedas.

b)       The ‘Smritis’ which are recollections handed down by the Rishi’s or ancient teachings and precepts of God, the commentaries written by various ancient authors on these Smritis. There are three main Smritis; the Codes of Manu, Yajnavalkya and Narada.

 

The personal law of Mohammedans is to be found in-

a)        The holy Koran.

b)       The actions, percepts and sayings of the Prophet Mohammed which though not written during his life time were preserved by tradition and handed down by authorised persons. These are known as Hadis.

c)          Ijmas, i.e., a concurrence of opinion of the companions of the Prophet and his disciples.

d)       Kiyas or reasoning by analogy. These are analogical deductions derived from a comparison of the Koran, Hadis and Ijmas when none of these apply to a particular case.

e)        Digests and Commentaries on Mohammedan law, themost important and famous of them being the Hedaya which was composed inthe 12th century and the Fatawa Alamgiri which was compiled by commandsof the Mughal Emperor Aurangzeb Alamgiri.

 

Mohammedans are governed by their personal law as modified by statute law and custom in all matters relating to inheritance, wills, succession, legacies, marriage, dowery, divorce, gifts, wakfs, guardianship andpre-emption.



(A)   Secondary Source of Indian Law Justice, Equity and Good Conscience


The concept of “justice, equity and good conscience” was introduced by Impey’s Regulations of 1781. In personal law disputes, the courts are required to apply the personal law of the defendant if the point at issue is not covered by any statute or custom.

 

In the absence of any rule of a statutory law or custom or personal law, the Indian courts apply to the decision of a case what is known as “justice, equity and good conscience”.

 

2.   Sources of English Law

The chief sources of English law are-

(i)    the Common Law,

(ii)     The Law Merchant,

(iii)      Equity, and

(iv)     the Statute Law.

i)   Common Law: The Common Law denotes that body of legal rules, the primary sources of which were the general immemorial customs, judicial decisions and text books on Jurisprudence. Common Law is unwritten law of England which is common to the whole of the realm.

ii)             Law Merchant: Law Merchant means those customs and usages which are binding on traders in their dealings with each other.

iii)              Principle of Equity: Equity is a body of rules, the primary source of which was neither custom nor written law, but the imperative dictates of conscience and which had been set forth and developed in the Courts of Chancery. ------------------------------------

 Statute Law: “Statute law is that portion of law which is derived from the legislation or enactment of Parliament or the subordinate and delegated legislative bodies.” It is now a very important source of Mercantile Law. A written or statute law overrides unwritten law, i.e., both Common Law and Equity. Some of the important enactments in the domain of Mercantile Law are: Partnership Act, Sale of Goods Act, Bankruptcy Act, Carriers Act, Companies Act etc.

3.   Mercantile or Commercial Law

There are many branches of law; viz.,

1.        Constitutional Law

2.        Administrative Law

3.        Criminal Law

4.        Civil Law

       5.        Mercantile or Commercial Law.

 

4.   Sources of Mercantile Law

The following are the main sources of Mercantile Law:

1.        The Law Merchant

2.        Statute Law

3.        Common Law

4.        Principles of Equity.

These have already been discussed under the heading – Sources of English Law.

5.   Mercantile Law in India


Prior to 1872, mercantile transactions were regulated by the law of the parties to the suit (i.e., Hindu Law, Mohammedan Law etc.). In 1872, the first attempt was made to codify and establish uniform principles of mercantile law when Indian Contract Act, 1872 was enacted. Since then, various Acts have been enacted to regulate transactions regarding partnership, sale of goods, negotiable instruments, etc.

 

6.   Sources of Indian Mercantile Law

The main sources of Indian Mercantile Law are:

1.        English Mercantile Law;

      2.        Acts enacted by Indian Legislature;

3.        Judicial Decisions; and

4.        Customs and Trade Usages.



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