Supreme Court Stresses Clear Distinction Between Binding Precedents and Dispute-Specific Judgments

The Supreme Court emphasized the importance of clearly stating whether its judgments are binding precedents under Article 141 of the Constitution or limited to resolving specific disputes under Article 136.

A bench of Justices PS Narasimha and Pankaj Mithal highlighted challenges faced by High Courts and trial courts in distinguishing between decision-making and precedent-setting judgments. The Court urged specifying intent in judgments to prevent misinterpretation.

The observation arose in a case referring the issue of unregistered MSMEs accessing dispute resolution under Section 18 of the MSMED Act, 2006, to a larger bench, underscoring the need for clarity.