CMA Foundation · Fundamentals of Business Laws and Business Communication · Sources of Law
When a High Court follows an earlier decision of the Supreme Court on a similar point of law, which source of law is mainly being applied?
The source being applied is judicial precedent. Under it, courts follow earlier decisions on similar points of law, and a ruling of the Supreme Court is binding on all other courts in India. It is different from delegated legislation, custom or equity.
- AJudicial precedentCorrect
- BDelegated legislation
- CCustomary law
- DEquity of the parties
Explanation
Following earlier court decisions on similar facts is the doctrine of judicial precedent, under which Supreme Court rulings bind all courts in India. Delegated legislation consists of rules made by authorities under an Act, and custom arises from long practice. Equity is not what is being applied here.
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