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CMA Foundation · Fundamentals of Business Laws and Business Communication · Legal Methods and Court System in India

Which statement about the binding effect of decisions within the Indian court hierarchy is correct?

The law declared by the Supreme Court is binding on all courts in India. A High Court's decision binds only courts subordinate to it and is merely persuasive elsewhere, while lower courts can never bind higher courts.

  1. AA High Court's decision binds the Supreme Court
  2. BA Supreme Court's law declared is binding on all courts within IndiaCorrect
  3. CA District Court's decision binds the High Court of the State
  4. DA High Court's decision binds every other High Court

Explanation

Under Article 141 of the Constitution, the law declared by the Supreme Court is binding on all courts in India. High Court decisions bind only courts subordinate to it and are merely persuasive for other High Courts. Lower courts never bind higher courts, so the other options invert the hierarchy.

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