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Supreme Court of India

S. SHANMUGAVEL NADARversusSTATE OF TAMIL NADU AND ANR.

Citation
2002 INSC 399
Decided
18 September 2002
Disposal
Appeal(s) allowed

Holding

The Supreme Court held that the Supreme Court order did not merge the High Court Division Bench's statement of law, which therefore remains a binding precedent and may be re‑examined by a larger bench.

Summary

The Supreme Court examined whether the Division Bench decision of the Madras High Court in M. Varadaraja Pillai's case merged into the Supreme Court's order of 10 September 1986, which dismissed appeals on the ground of non‑joinder of the State as a necessary party. The Court held that the Supreme Court order did not declare any law under Article 141 and therefore did not merge the High Court's statement of law; the Division Bench decision remains a binding precedent for lower benches and may be reconsidered by a larger High Court bench. Consequently, the Full Bench of the High Court was not precluded from re‑examining the constitutional validity of the Madras City Tenants Protection (Amendment) Acts. The appeals were allowed, the Full Bench judgment set aside, and the matters restored before the Full Bench for fresh hearing. The judgment clarified the limited scope of the doctrine of merger and the requirements for a declaration of law under Article 141.

Issues considered

  • The extent to which the doctrine of merger applies to the reasoning and statement of law of a lower court when a higher court dismisses an appeal on procedural grounds.
  • Whether the Supreme Court's order of 10 September 1986 constitutes a declaration of law under Article 141, thereby merging the High Court Division Bench decision.
  • Whether the High Court Full Bench is precluded from reconsidering the Division Bench decision in M. Varadaraja Pillai's case.
  • Whether the State is a necessary party in proceedings challenging the constitutional validity of a State enactment.

Legislation cited

Subjects

doctrine of mergerArticle 141binding precedentconstitutional validitynecessary partySupreme CourtHigh Courtappellate jurisdictionjudicial precedentres judicatasub‑silentio

Judgment

A                         S. SHANMUGAVEL NADAR
                                        v.
                     STATE OF TAMIL NADU AND ANR.

                               SEPTEMBER 18, 2002

B                 [R.C. LAHOTI AND BRIJESH KUMAR, JJ.]


         Doctrine of merger:

         Decision of lower court-Merger of in the decision of superior court-
C Scope and extent of -Appeals against judgment of Division Bench of High
  Court in M. Varadaraja Pillai's case• upholding constitutional validity of
  provisions of State Act No. 13 of 1960 dismissed by Supreme Court on
  I 0. 9.1986 for non-joinder ofState, as a party-Prayer for impleadment refused
  on the ground that it was made after a long lapse of time -In a later case
D another Division Bench of the High Court felt that the decision in M.
  Varadaraja Pil/ai's case required re-consideration and referred the matter to
  a Full Bench which observed that the appeals challenging the decision in
  M. Varadaraja Pillai's case having been dismissed by Supreme Court, the
  decision of the Division Bench of the High Court got merged with the
                                                        ·~...:.;,_

  decision of the Supreme Court-Held, it cannot be said that the decision of
E Supreme Court dated 10.9.1986 had the effect of resulting in merger of the
  decision of High Court into the order of Supreme Court as regards the
  statement of law or the reasons recorded by the Division Bench in M.
  Varadaraja Pillai's case-The contents of the order dated 10.9.1986 clearly
  reveal that neither the merits of the order of the High Court nor the reasons
F recorded therein nor the law laid down thereby were gone into nor they
  could have been gone into-In spite of the dismissal of appeals by order
  dated I 0. 9.1986 by Supreme Court on the ground of non-joinder of necessary
  party, though the operative part of the order of the Division Bench stood
  merged in the decision of Supreme Court, the remaining part of the order of
  the Division Bench of the High Court cannot be said to have merged in the
G order dated I 0. 9.1986 nor did the said order make any declaration of law
  within the meaning of Article 141 of the Constitution either expressly or by
  11ecessa1y implication-The statement of law as contained in the Division
  Bench decision of the High Court in M. Varadaraja Pillai's case would
  therefore continue to remain the decision of the High Court, binding as a
H precedent on subsequent benches of coordinate or lesser strength but open
                                          498
                   S. SHANMUGA VEL NA DAR v. ST ATE                    499

to reconsideration by any bench of the same High Court with a coram of A
judges more than two-Merger of decision of lower forum into that ofa
higher forum explained-Judgment-Merger of Precedent.

     M. Varadaraja Pillai v. Salem Municipal Council, (1972) 85 Law
 Weekly, 760, referred to.
                                                                             B
      State of U.P. v. Mohammad Nooh, AIR (1958) SC 86; State of Madras
 v. Madurai Mills Co. Ltd., AIR (1967) SC 681 and Kunhayammed and Ors.
 v. State of Kera/a and Anr., (2000( 6 SCC 359, referred to.

      Constitution of India, 1950
                                                                             c
        Article 141-Declaration of/aw by Supreme Court-Appeals against
  decision of Division Bench of High Court in M. Varadaraja Pillai's case
  upholding constitutional validity of State Act No. 13 of 1960, dismissed by
  Supreme Court on I 0. 9.1986 holding that State, being a necessary party, was
  not impleaded--Court did not allow the prayer for impleadment which was D
  made after lapse of a long period-Nor did the Court go into the question
  of constitutionality of Act 13 of 1960--In a later case when the matter was
  referred to a Full Bench of the High Court for re-consideration of the
  decision of High Court in M. Varadaraja Pillai 's case the Full Bench observed
  that the appeals having been dismissed by the Supreme Court it was not open
 for the Full Bench to examine and consider the correctness of the law laid E
  down by the Division Bench in M. Varadaraja Pillai's case which would be
  deemed to have been affirmed by Supreme Court-Held. for a declaration of
  law there should be a speaking order-In the present case, the order dated
  10.9.1986 passed by Supreme Court can be said to be a declaration of law
  limited only to two points-(i) that in a petition putting in issue the F
  constitutional validity of any State Legislation the State is a necessary party
  and in its absence the issue cannot be gone into, and (ii) that a belated
  prayer for impleading a necessary party may be declined by Supreme Court
. exercising its jurisdiction under Article 136 if the granting of the prayer is
  considered by the Court neither necessary nor proper at the given distance
  of time-By no stretch of imagination can it be said that the reasoning or G .
  view of the law contained in the decision of the Division Bench. of the High
  Court in M. Varadaraja Pillai 's case stood merged in the order of Supreme
  Court dated I 0. 9.1986 in such sense as to amount to declaration of law
  under Article 141 on that the order datei'10. 9.1986 affirmed the statement
  of law contained in the decision of High Court-Under Article 141, it is the H
    500                   SUPREME COURT REPORTS [2002] SUPP. 2 S.C.R.

A   law declared by the Supreme Court, which is binding on all Courts within
    the territory of India-Inasmuch as no law was declared by Suprem,e Court,
    the Full Bench was not precluded from going into the question of law arising
    for decision before it and in that context entering into and examining the
    correctness or otherwise of the law stated by the Division Bench in M.
B    Varadarajq Pillai's case and either affirming or overruling the view of law
     taken therein leaving the operative part untouched so as to remain binding
     on parties thereto-The judgment of the High Court is set aside-Al/ the
     appeals shall stand restored before the Full Bench of the High Court and
     shall be heard and decided in accordance with law.

C         Krishen Kumar v. Union of India & Ors., 11990] 4 SCC 207, State of
    U.P. and Anr. v. Synthetics and Chemicals Ltd and Anr.,.11991] 4 SCC 139,
    B. Shama Rao v. The Union Territory of Pondicherry, (1967] 2 SCR 650;
    M/s. Rup Diamonds and Ors. v. Union of India and Ors., AIR (1989) SC 674
    and Supreme Court Employees Welfare Association v. Union ofIndia and Ors.,
    AIR (1990) SC 334, relied on.
D
         Indian Oil Corporation Ltd v. State of Bihar and Ors., AIR (1986) SC
    1780, referred to.

          CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2480 of2001.

E        From the Judgment and Order dated 30.8.2000 of the· Chennai High
    Court in W.P. No. 10708of1996.
                                       WITH
         C.A. Nos. 2481, 2479, 377012001, 6370/2002, 4477, 4074/2001, 6371, 137,
    6372 of2002.
F
          R. Sundravardan, S. Prasad and Ram Lal Roy for Ramesh N. Keswani,
    for the Appellants in C.A. Nos. 2481, 2779/2001and137/2002.

         K.V. Vishwanathan, K.V. Venkatraman, Kunwal Ajit M. Singh and B.
    Ragunath, for the Appellant, in C.A. No. 4074/200 I.
G
          R. Nedumaran, S. Vallinayagam for the Appellant, in C.A. No. 2480/200 I.

          E.M.S. Natchiappan, S. Ravi Shankar and S. Jayashima for the Appellant,
    in C.A. No. 4477/2001.

H         G. Sivabalamurugan and V.N. Raghupathy for the Appellant, in C.A. No.
                   S. SHANMUGAVEL NADAR v. STATE                             501

6371/2002.                                                                           A
      T.L.V. Iyer, R. Anand Padmanabhan, Ms. Amritha Sarayoo, Pramod
Dayal Mrs. Revathy Raghavan, S. Aravindh, R.K. Sharma, K.V. Ramkumar,
K.V. Vijay Kumar, P. Narasimhan, Anil Kumar Sinha, K. Ramkumar, B. Sridhar,
Balaji Srinivasan, V. Sudder, M.B. Rama Suba Raju, Sooriya Kumeren and
Rakesh K. Sharma, for the Respondents.                                               B
      The following Order the Court was delivered :

      Leave granted.

      Looking at the nature of the controversy arising for decision and the          C
view which we propose to take of the matter before us, a detailed statement
of the facts is not called for. We will briefly notice bare essential facts. The
Madras City Tenants Protection (Amendment) Act, 1994 (Tamil Nadu Act 2
of 1996) was enacted by the State Legislature and came into force w .e.f. I Ith
January, 1996. The constitutional validity of this Act was put in issue by
several writ petitions filed in the High Court. When the matter came up for          D
hearing before the Division Bench reliance on behalf of the respondents in
the High Court was placed on Division Bench decision of the High Court
dated 25th January, 1972 reported as M Vardaraja Pillai v. Salem Municipal
Council, 85 Law Weekly 760.

       Diverting a little in narration of facts it is necessary to note that at an   E
earlier point of time the State Legislature had enacted the Madras City Tenants
Protection (Amendment) Act, 1960 (Act No. 13 of 1960) whereby certain
amendments were incorporated in the Madras City Tenants Protection Act,
1921. Constitutional validity of Act No. 13 of 1960 was challenged by filing
several writ petitions which came up to be heard and disposed of by                  F
M. Vardaraja Pi/Jai's (supra). The constitutional validity of Act No. 13 of
1960 was upheld.

      Appeals by special leave were filed before this Court against the Division
Bench decision in M. Vardaraja Pillai's case. This Court dismissed the
appeals vide its order dated 10.9.1986. It was useful to extract and reproduce       G
the brief order of this Court in its entirety for it will have a material bearing
on the issue arising for decision before us in the presents appeals. This Court
held:

          "The Constitutional validity of Act 13 of 1960 amending the
        Madras City Tenants' Protection Act, 1921 is under challenge in these        H
    502                    SUPREME COURT REPORTS [2002) SUPP. 2 S.C.R.

A          appeals. The State of Tamil Nadu was not made a party before the
           Trial Court. However, the State was impleaded as a supplemental
           respondent in appeal as per orders of the High Court. When the
           appellants lost the appeal, they sought leave to appeals to this Court.
           The State of Tamil Nadu was not made a party in the said leave
           petition. In the S.L.P. before this Court also the State of Tamil Nadu
B          was not made a party. A challenge to the constitutional validity of the
           Act cannot be considered or .determined, in the absence of the
           concerned State. The learned counsel now prays for time to implead
           the State of Tamil Nadu. This appeal is of the year 1973. In our view
           it is neither necessary nor proper to allow this prayer at this distance
C          of time. No other point survives in these appeals. Therefore, we
           dismiss these appeals, but without any order as to costs."

          It is clear that this Court did not go into the question of constitutional
    validity of Act 13 of 1960 nor did this Court apply its mind to the correctness
    or otherwise of the view taken by the High Court in M Vardaraja Pillai' case.
D   This Court simply dismissed the appeals as not properly constituted, and .
    hence incompetent, in view of the State of Tamil Nadu, a necessary party,
    having not been impleaded in the special leave petitions and the appeals.
    Thus briefly stated, the appeals were disposed of without any adjudication
    on merits.
                                                                                       -
E         Now, as stated in opening para of this judgment, when the matter as to
    the constitutional validity of Act 2 of 1996 came up for hearing before a
    Division Bench of the High Court, the decision in M Varadaraja Pillai's case
    was cited as a precedent and reliance was placed on behalf of ~he respondents
    on the law laid down therein. The Division Bench entertained some doubt
F   about the correctness of the view of the law taken by the earlier Division
    Bench in Varadaraja Pillai's case. However, consistently with the rules of
    judicial discipline and decorum, the Division Bench thought it fit to refer the
    matter to a Bench of three Judges (Full Bench) for reconsidering the decision
    of Madras High Court in Varadaraja Pillai's case, assigning the reasons in
    support of the opinion formed by it. The Division Bench in the operative part
G   of its order concluded as under:

                "The aforesaid decision in S.M Transport's Case*, of the Supreme
            Court, was heavily relied ·upon by this Court in deciding Varadaraja
            Pillai's case (68 L.W. 760). However, the aforesaid aspect of the case
            pointed out by the Supreme Court does not appear to have been taken
H           note of. For all these reasons, we are of the view that the decision in
                        S.SHANMUGAVELNADARv.STATE                                503
            Varadaraja Pillai 's case (85 L. W. 760) requires re-considerations.        A
            Therefore, we are of the opinion that it is just and appropriate to refer
            these cases to a larger Bench."
                                                                [*AIR 1963 SC 384]

            When the Full Bench took up the hearing of the case, the order of the
      Supreme Court dated 10.9.1986, referred to hereinabove, was brought to its        B
      notice. The Full Bench formed an opinion that in view of the appeals against

-     the Division Dench decision in Varadaraja Pillai's case having been dismissed
      by the Supreme Court, though on technical ground, neyertheless the Division
      Bench decision of the Madras High Court stood merged into the decision of
      the Supreme Court according to the doctrine of merger and, therefore, it was      C
    . no more open for the Full Bench to examine and consider the correctness of
      the law laid down.by the Division Bench in Varadaraja Pillai's case which,
      the Fu II Bench thought, would be deemed to have been affirmed by the
      Supreme Court in view of dismissal of the appeals there against.

          Feeling aggrieved by the abovesaid decision of the Full Bench, these          D
     appeals have been filed by special leave.

            Having heard the learned counsel for the parties, we are of the opinion
     that these appeals deserve to be allowed and the decision of the Full Bench
     dated 30.8.2000 deserves to be set aside as erroneous for the reasons more
     than one as stated hereinafter.                                                    E
           Firstly, the doctrine of merger. Though loosely an expression merger of
     judgment, order or decision of a court or forum into the judgment, order or
     decision of a superior forum is often employed, as a general rule the judgment
     or order having been dealt with by a superior forum and having resulted in
     confirmation, reversal or modification, what merges is the operative part, i.e.    F
     the mandate or decree issued by the Court which may have been expressed
     in positive or negative forum. For example, take a case where the subordinate
     forum passes an order and the same, having been dealt with by a superior
     forum, is confirmed for reasons different from the one assigned by the
     subordinate forum what would merge in the order of the superior forum is the       G
     operative part of the order and not the reasoning of the subordinate forum;
     otherwise there would be an apparent contradiction. However, in certain
     cases, the reasons for decision can also be said to have merged in the order
     of the superior court if the superior court has, while formulating its own
     judgment or order, either adopted or reiterated the reasoning, or recorded an
     express approval of the reasoning, incorporated in the judgment or order of        H
    504                     SUPREME COURT REPORTS (2002] SUPP. 2 S.C.R.

A the subordinate forum.
          Secondly, the doctrine of merger has a limited application. In State of
    U. P. v. Moha111111ad Nooh. AIR ( J958) SC 86 the Constitution Bench by its
    majority speaking through S.R. Das. CJ so expressed itself. "'while it is true
    that a decree of a court of first instance may be said to merge in the decree
B   passed on appeal therefrom or even in the order passed in revision, it does
    so only for certain purposes, namely, for the purposes of computing the
    period of limitation for execution of the decree". A three-Judge Bench in State
    of Madras v. Madurai Mills Co. ltd., AIR (1967) SC 681 held, "the doctrine
    of merger is not a doctrine of rigid and universal application and it cannot
                                                                                          -
C   be said that wherever there are two orders, one by the inferior authority and
    the other by a superior authority, passed in an appeal or revision, there is a
    fusion or merger of two order irrespective of the subject-111atter of the appellate
    or revisional order and the scope of the appeal or revision contemplated by
    the particular statute. The application of the doctrine depends En the nature
    of the appellate or revisional order in each case and the scope of the
D   statutory provisions conferring the appellate or revisional jurisdiction.
    (emphasis supplied). Recently a three-Judge Bench of this Court had an
    occasion to deal with doctrine of merger in Kunhaya111111ed and Ors. v. State
    of Kera/a and Anr., [2000) 6 SCC 359 and this Court reiterated that the
    doctrine of merger is not of universal or unlimited application; the nature of
E   jurisdiction exercised by the superior forum and the content or subject-matter
     of challenge laid or which could have been laid, shall have to be kept in
     view, (emphasis supplied). In this view of the Jaw, it cannot be said that the
     decision of this Court dated I0.9.1986 had the effect of resulting in merger into
    the order of this Court as regard the statement of Jaw or the reasons recorded
     by the Division Bench of the High Court in its impugned order. The contents
F    of the order of this Court clearly reveal that neither the merits of the order
     of the High Court nor the reasons recorded therein nor the Jaw laid down             .....
     thereby were gone into nor they could have been gone into.

          Thirdly, as we have already indicated, in the present round of litigation,
    the decision in Varadaraja Pillai 's case was cited only as a precedent and
G   not as res judicata. The issue ought to have been examined by the Full
    Bench in the light of Article 141 of the Constitution and not by applying the
    doctrine of merger. Article 141 speaks of declaration of law by the Supreme
    Court. For a declaration of Jaw there should be a speech, i.e., a speaking order.
    In Krishen Kumar v. Union of India and Ors., [ 1990) 4 SCC 207, this Court
H   has held that the doctrine of precedents, that is being bound by a previous
                    S. SHANMUGAVEL NADAR v. STATE                             505
decision, is limited to the decision itself and as to what is necessarily involved    A
in it. In State of U.P. and Anr. v. Synthetics and Chemicals Ltd and Anr.,
[ 1991] 4 SCC 139, R.M. Sahai, J. (vi de para 41) dealt with the issue in the light
of the rule of sub-silentio. The question posed was: can the decision of an
Appellate Court be treated as a binding decision of the Appellate Court on
a conclusion of law which was neither raised nor preceded by any consideration        B
or in other words can such conclusions be considered as declaration of law?
His Lordship held that the rule of sub-silentio, is an exception to the rule of
precedents. "A decision passes sub-silentio, in the technical sense that has
come to be attached to that phrase, when the particular point of law involved
in the decision is not perceived by the court or present to its mind." A court
is not bound by an earlier decision if it 1was rendered 'without any argument,        C
without reference to the crucial words of the rule and without any citation of
the authority'. A decision which is not express and is not founded on
reasons, nor which proceeds on consideration of the issues, cannot be deemed
to be a law declared, to have a binding effect as is contemplated by Article
141. His Lordship quoted the observationrfrom B. Shama Rao v. The Union
Territory of Pondicherry, [ 1967] 2 SCR 650 "it is trite to say that a decision       D
is binding not because of its conclusions but in regard to its ratio and the
principles, laid down therein". His Lordship tendered an advice of wisdom -
"restraint in dissenting or overruling is for sake of stability and uniformity but
rigidity beyond reasonable limits is inimical to the growth of law."

      Mis. Rup Diamonds and Ors. v. Union of India and Ors., AIR ( 1989)
                                                                                      E
SC 674 is an authority for the proposition that apart altogether from the merits
of the grounds for rejection, the mere rejection by a superior forum, resulting
in refusal of exercise of its jurisdiction which was invoked, could not by itself
be construed as the imprimatur of the superior forum on the correctness of
the decisions sought to be appealed against. In Supreme Court Employees F
Welfare Association v. Union of India and Ors., AIR (1990) SC 334 this Court
observed that a summary dismissal, without laying down any law, is not a
declaration oflaw envisaged by Article 141 of the Constitution. When reasons
are given, the decision of the Supreme Court becomes one which attracts
Article 141 of the Constitution which provides that the law declared by the
Supreme Court shall be binding on all the courts within the territory of India. G
When no reason are given, a dismissal simpliciter is not a declaration of law
by the Supreme Court under Article 141 of the Constitution. In Indian Oil
                                    ,
Corporation Ltd v. State of Bihar and Ors., AIR (1986) SC 1780 this Court
observed that the questions which can be said to have been decided by this
Court expressly, implicitly or even constructively, cannot be re-opened in H
    506                     SUPREME COURT.REPORTS [2002] SUPP. 2 S.C.R.

A· subsequent proceedings; but neither on the principle of res judicata nor on
    any principle of public policy analogous thereto, would the order of this Court
    bar the trial of identical issue in separate proceedings merely on the basis of
    an uncertain assumption that the issues must have been decided by this
    Court at least by implication.

B         It follows from a review of several decisions of this Court that it is the
    speech, express or necessarily implied, which only is the declaration of law
    by this Court within the meaning of Article 141 of the Constitution.

          A situation, near similar to the orie posed before us, has been dealt in
C Salmond' Jurisprudence (Twelfth Edition, at pp. 149-150) u(ider the caption-
    "Circumstances destroying or weakening the binding force of precedent
    (perhaps) affirmation or reversal on a different ground". It sometimes happens
    that a decision is affirmed or reversed on appeal on a different point. As an
    example, suppose that a case is decided in the Court of Appeal on ground
    A, and then goes on appeal to the House of Lords, which decides it on
D   ground B, nothing being said upon A. What, in such circumstances, is the
    authority of the decision on ground A in the Court of Appeal? Is the decision
    binding on the High Court, and on the Court of Appeal itself in subsequent
    cases? The learned author notes the difficulty in the question being positively
    answered and then states; (i) the High Court may, for example, shift the
E   ground of its decision because it thinks that this is the easiest way to decide
    the case, the point decided in the court below being of some complexity. It
    is certainly possible to find cases in the reports where judgments affirmed on
    a different point have been regarded as authoritative for what they decided;
    (ii) the true view is that a decision either affirmed or reversed on another point
    is deprived of any absolute binding force it might otherwise have had; but
F   it remains an authority which may be followed by a court that thinks that
    particular point to have been rightly decided.

           In the present case, the order dated 10.9.1986 passed by this Court can
    be said to be declaration of law limited only to two points - (i) that in a petition
    putting in issue the constitutional validity of any State Legislation the State
G   is a necessary party and in its absence the issue cannot be gone into, and
    (ii) that a belated prayer for impleading a necessary party may be declined by
    this Court exercising its jurisdiction under Article 136 of the Constitution if
    the granting of the prayer is considered by the Court neither necessary nor
    proper to allow at the given distance of time. By no stretch of imagination
H   can it be said that the reasoning or view of the law contained in the decision
j                        S. SHANMUGAVEL NA DAR v. STA TE                          507


1
-l
     of the Division of the High Court in M. Varadaraja Pillai's case had stood
     merged in the order of this court dated 10.9.1986 in such sense as to amount
     to declaration of law under Article 141 by this Court or that the order of this
     Court had affirmed the statement of law contained in the decision of High
                                                                                          A



     Court.

           We are clearly of the opinion that in ·spite of the dismissal of the           B
     appeals on 10.9.1986 by this Court on the ground ofnon-joinder of necessary
     party, though the operative part of the order of the Division Bench stood
     merged in the decision of this Court, the remaining part of the order of
     Division Bench of the High Court cannot be said to have merged in the order
     of this Court dated 10.9.1986 nor did the order of this Court make any               C
     declaration oflaw within the meaning of Article 141 of the Constitution either
     expressly or by necessary implication. The statement of law as contained in
     the Division Bench decision of the High Court in M. Varadaraja Pillai's case
     would therefore continue to remain the decision of the High Court, binding
     as a precedent on subsequent benches of coordinate or lesser strength but
     open to reconsideration by any bench of the same High Court with a coram             D
     of judges more than two.

            The Full Bench was not dealing with a prayer for review of the earlier
     decision of the Division Bench in M. Varadaraja Pillai's case and for setting
     it aside. Had it been so, a different question would have arisen, namely,
     whether another Division Bench or a Full Bench had jurisdiction or competence        E
     to review an earlier Division Bench decision of that particular Court and
     whether it could be treated as affirmed, for whatsoever reasons, by the
     Supreme Court on a plea that in view of the decision having been dealt with
     by the Supreme Court the decision of the High Court was no longer available
     to be reviewed. We need not here go into the question, whether it was a case         p
     of review, or whether the review application should have been filed in the
     High Court or Supreme Court. Such a question is not arising before us.

            Under Article 141 of the Constitution, it is the law declared by the
     Supreme Court, which is binding on all Courts within the territory of India.
     Inasmuch as no law was declared by this Court, the Full Bench was not                G
     precluded from going into the question of law arising for decision before it
     and in that context entering into and examining the correctness or otherwise
     of the law stated by the Division Bench in M. Varadaraja Pillai's case and
     either affirming or overruling the view of law taken therein leaving the operative
     part untouched so as to remain binding on parties thereto.
                                                                                          H
                                                                                        \
                                                                                        .I-
    508                    SUPREME COURT REPORTS [2002) SUPP. 2 S.C.R.                  I--
                                                                                        ,__
A          Inasmuch as in the impugned judgment, the Full Bench has not                 '
    adjudicated upon the issues for decision before it, we do not deem it proper
    to enter into the merits of the controversy for the first time in exercise of the
    jurisdiction of this Court under Article 136 of the Constitution. We must have
    the benefit of the opinion of the Full Bench of the High Court as to the vires
B   of the State legislation involved.

         For the foregoing reason, the appeals are allowed. The impugned ·
  judgment of the High Court is set aside. All the appeals shall stand restored
  before the Full Bench of the High Court and shall be heard and decided in
  accordance with law. The Full Bench while doing so, shall not feel inhibited
C by the fact that the appeals against the decision in M Varadaraja Pillai 's
  case were dismissed by this Court which, as we have already stated, were
  dismissed only on the technical ground without any law being laid down by
  this Court .. We also clarify that in view of the time that has already been lost,
  the Full Bench may proceed to hear and decide all the controversies arising
  for decision in the writ petitions in the High Court, that is, the Full Bench may
D obviate the need of sending the matter back 1b the Division Bench for hearing
   on such other issues as are not decided 'b/+it. Instead it may decide all the
   issues raised in the writ petitions fully and finally so far as the High Court
   is concerned. The hearing before the Full Bench shall be expedited as there
  are a number of writ petitions and a large number of cases are likely to be
E affected by the view that the Full Bench may ultimately take. In view of the
   writ petitions having been restored for hearing on the file of the High Court,
   we also clarify that all the interim orders, which were passed by the High
   Court shall also stand restored. Needless to say the High Court shall have
   the liberty of reconsidering the interim orders passed by it if any such
   occasion arises.
F
    R.P.                                                          Appeals allowed.


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