CMA Foundation · Fundamentals of Business Laws and Business Communication · Sources of Law
A High Court in Kerala has decided a point of law. A trial court in Gujarat is hearing a case on the same point, and no Supreme Court ruling exists on it. The Kerala decision is best described for the Gujarat court as:
The Kerala High Court decision is only a persuasive precedent for the Gujarat trial court. High Court rulings bind subordinate courts in their own state, but courts elsewhere may take them into account without being obliged to follow them.
- ABinding precedent, since all High Courts are equal
- BPersuasive precedent, which it may consider but need not followCorrect
- CVoid, since it was delivered outside Gujarat
- DLegislation that must be applied
Explanation
A High Court's decision binds courts subordinate to it within its own territory. For courts in another State it is only persuasive. The Gujarat trial court is not under Kerala High Court, so it may consider the ruling but is not bound by it.
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