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Legal Method
Law logic and reasoning
 Determining the Ratio Decidendi
            of a case



             Dr. Tabrez Ahmad,         1
         technolexindia.blogspot.com
Determining Ratio of a
          case
• Since the ratio decidendi of a case has the nature
  of a propositional function, it is variable and
  becomes elusive. And jurists have even been in
  search of it. Any legal system using precedent has
  to consider the way in which they are relevant. To
  this end the relevancy is found in the fact that
  decisions involve some principle of general
  application. But the question is: how is this to be
  ascertained? Classical theory has regarded the
  binding part of a decision as the legal principle
  formulated.



                         Dr. Tabrez Ahmad,              2
                     technolexindia.blogspot.com
• him the ratio decidendi is controlled by the
  relation between "the material facts" of the case
  and the holding on these facts. While the ratio
  consists of the very reasoning necessary to
  explain the holding on "the material facts" found
  by the precedent judge, he suggests that the
  better way to approach the problem is to
  elucidate the ratio of a case from the facts
  themselves rather than from the principle
  enunciated by the Cour.



                         Dr. Tabrez Ahmad,            3
                     technolexindia.blogspot.com
•   Julius Stone challenges Goodhart and distinguishes between
    "descriptive" and "prescriptive" ratio decidendi to conclude that
    facts may be of many possible "levels of generalisation".
    Descriptively the phrase imports an explanation of the court's
    reasoning to its conclusion based on sociological, historical and
    even psychological inquiry. And the finding from such an inquiry is
    true or untrue as a matter of fact. This may be sought at various
    levels. Prescriptively the phrase refers to a normative judgment,
    requiring us to choose a particular, that is, binding ratio decidendi.
    In other words, Stone's argument is that Goodhart's theory yields
    indeterminate results because the "principle" derivable from a
    case by the Goodhart method of "material facts plus decision" is
    entirely dependent on the level of generality at which one chooses
    to describe the facts.




                                  Dr. Tabrez Ahmad,                          4
                              technolexindia.blogspot.com
• In this context R. Cross defines "the ratio
  decidendi of a case" as "any rule of law
  considered necessary by the Judge for the
  decision of the case: it is that part of the
  decision which has binding effect and the facts of
  the case play a large part in its identification".
  Hence, all other statements of law are obiter
  dicta. Now, the word "necessary" is used in the
  sense of "essential to the working of a judicial
  system". It seems Cross supports Goodhart. And a
  binding principle may be sketched as follows.



                         Dr. Tabrez Ahmad,             5
                     technolexindia.blogspot.com
• Where the facts are a, b, c, d, e, g and a
  reported decision is P, the decision is said
  to be based on the rule that whenever A,
  B, C then X should be decided. Here the
  lower case letters stand for the particular
  circumstances of the case and capital
  letters for general properties of facts so
  that a is an instance of A, etc. Thus the
  ruling in P can be summarised as:
• P: a, b, c, d, e, g/A.B.C X.


                       Dr. Tabrez Ahmad,         6
                   technolexindia.blogspot.com
• The novel case, N, is a case of a1, b1, c1, 1, (i.e. not — e1),
  f1 and it is governed by P, which is binding on the court.
  Now, in case the court decides to follow P, its ruling will be:
• N: a1, b1, c1, d1, 1, f1, /A.B.C X.
• In spite of some difficulties Goodhart's definition of ratio
  decidendi may be taken as a working rule. According to him
  the ratio is equated with the material facts of the case plus
  the decision thereon. And the rules for finding the ratio or
  principle may be summed up as follows:
• (1) The principle of a case is not found in the reasons given
  in the opinion.




                              Dr. Tabrez Ahmad,                     7
                          technolexindia.blogspot.com
• (2) The principle is not found in the rule of law set forth as
  the opinion.
• (3) The principle is not necessarily found by a consideration
  of all the ascertainable facts of the case, and the Judge's
  decision.
• (4) The principle of the case is found by taking account
• (a) of the facts treated by the Judge as material, and
• (b) his decision as based on them.
• (5) In finding the principle it is also necessary to establish
  what facts were held to be immaterial by the Judge, for
  the principle may depend as much on exclusion as it does on
  inclusion.




                              Dr. Tabrez Ahmad,                    8
                          technolexindia.blogspot.com
•   Goodhart himself mentions that his definition suffers from two
    infirmities. The first is that the facts are "infinitely various",
    though the material facts are strictly limited. Thus the
    consideration in a contract is a single material fact but the kinds
    of consideration are unlimited. Secondly, it may happen that the
    facts, stated by the Judge to be real and material, can be actually
    non-existent. This is a hypothetical case. It may be pointed out
    that the whole doctrine of precedent is based on the theory that
    generally Judges do not make mistakes either of fact or of law. In
    other words a decision given per incuriam is an exception that
    confirms the general rule. A case may be wrongly decided or
    decided for the wrong reason. As pointed out by Simpson: "The
    ratio of a case is only binding if it is not inconsistent with statute,
    or inconsistent with the ratio of another decision.




                                   Dr. Tabrez Ahmad,                          9
                               technolexindia.blogspot.com
•   Now cases may differ according as they contain a single opinion or
    several opinions. The determination of the ratio decidendi becomes
    easier if there is only a single opinion or all the opinions are in
    agreement. In case the several judgments agree in the result, but
    differ in the material facts on which they are based the principle
    is limited to the sum of all the facts considered material by the
    various judges. Thus a case involves facts A, B and C and the
    defendant is held liable. The first judge finds that fact A is the
    only material fact, the second that B is material, the third that C
    is material. The principle of the case is therefore, that on the
    material facts A, B and C the defendant is liable. If, however, two
    of the three judges had agreed that fact A was the only material
    one and that the others were immaterial, then the case would be a
    precedent one on this point, though the third Judge had held that
    the facts B and C were material ones.




                                 Dr. Tabrez Ahmad,                        10
                             technolexindia.blogspot.com
• This may sound too mechanical and may be seen in the case
  of Golak Nath v. State of Punjab, as decided by the Indian
  Supreme Court.
• Five judgments were delivered in the Golaknath case by (1)
  the Subba Rao block of Subba Rao, C.J., Shah, Sikri, Shelat
  and Vaidialingam, JJ.; (2) Hidayatullah, J.; (3) the Wanchoo
  block of Wanchoo, Bharagava and Mitter, JJ.; (4) Bachawat,
  J; and (5) Ramaswami, J. They may be reduced to three if
  the joint dissenting judgments of the Wanchoo block are
  equated with the separate dissenting judgments of (4) and
  (5). And the position would be like this: the Subba Rao block
  of five; the Wanchoo block of five; and the lone judgment
  of Hidayatullah, J. Six propositions seem to have been laid
  down by the judgments as follows:



                             Dr. Tabrez Ahmad,                    11
                         technolexindia.blogspot.com
• (a) Parliament cannot amend Part III of the Constitution of
  India so as to "take away or abridge" the fundamental
  rights; (b) all amendments made prior to February 27, 1967
  and affecting fundamental rights other than the "right to
  property" have full validity; (c) the effect of the first,
  fourth and seventh amendments on the "right to property",
  though made prior to February 27, 1967 remains valid and
  operative as part of the law of India; (d) the seventh
  amendment to Article 31-A(2) is similarly valid and
  operative; (e) the seventeenth amendment expanding the
  list of statutes in the Ninth Schedule is similarly valid and
  operative; and




                              Dr. Tabrez Ahmad,                   12
                          technolexindia.blogspot.com
• (f) the impugned land reform legislation of Punjab and
  Mysore (Karnataka) is wholly valid. It is interesting to note
  how these propositions are established, (a) is held by the
  majority comprising (1) and (2); (b) is held by (2) only,
  though it necessarily follows from the view of the Wanchoo
  block comprising (3), (4) and (5); (c), (d) and (f) are held
  unanimously; and (e) is held by ten Judges with Hidayatullah,
  J. dissenting. And the question is how to extract a single
  ratio out of these judgments. The answer is that the tangle
  of five separate judgments cannot possibly yield any single
  ratio. As observed by R. Cross:




                             Dr. Tabrez Ahmad,                    13
                         technolexindia.blogspot.com
• "The ratio decidendi is a conception
  peculiarly appropriate to a single judgment.
  Accordingly, it is probably impossible to
  avoid something in the nature of arbitrary
  rules to meet cases in which several
  judgments are delivered. The main trouble
  is that it is impossible to formulate these
  rules with anything like complete
  precision."


                      Dr. Tabrez Ahmad,          14
                  technolexindia.blogspot.com
• Three approaches may be considered in this connection. The
  first approach takes the phrase itself as a sufficient guide
  to the ratio. Thus in the Golaknath case one is to look for
  those propositions of law which were necessary and
  sufficient to base the "declaration" made by the Supreme
  Court. Article 141 uses the expression "declared" and this is
  explained by Subba Rao, C.J. thus: "The expression
  'declared' is wider than the words 'found or made'. To
  declare is to announce opinion. Indeed the latter involves
  the process, while the former expresses result.
  Interpretation, ascertainment and evolution are parts of
  the process, while that interpreted, ascertained or evolved
  is declared as law. The law declared by the Supreme Court
  is the law of the land."



                             Dr. Tabrez Ahmad,                    15
                         technolexindia.blogspot.com
• And what was necessary for the decision was the
  conjunction of the reasons given either (i) by the 5-man
  Subba Rao block and the 5-man Wanchoo block; or (ii) by
  the 5-man Subba Rao block and by Justice Hidayatullah; or
  (iii) by the 5-man Wanchoo block and by Justice
  Hidayatullah. On any of these hypotheses, two sets of
  reasons would be necessary; and the one wholly immaterial
  and this might be any one of the three. The Wanchoo block
  was in a minority in regard to proposition (a) and this does
  not mean that its reasons were not "necessary to the
  decision". However, these reasons can be ignored only on
  the ground that there was sufficient majority to base the
  decision without them. But this equally applies to either of
  the two sets of "majority" reasons.



                             Dr. Tabrez Ahmad,                   16
                         technolexindia.blogspot.com
•   The result is that the first supposed test of the ratio decidendi
    would lead to an insoluble choice amongst three pairs of sets of
    reasons with each pair comprising two different sets of ideas. In
    practice, of course, the choice is not wholly insoluble. It is evident
    that the reasons of the Wanchoo block are inconsistent with those
    of either the Subba Rao block or Justice Hidayatullah. But the
    last two reasonings are not necessarily inconsistent. Their
    compatibility tends to assume that these two judgments form the
    source of the ratio. Here one may hold with Chief Justice
    Centlivres in the South African case of Fellner v. Minister of the
    Interior, that even if a case has no apparent ratio decidendi, the
    actual "decision" is "binding". In the narrowest sense of "decision",
    this gives binding force only to proposition ( f); but on a wider
    meaning of "decision" all the propositions are binding.




                                  Dr. Tabrez Ahmad,                          17
                              technolexindia.blogspot.com
• The second approach may be formulated in terms of
  "counting heads". Here one simply adds up the number of
  Judges giving the propositions. Of course, the search is for
  a majority of the participating judges. Let us take a case
  with four views, p, q, r and s and in a court of 11 Judges — p
  is supported by 4 judges, q and r by 3 each, and s, by the
  remaining one. On a strict version of "counting heads" none
  of the four views would be established, since none had a
  clear majority. On the looser version p had more support
  than any of the others and it would be part of the ratio. But
  this violates Article 145(5) of the Indian Constitution,
  requiring that the "judgment" and "opinion" need be
  "delivered with the concurrence of a majority of the
  Judges present at the hearing of the case".



                              Dr. Tabrez Ahmad,                    18
                          technolexindia.blogspot.com
• As observed by Greenbery S.A. in the Fellner case: "The
  object of the enquiry is to ascertain what is the ratio
  decidendi and not what are the opinions of Judges. Insofar
  as the law is built up by judicial (precedent), it is not built
  up on a counting of heads of all the members of the Court.
  It is in the reasons of the majority of the Court for the
  order that the ratio decidendi is to be sought, the reasons
  of the dissenting Judges being irrelevant for this purpose"
  In this context, "counting heads" in its looser version would
  help us only as to the acceptance of "prospective
  overruling".




                              Dr. Tabrez Ahmad,                     19
                          technolexindia.blogspot.com
• The third approach may be termed "the majority
  of the majority". If the Golaknath decision is
  proposition (a), it is supported by 6 of the 11
  Judges and 5 support it for identical reasons. By
  equating the ratio with the reasons given by "the
  majority of the majority", Golaknath is confined
  to the single judgment delivered by Chief Justice
  Subba Rao with Justice Hidayatullah concurring
  with him. And the difficulties involved in
  extracting a ratio from Golaknath lead one to
  prefer a pragmatic approach to precedent —
  construction to rationes


                         Dr. Tabrez Ahmad,            20
                     technolexindia.blogspot.com
Legal Method
Analysing of the "Common Cause




            Dr. Tabrez Ahmad,         21
        technolexindia.blogspot.com
• The "Common Cause" is a registered Society. Under Article
  32 of the Indian Constitution the Common Cause and three
  retired government servants asked for striking down
  certain provisions of the Commutation of Pension Rules
  applicable to civilian and defence pensioners, since they
  permit the Union of India to recover more than what is paid
  to the pensioners upon commutation. Besides, the
  petitioners sought for a direction asking the Government to
  rationalise its scheme of commutation. The Single Judge of
  theSupreme Court has delivered two judgments — one
  relating to the civilian employees and the other relating to
  the defence personnel — and tried to make it a single
  judgment.




                             Dr. Tabrez Ahmad,                   22
                         technolexindia.blogspot.com
•   During the course of the hearing the Union Government agreed to
    restore the commuted portion of the pension in respect of "all
    civilian employees at the age of 70 years or after 15 years
    whichever is later". The facts are: (1) commutation makes available
    a lump sum to a pensioner; (2) there is the risk factor involved in
    case the pensioner dies before full recovery; (3) some
    Governments including State and Union have formulated a 15-year
    rule for restoration of the commuted pension; and (4) the 15-year
    formula is not justifiable because it permits recovery of more
    than the dues. The court has considered facts (1), (2) and (3) as
    material and ignored fact (4) in coming to the decision that
    restoration would take place on the expiry of 15 years from
    retirement. But this decision is given per incuriam, since it abets
    "unjust enrichment" banned by Section 70 of the Indian Contract
    Act, 1872.




                                 Dr. Tabrez Ahmad,                        23
                             technolexindia.blogspot.com
• As observed by Gajendragadkar, J. of the
  Supreme Court in State of West Bengal v. B.K.
  Mondal: "What Section 70 prevents is unjust
  enrichment and it applies as much to individuals as
  to Corporations and Government." In this context,
  Simpson observes: "The ratio of a case is only
  binding if it is not inconsistent with statute, or
  inconsistent with the ratio of another decision."
  And since the 15-year rule in the Common Cause
  violates both it cannot be the ratio of the case.
  In the result, it goes out.



                         Dr. Tabrez Ahmad,              24
                     technolexindia.blogspot.com
•   We are now concerned with the defence personnel judgment. Here
    Misra, J. comes to the right point and adopts the "years of
    purchase" basis and goes back to the 15-year rule by adding two
    years to the period necessary for the recovery on the basis of
    years of purchase. It may be noted that this addition of two years
    is not justifiable because of the existence of the "multiplier
    effect" involved in the "years of purchase". A multiplier is the
    number by which the amount of a specific capital investment is
    multiplied to give the resultant total amount by which the income
    has increased. Let us take a concrete example. If I-Investment, Y
    = income or capital value, then the multiplier K = Y/1 or KI = Y. In
    other words, the multiplier of investment (monthly payment
    because of commutation) to obtain capital value (lump sum given by
    way of commutation) is known as the years' purchase. And the
    number of years' purchase is found by dividing the capital value
    (lump sum) by investment (monthly payment by pensioner).



                                  Dr. Tabrez Ahmad,                        25
                              technolexindia.blogspot.com
•   The total amount obtained by a pensioner at a time is the product of the
    monthly payment out of the pension and the number of years necessary for
    full recovery by Government. In the judgment this has been ignored and
    the "multiplier" widened so as to make it equal to 15 years. But there is
    absolutely no scope for the addition of two years to the multiplier as is
    evident from the above equation. Moreover, this multiplier is a variable in
    respect of each pensioner, because of the variability of I and Y involved in
    the commuted pension. Therefore, it cannot be equated with the fixed 15-
    year rule by the addition of two years to the multiplier. It is a
    mathematical paradox. Finally, the judgment makes "equity" or equality
    stand on "the more or less basis". Mathematically this is absurd. For "more"
    is denoted by the sign > , "less" by < , while equality by =. Now, if > or <
    remains = cannot take the field. This, it is most respectfully submitted,
    sounds like an Orwellian paradox: "All animals are equal, but some animals
    are more equal than others."




                                    Dr. Tabrez Ahmad,                              26
                                technolexindia.blogspot.com
•   In this context we are to extract the ratio from the Common
    Cause. The Court's decision is the restoration of the commuted
    portion of the pension on the expiry of 15 years from retirement.
    This applies to civilian and defence pensioners and is made
    effective from April 1, 1985. And the question is: what is the ratio
    decidendi of the case? It has already been shown that the court
    has accepted the 15-year rule since the Governments have
    accepted it. This, it is submitted, cannot be called a judicial
    decision. For Misra, J. concludes: "Many of the State Governments
    have already formulated schemes accepting the 15-year rule. We
    do not think we would be justified in disturbing the 15-year rule so
    far as civilian pensioners are concerned." Here Section 70 banning
    "unjust enrichment" is violated and the Court is blissfully ignorant
    of this. The 15-year rule has been challenged by the Common
    Cause because it abets the commission of this offence. This is the
    justification for the Court's intervention in the matter.



                                 Dr. Tabrez Ahmad,                         27
                             technolexindia.blogspot.com
• However, the correct yardstick has been evolved by the
  court in respect of the defence pensioners: "the ' years of
  purchase' basis". Unfortunately, the court has erred, it is
  submitted, in adopting two bases on commutation according
  as the pensioners are civilian or defence while coming to the
  same decision as to the restoration of the commuted
  portion of pension. This is wrong. As pointed out by the
  Supreme Court in D.S. Nakara v. Union of India: "The
  pensioners for the purpose of pension benefits form a class.
  The equal treatment guaranteed in Article 14 is wholly
  violated inasmuch as the pension rules accord differential
  and discriminatory treatment to equals in the matter of
  commutation of pension. Division is thus both arbitrary and
  unprincipled."



                             Dr. Tabrez Ahmad,                    28
                         technolexindia.blogspot.com
• The Court has proceeded from the start on the
  two yardsticks — one for the civilian pensioners
  and the other for the defence personnel. The
  civilian yardstick is the 15-year rule, while the
  defence yardstick is "the years purchase' basis".
  Thereafter, the latter has been equated with the
  former by the addition of two years. But this
  does more injustice than justice. Yet the Court
  claims that this is 'equitable'. This is, to say the
  least, unfair.



                          Dr. Tabrez Ahmad,              29
                      technolexindia.blogspot.com
• Now, the question is: what is the ratio? It has already been
  shown that there has been a double-think in the adoption of
  two yardsticks on the restoration of the commuted portion
  of pension. For, the 15-year rule and "the 'years of
  purchase' basis" are two contradictory ideas and they
  remain irreconcilable. Secondly, double-talk appears in
  lengthening the procrustian bed of the years of purchase
  basis so as to make it fit in with the 15-year rule. Thirdly,
  the case gives the impression of two judgments, concurrent
  and dissentient. And the concurrent judgment has been
  arrived at without any legal reasoning. It is the function of
  the "hunch" in judicial decision. Here the Judge decides by
  feeling, and not by judgment; by "hunching" and not by
  ratiocination. As observed by Hutcheson



                             Dr. Tabrez Ahmad,                    30
                         technolexindia.blogspot.com
• "The vital, motivating impulse for the decision is an intuitive
  sense of what is right and wrong for that cause. And that
  Judge having so decided enlists his every faculty and
  belabours his laggard mind, not only to justify that intuition
  to himself, but to make it pass muster with his critics.
  Judges really do try to select categories or concepts into
  which to place a particular case so as to produce what the
  judge regards as a righteous result." Since the decision on
  the 15-year rule is given per incuriam, it has no binding
  effect at all. Fourthly, in case the one goes out, the other
  remains. Hence, the dissentient judgment, namely, "the
  'years purchase' basis" remains and attains the status of
  concurrent judgment.




                              Dr. Tabrez Ahmad,                     31
                          technolexindia.blogspot.com
• And the question of its expansion into the 15-year rule does
  not arise, since the latter violates Section 70 of the
  Contract Act and is not enforceable. Finally, "the 'years
  purchase' basis" becomes the ratio decidendi leading to the
  order for restoration of the commuted portion of pension
  to the pensioners. And the 15 years' limitation does not
  apply. In other words, the number of years necessary to
  repay the total lump sum would govern the recovery and no
  pensioner can be made to pay more than what is paid to him.
  And this is what the Common Cause has asked for.




                             Dr. Tabrez Ahmad,                   32
                         technolexindia.blogspot.com
Ratio in the "Common
       Cause"




         Dr. Tabrez Ahmad,         33
     technolexindia.blogspot.com
• Theories falling under quasi-contract are founded on a
  broad principle that unjust enrichment should not be
  retained at the expense of one who has suffered. In French
  law this principle is known by the name of actio de in rem
  verso, which "is founded on the principle of equity which
  forbids one man to enrich himself at the expense of
  another". This is applicable where "the estate of one person
  being enriched without lawful cause at the expense of
  another person, the latter, in order to obtain what is due to
  him, does not enjoy the benefit of any action based on
  contract, quasi-contract, delict or quasi-delict".




                             Dr. Tabrez Ahmad,                    34
                         technolexindia.blogspot.com
• Some recent codes provide for the return of unjust
  benefit. This may be seen in Article 123 of the Polish Code,
  Article 703 of the Japanese Civil Code, Articles 399-402 of
  the Civil Code of Soviet Russia, Article 62 of the Swiss
  Federal Code of Obligations, Article 812 of the German Civil
  Code and Article 179 of the Chinese Code. The American
  Restatement of the Law of Restitution, 1937 at p. 634
  provides for an accounting by the plaintiff as a condition
  for restitution. Lord Wright in England has pleaded for a
  new law of restitution in place of the fiction of the implied
  contract, where it is unreasonable and unjust for the
  defendant to retain the benefit he has received.




                             Dr. Tabrez Ahmad,                    35
                         technolexindia.blogspot.com
• The doctrine of unjust enrichment flowing from quasi-
  contract was partially stated in Section 70 of the Indian
  Contract Act, 1872. And the Supreme Court noticed it in
  State of West Bengal v. B.K. Mondal in which it was applied
  to Government. Subsequently, the concept of unjust
  enrichment has suffered a sea change at the hands of the
  Supreme Court in Mulamchand v. M.P. State The Court has
  held that Section 70 is based on a different kind of
  obligation: "The juristic basis of the obligation in such a
  case is not founded upon any contract or tort but upon a
  third category of law, namely, quasi-contract or
  restitution." In this connection the Supreme Court has
  quoted with approval the observations of Lord Wright in
  Fibrosa v. Fairbairn



                             Dr. Tabrez Ahmad,                  36
                         technolexindia.blogspot.com
• thus: "Any civilised system of law is bound to provide
  remedies for unjust enrichment or unjust benefit, that is,
  to prevent a man from retaining the money or some benefit
  derived from another which it is against conscience that he
  should keep. Such remedies in English law are different
  from remedies in contract or in tort and fall within a third
  category of the common law called quasi-contract or
  restitution." The concept has been further widened so as to
  include both law and equity. Hence the Indian Supreme
  Court has been pleased to note the latest development of
  the law by quoting the observations of Lord Denning in
  Nelson v. Larholt




                             Dr. Tabrez Ahmad,                   37
                         technolexindia.blogspot.com
•   "It is no longer appropriate to draw a distinction between law and equity.
    Principles have now to be stated in the light of their combined effect.
    Remedies now depend on the substance of their right, not on whether they
    can be fitted into a particular framework . The right here is not peculiar to
    equity or contract or tort, but falls naturally within the important category
    of cases where the court orders restitution if the justice of the case so
    requires." And the principle of restitution has been brought on a par with
    the American Restatement of the Law of Restitution. This means according
    to the Supreme Court that "a person (seeking) restitution has a duty to
    account to the defendant for what he has received in the transaction from
    which his right to restitution arises". This is the present position of the
    law of restitution since Section 70 of the Contract Act started on its
    journey in 1872. And the Common Cause v. Union of India has been decided
    on this law, though the Court has not uttered a single word in this regard.
    Lord Denning's expression summarises the law: "restitution if the justice
    of the case so requires". And the Indian Supreme Court has approved of
    this in Mulamchand.




                                     Dr. Tabrez Ahmad,                              38
                                 technolexindia.blogspot.com
• Since the law of restitution is applicable to commutation,
  the 15-year rule is arbitrary and it causes injustice. Here it
  is necessary to bring out the distinction between ratio
  decidendi and obiter dictum. As observed by H.J. Abraham:
  "Ratio decidendi refers to the essence, the vitals, the
  necessary core of the decision; obiter dictum is more or
  less extraneous, presumably unnecessary-to-the decision
  point made by the author of an opinion. In other words, the
  former constitutes the legal rule to be followed and
  adhered to below; the latter is an expression of a brief
  viewpoint, or sentiment, which at least in theory, has no
  binding effect




                              Dr. Tabrez Ahmad,                    39
                          technolexindia.blogspot.com
•   Of the two reasons — "the 15-year rule" and "the 'years of
    purchase' basis" — the first cannot be justified since it incarnates
    injustice in the shape of unjust enrichment. In other words, the
    15-year rule is an "unnecessary to the decision point made by the
    author of an opinion: (it) is an expression of a brief sentiment
    (having) no binding effect". Hence, it is an obiter dictum. On the
    other hand, "the 'years' purchase' basis" is "the necessary core of
    the decision: (it) constitutes the legal rule to be followed and
    adhered to below". In other words, this is the ratio decidendi,
    having the binding effect. As pointed out by Simpson: "the reason
    why a judge enunciates the rule of law upon which he acts is that
    the rule justifies his action: not any rule will serve as a
    justification, but only a rule which is acceptable as a rule of the
    legal system."




                                 Dr. Tabrez Ahmad,                         40
                             technolexindia.blogspot.com
• There is perpetual flux in the total push and pull of the
  universe and a judge faces a twofold task: (1) he must first
  extract from the precedents the underlying principle, the
  ratio decidendi; (2) he must then determine the path or
  direction along which the principle is to move and develop.
  Unfortunately Misra, J. has not in the Common Cause
  followed the salutory advice given by Cardozo. In case of
  conflict of principles, one may point to one conclusion and
  another may point to a second conclusion. A judge is to
  choose between two paths, selecting one or the other and in
  some cases he is to hit upon a third, which will be the
  resultant of the two forces in combination or will represent
  the mean between the extremes. This is illustrated by the
  case of Riggs v. Palmer



                             Dr. Tabrez Ahmad,                   41
                         technolexindia.blogspot.com
•   wherein it was decided that a legatee murdering his testator would not be
    permitted to enjoy the benefits of the will. Three principles contended for
    mastery. The first was the principle of the binding force of a will disposing
    of the testator's estate in conformity with law. This pushed to the limit of
    its logic seemed to uphold the title of the murderer. The second principle
    was that Civil Courts might not add to the pains and penalties of crimes.
    This pushed to the limit of its logic seemed to uphold his title. Over against
    these two was the third principle rooted in justice, namely, that no man
    should profit from his own iniquity. And the logic of this principle prevailed
    over the logic of the other two. In the Common Cause also the same may be
    noticed. The logic of "the years' purchase basis" is to prevail over the logic
    of the 15-year rule, since the former is rooted in justice while the latter is
    not. And the ratio decidendi of the case is "the 'years purchase' basis". In
    the words of the Supreme Court: "A decision is binding not because of its
    conclusion but in regard to its ratio and the principle laid down therein."




                                     Dr. Tabrez Ahmad,                               42
                                 technolexindia.blogspot.com
Conclusion
•   In a famous dictum Lord Halsbury said: "A case is only authority
    for what it actually decides. I entirely deny that it can be quoted
    for a proposition that may seem to follow logically from it. Such a
    mode of reasoning assumes that the law is necessarily a logical
    code, whereas (it) is not always logical at all." Literally interpreted
    it would be fatal to any system of precedents. But what Halsbury
    meant is that there is more to the law than a mechanical process
    of logical deduction. It is obvious that the Judge has in every case
    to decide for himself which of the circumstances of the alleged
    precedent were relevant to the decision and whether the
    circumstances of his own case are in their essentials similar. Once
    he has decided which principle to apply, a bit of logic may enter
    into his application of principles. But there cannot always be a
    principle which imposes itself or an absolutely inescapable logical
    deduction. Generally there is a choice




                                   Dr. Tabrez Ahmad,                          43
                               technolexindia.blogspot.com
• And this has been explained by Chandrachud, C.J. in Deena
  v. Union of India thus: "Any case, even a locus classicus, is
  an authority for what it decides. It is permissible to extend
  the ratio of a decision to cases involving identical situations,
  factual and legal, but care must be taken to see that this is
  not done mechanically, that is, without a close examination
  of the rationale of the decision cited as a precedent."
• In this context the role of the Judge is described by Lord
  Wright while discussing Bell v. Lever Bros thus




                              Dr. Tabrez Ahmad,                      44
                          technolexindia.blogspot.com
• The judge could go step by step with previous authorities to
  the point that an agreement based on mistake (is)
  unenforceable. Then he would have to decide whether the
  same result followed when the prior contract was indeed
  existing, but could be cancelled without compensation and
  was voidable. Here the ways parted, and the judge had to
  make up his mind by analogical reasoning, and by his
  perception of what was just or convenient."
• And the Common Cause, it is submitted, leaves much to be
  desired insofar as the "analogical reasoning" and the
  "perception of what was just" are concerned.




                             Dr. Tabrez Ahmad,                   45
                         technolexindia.blogspot.com

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Law and Fact

  • 1. Legal Method Law logic and reasoning Determining the Ratio Decidendi of a case Dr. Tabrez Ahmad, 1 technolexindia.blogspot.com
  • 2. Determining Ratio of a case • Since the ratio decidendi of a case has the nature of a propositional function, it is variable and becomes elusive. And jurists have even been in search of it. Any legal system using precedent has to consider the way in which they are relevant. To this end the relevancy is found in the fact that decisions involve some principle of general application. But the question is: how is this to be ascertained? Classical theory has regarded the binding part of a decision as the legal principle formulated. Dr. Tabrez Ahmad, 2 technolexindia.blogspot.com
  • 3. • him the ratio decidendi is controlled by the relation between "the material facts" of the case and the holding on these facts. While the ratio consists of the very reasoning necessary to explain the holding on "the material facts" found by the precedent judge, he suggests that the better way to approach the problem is to elucidate the ratio of a case from the facts themselves rather than from the principle enunciated by the Cour. Dr. Tabrez Ahmad, 3 technolexindia.blogspot.com
  • 4. Julius Stone challenges Goodhart and distinguishes between "descriptive" and "prescriptive" ratio decidendi to conclude that facts may be of many possible "levels of generalisation". Descriptively the phrase imports an explanation of the court's reasoning to its conclusion based on sociological, historical and even psychological inquiry. And the finding from such an inquiry is true or untrue as a matter of fact. This may be sought at various levels. Prescriptively the phrase refers to a normative judgment, requiring us to choose a particular, that is, binding ratio decidendi. In other words, Stone's argument is that Goodhart's theory yields indeterminate results because the "principle" derivable from a case by the Goodhart method of "material facts plus decision" is entirely dependent on the level of generality at which one chooses to describe the facts. Dr. Tabrez Ahmad, 4 technolexindia.blogspot.com
  • 5. • In this context R. Cross defines "the ratio decidendi of a case" as "any rule of law considered necessary by the Judge for the decision of the case: it is that part of the decision which has binding effect and the facts of the case play a large part in its identification". Hence, all other statements of law are obiter dicta. Now, the word "necessary" is used in the sense of "essential to the working of a judicial system". It seems Cross supports Goodhart. And a binding principle may be sketched as follows. Dr. Tabrez Ahmad, 5 technolexindia.blogspot.com
  • 6. • Where the facts are a, b, c, d, e, g and a reported decision is P, the decision is said to be based on the rule that whenever A, B, C then X should be decided. Here the lower case letters stand for the particular circumstances of the case and capital letters for general properties of facts so that a is an instance of A, etc. Thus the ruling in P can be summarised as: • P: a, b, c, d, e, g/A.B.C X. Dr. Tabrez Ahmad, 6 technolexindia.blogspot.com
  • 7. • The novel case, N, is a case of a1, b1, c1, 1, (i.e. not — e1), f1 and it is governed by P, which is binding on the court. Now, in case the court decides to follow P, its ruling will be: • N: a1, b1, c1, d1, 1, f1, /A.B.C X. • In spite of some difficulties Goodhart's definition of ratio decidendi may be taken as a working rule. According to him the ratio is equated with the material facts of the case plus the decision thereon. And the rules for finding the ratio or principle may be summed up as follows: • (1) The principle of a case is not found in the reasons given in the opinion. Dr. Tabrez Ahmad, 7 technolexindia.blogspot.com
  • 8. • (2) The principle is not found in the rule of law set forth as the opinion. • (3) The principle is not necessarily found by a consideration of all the ascertainable facts of the case, and the Judge's decision. • (4) The principle of the case is found by taking account • (a) of the facts treated by the Judge as material, and • (b) his decision as based on them. • (5) In finding the principle it is also necessary to establish what facts were held to be immaterial by the Judge, for the principle may depend as much on exclusion as it does on inclusion. Dr. Tabrez Ahmad, 8 technolexindia.blogspot.com
  • 9. Goodhart himself mentions that his definition suffers from two infirmities. The first is that the facts are "infinitely various", though the material facts are strictly limited. Thus the consideration in a contract is a single material fact but the kinds of consideration are unlimited. Secondly, it may happen that the facts, stated by the Judge to be real and material, can be actually non-existent. This is a hypothetical case. It may be pointed out that the whole doctrine of precedent is based on the theory that generally Judges do not make mistakes either of fact or of law. In other words a decision given per incuriam is an exception that confirms the general rule. A case may be wrongly decided or decided for the wrong reason. As pointed out by Simpson: "The ratio of a case is only binding if it is not inconsistent with statute, or inconsistent with the ratio of another decision. Dr. Tabrez Ahmad, 9 technolexindia.blogspot.com
  • 10. Now cases may differ according as they contain a single opinion or several opinions. The determination of the ratio decidendi becomes easier if there is only a single opinion or all the opinions are in agreement. In case the several judgments agree in the result, but differ in the material facts on which they are based the principle is limited to the sum of all the facts considered material by the various judges. Thus a case involves facts A, B and C and the defendant is held liable. The first judge finds that fact A is the only material fact, the second that B is material, the third that C is material. The principle of the case is therefore, that on the material facts A, B and C the defendant is liable. If, however, two of the three judges had agreed that fact A was the only material one and that the others were immaterial, then the case would be a precedent one on this point, though the third Judge had held that the facts B and C were material ones. Dr. Tabrez Ahmad, 10 technolexindia.blogspot.com
  • 11. • This may sound too mechanical and may be seen in the case of Golak Nath v. State of Punjab, as decided by the Indian Supreme Court. • Five judgments were delivered in the Golaknath case by (1) the Subba Rao block of Subba Rao, C.J., Shah, Sikri, Shelat and Vaidialingam, JJ.; (2) Hidayatullah, J.; (3) the Wanchoo block of Wanchoo, Bharagava and Mitter, JJ.; (4) Bachawat, J; and (5) Ramaswami, J. They may be reduced to three if the joint dissenting judgments of the Wanchoo block are equated with the separate dissenting judgments of (4) and (5). And the position would be like this: the Subba Rao block of five; the Wanchoo block of five; and the lone judgment of Hidayatullah, J. Six propositions seem to have been laid down by the judgments as follows: Dr. Tabrez Ahmad, 11 technolexindia.blogspot.com
  • 12. • (a) Parliament cannot amend Part III of the Constitution of India so as to "take away or abridge" the fundamental rights; (b) all amendments made prior to February 27, 1967 and affecting fundamental rights other than the "right to property" have full validity; (c) the effect of the first, fourth and seventh amendments on the "right to property", though made prior to February 27, 1967 remains valid and operative as part of the law of India; (d) the seventh amendment to Article 31-A(2) is similarly valid and operative; (e) the seventeenth amendment expanding the list of statutes in the Ninth Schedule is similarly valid and operative; and Dr. Tabrez Ahmad, 12 technolexindia.blogspot.com
  • 13. • (f) the impugned land reform legislation of Punjab and Mysore (Karnataka) is wholly valid. It is interesting to note how these propositions are established, (a) is held by the majority comprising (1) and (2); (b) is held by (2) only, though it necessarily follows from the view of the Wanchoo block comprising (3), (4) and (5); (c), (d) and (f) are held unanimously; and (e) is held by ten Judges with Hidayatullah, J. dissenting. And the question is how to extract a single ratio out of these judgments. The answer is that the tangle of five separate judgments cannot possibly yield any single ratio. As observed by R. Cross: Dr. Tabrez Ahmad, 13 technolexindia.blogspot.com
  • 14. • "The ratio decidendi is a conception peculiarly appropriate to a single judgment. Accordingly, it is probably impossible to avoid something in the nature of arbitrary rules to meet cases in which several judgments are delivered. The main trouble is that it is impossible to formulate these rules with anything like complete precision." Dr. Tabrez Ahmad, 14 technolexindia.blogspot.com
  • 15. • Three approaches may be considered in this connection. The first approach takes the phrase itself as a sufficient guide to the ratio. Thus in the Golaknath case one is to look for those propositions of law which were necessary and sufficient to base the "declaration" made by the Supreme Court. Article 141 uses the expression "declared" and this is explained by Subba Rao, C.J. thus: "The expression 'declared' is wider than the words 'found or made'. To declare is to announce opinion. Indeed the latter involves the process, while the former expresses result. Interpretation, ascertainment and evolution are parts of the process, while that interpreted, ascertained or evolved is declared as law. The law declared by the Supreme Court is the law of the land." Dr. Tabrez Ahmad, 15 technolexindia.blogspot.com
  • 16. • And what was necessary for the decision was the conjunction of the reasons given either (i) by the 5-man Subba Rao block and the 5-man Wanchoo block; or (ii) by the 5-man Subba Rao block and by Justice Hidayatullah; or (iii) by the 5-man Wanchoo block and by Justice Hidayatullah. On any of these hypotheses, two sets of reasons would be necessary; and the one wholly immaterial and this might be any one of the three. The Wanchoo block was in a minority in regard to proposition (a) and this does not mean that its reasons were not "necessary to the decision". However, these reasons can be ignored only on the ground that there was sufficient majority to base the decision without them. But this equally applies to either of the two sets of "majority" reasons. Dr. Tabrez Ahmad, 16 technolexindia.blogspot.com
  • 17. The result is that the first supposed test of the ratio decidendi would lead to an insoluble choice amongst three pairs of sets of reasons with each pair comprising two different sets of ideas. In practice, of course, the choice is not wholly insoluble. It is evident that the reasons of the Wanchoo block are inconsistent with those of either the Subba Rao block or Justice Hidayatullah. But the last two reasonings are not necessarily inconsistent. Their compatibility tends to assume that these two judgments form the source of the ratio. Here one may hold with Chief Justice Centlivres in the South African case of Fellner v. Minister of the Interior, that even if a case has no apparent ratio decidendi, the actual "decision" is "binding". In the narrowest sense of "decision", this gives binding force only to proposition ( f); but on a wider meaning of "decision" all the propositions are binding. Dr. Tabrez Ahmad, 17 technolexindia.blogspot.com
  • 18. • The second approach may be formulated in terms of "counting heads". Here one simply adds up the number of Judges giving the propositions. Of course, the search is for a majority of the participating judges. Let us take a case with four views, p, q, r and s and in a court of 11 Judges — p is supported by 4 judges, q and r by 3 each, and s, by the remaining one. On a strict version of "counting heads" none of the four views would be established, since none had a clear majority. On the looser version p had more support than any of the others and it would be part of the ratio. But this violates Article 145(5) of the Indian Constitution, requiring that the "judgment" and "opinion" need be "delivered with the concurrence of a majority of the Judges present at the hearing of the case". Dr. Tabrez Ahmad, 18 technolexindia.blogspot.com
  • 19. • As observed by Greenbery S.A. in the Fellner case: "The object of the enquiry is to ascertain what is the ratio decidendi and not what are the opinions of Judges. Insofar as the law is built up by judicial (precedent), it is not built up on a counting of heads of all the members of the Court. It is in the reasons of the majority of the Court for the order that the ratio decidendi is to be sought, the reasons of the dissenting Judges being irrelevant for this purpose" In this context, "counting heads" in its looser version would help us only as to the acceptance of "prospective overruling". Dr. Tabrez Ahmad, 19 technolexindia.blogspot.com
  • 20. • The third approach may be termed "the majority of the majority". If the Golaknath decision is proposition (a), it is supported by 6 of the 11 Judges and 5 support it for identical reasons. By equating the ratio with the reasons given by "the majority of the majority", Golaknath is confined to the single judgment delivered by Chief Justice Subba Rao with Justice Hidayatullah concurring with him. And the difficulties involved in extracting a ratio from Golaknath lead one to prefer a pragmatic approach to precedent — construction to rationes Dr. Tabrez Ahmad, 20 technolexindia.blogspot.com
  • 21. Legal Method Analysing of the "Common Cause Dr. Tabrez Ahmad, 21 technolexindia.blogspot.com
  • 22. • The "Common Cause" is a registered Society. Under Article 32 of the Indian Constitution the Common Cause and three retired government servants asked for striking down certain provisions of the Commutation of Pension Rules applicable to civilian and defence pensioners, since they permit the Union of India to recover more than what is paid to the pensioners upon commutation. Besides, the petitioners sought for a direction asking the Government to rationalise its scheme of commutation. The Single Judge of theSupreme Court has delivered two judgments — one relating to the civilian employees and the other relating to the defence personnel — and tried to make it a single judgment. Dr. Tabrez Ahmad, 22 technolexindia.blogspot.com
  • 23. During the course of the hearing the Union Government agreed to restore the commuted portion of the pension in respect of "all civilian employees at the age of 70 years or after 15 years whichever is later". The facts are: (1) commutation makes available a lump sum to a pensioner; (2) there is the risk factor involved in case the pensioner dies before full recovery; (3) some Governments including State and Union have formulated a 15-year rule for restoration of the commuted pension; and (4) the 15-year formula is not justifiable because it permits recovery of more than the dues. The court has considered facts (1), (2) and (3) as material and ignored fact (4) in coming to the decision that restoration would take place on the expiry of 15 years from retirement. But this decision is given per incuriam, since it abets "unjust enrichment" banned by Section 70 of the Indian Contract Act, 1872. Dr. Tabrez Ahmad, 23 technolexindia.blogspot.com
  • 24. • As observed by Gajendragadkar, J. of the Supreme Court in State of West Bengal v. B.K. Mondal: "What Section 70 prevents is unjust enrichment and it applies as much to individuals as to Corporations and Government." In this context, Simpson observes: "The ratio of a case is only binding if it is not inconsistent with statute, or inconsistent with the ratio of another decision." And since the 15-year rule in the Common Cause violates both it cannot be the ratio of the case. In the result, it goes out. Dr. Tabrez Ahmad, 24 technolexindia.blogspot.com
  • 25. We are now concerned with the defence personnel judgment. Here Misra, J. comes to the right point and adopts the "years of purchase" basis and goes back to the 15-year rule by adding two years to the period necessary for the recovery on the basis of years of purchase. It may be noted that this addition of two years is not justifiable because of the existence of the "multiplier effect" involved in the "years of purchase". A multiplier is the number by which the amount of a specific capital investment is multiplied to give the resultant total amount by which the income has increased. Let us take a concrete example. If I-Investment, Y = income or capital value, then the multiplier K = Y/1 or KI = Y. In other words, the multiplier of investment (monthly payment because of commutation) to obtain capital value (lump sum given by way of commutation) is known as the years' purchase. And the number of years' purchase is found by dividing the capital value (lump sum) by investment (monthly payment by pensioner). Dr. Tabrez Ahmad, 25 technolexindia.blogspot.com
  • 26. The total amount obtained by a pensioner at a time is the product of the monthly payment out of the pension and the number of years necessary for full recovery by Government. In the judgment this has been ignored and the "multiplier" widened so as to make it equal to 15 years. But there is absolutely no scope for the addition of two years to the multiplier as is evident from the above equation. Moreover, this multiplier is a variable in respect of each pensioner, because of the variability of I and Y involved in the commuted pension. Therefore, it cannot be equated with the fixed 15- year rule by the addition of two years to the multiplier. It is a mathematical paradox. Finally, the judgment makes "equity" or equality stand on "the more or less basis". Mathematically this is absurd. For "more" is denoted by the sign > , "less" by < , while equality by =. Now, if > or < remains = cannot take the field. This, it is most respectfully submitted, sounds like an Orwellian paradox: "All animals are equal, but some animals are more equal than others." Dr. Tabrez Ahmad, 26 technolexindia.blogspot.com
  • 27. In this context we are to extract the ratio from the Common Cause. The Court's decision is the restoration of the commuted portion of the pension on the expiry of 15 years from retirement. This applies to civilian and defence pensioners and is made effective from April 1, 1985. And the question is: what is the ratio decidendi of the case? It has already been shown that the court has accepted the 15-year rule since the Governments have accepted it. This, it is submitted, cannot be called a judicial decision. For Misra, J. concludes: "Many of the State Governments have already formulated schemes accepting the 15-year rule. We do not think we would be justified in disturbing the 15-year rule so far as civilian pensioners are concerned." Here Section 70 banning "unjust enrichment" is violated and the Court is blissfully ignorant of this. The 15-year rule has been challenged by the Common Cause because it abets the commission of this offence. This is the justification for the Court's intervention in the matter. Dr. Tabrez Ahmad, 27 technolexindia.blogspot.com
  • 28. • However, the correct yardstick has been evolved by the court in respect of the defence pensioners: "the ' years of purchase' basis". Unfortunately, the court has erred, it is submitted, in adopting two bases on commutation according as the pensioners are civilian or defence while coming to the same decision as to the restoration of the commuted portion of pension. This is wrong. As pointed out by the Supreme Court in D.S. Nakara v. Union of India: "The pensioners for the purpose of pension benefits form a class. The equal treatment guaranteed in Article 14 is wholly violated inasmuch as the pension rules accord differential and discriminatory treatment to equals in the matter of commutation of pension. Division is thus both arbitrary and unprincipled." Dr. Tabrez Ahmad, 28 technolexindia.blogspot.com
  • 29. • The Court has proceeded from the start on the two yardsticks — one for the civilian pensioners and the other for the defence personnel. The civilian yardstick is the 15-year rule, while the defence yardstick is "the years purchase' basis". Thereafter, the latter has been equated with the former by the addition of two years. But this does more injustice than justice. Yet the Court claims that this is 'equitable'. This is, to say the least, unfair. Dr. Tabrez Ahmad, 29 technolexindia.blogspot.com
  • 30. • Now, the question is: what is the ratio? It has already been shown that there has been a double-think in the adoption of two yardsticks on the restoration of the commuted portion of pension. For, the 15-year rule and "the 'years of purchase' basis" are two contradictory ideas and they remain irreconcilable. Secondly, double-talk appears in lengthening the procrustian bed of the years of purchase basis so as to make it fit in with the 15-year rule. Thirdly, the case gives the impression of two judgments, concurrent and dissentient. And the concurrent judgment has been arrived at without any legal reasoning. It is the function of the "hunch" in judicial decision. Here the Judge decides by feeling, and not by judgment; by "hunching" and not by ratiocination. As observed by Hutcheson Dr. Tabrez Ahmad, 30 technolexindia.blogspot.com
  • 31. • "The vital, motivating impulse for the decision is an intuitive sense of what is right and wrong for that cause. And that Judge having so decided enlists his every faculty and belabours his laggard mind, not only to justify that intuition to himself, but to make it pass muster with his critics. Judges really do try to select categories or concepts into which to place a particular case so as to produce what the judge regards as a righteous result." Since the decision on the 15-year rule is given per incuriam, it has no binding effect at all. Fourthly, in case the one goes out, the other remains. Hence, the dissentient judgment, namely, "the 'years purchase' basis" remains and attains the status of concurrent judgment. Dr. Tabrez Ahmad, 31 technolexindia.blogspot.com
  • 32. • And the question of its expansion into the 15-year rule does not arise, since the latter violates Section 70 of the Contract Act and is not enforceable. Finally, "the 'years purchase' basis" becomes the ratio decidendi leading to the order for restoration of the commuted portion of pension to the pensioners. And the 15 years' limitation does not apply. In other words, the number of years necessary to repay the total lump sum would govern the recovery and no pensioner can be made to pay more than what is paid to him. And this is what the Common Cause has asked for. Dr. Tabrez Ahmad, 32 technolexindia.blogspot.com
  • 33. Ratio in the "Common Cause" Dr. Tabrez Ahmad, 33 technolexindia.blogspot.com
  • 34. • Theories falling under quasi-contract are founded on a broad principle that unjust enrichment should not be retained at the expense of one who has suffered. In French law this principle is known by the name of actio de in rem verso, which "is founded on the principle of equity which forbids one man to enrich himself at the expense of another". This is applicable where "the estate of one person being enriched without lawful cause at the expense of another person, the latter, in order to obtain what is due to him, does not enjoy the benefit of any action based on contract, quasi-contract, delict or quasi-delict". Dr. Tabrez Ahmad, 34 technolexindia.blogspot.com
  • 35. • Some recent codes provide for the return of unjust benefit. This may be seen in Article 123 of the Polish Code, Article 703 of the Japanese Civil Code, Articles 399-402 of the Civil Code of Soviet Russia, Article 62 of the Swiss Federal Code of Obligations, Article 812 of the German Civil Code and Article 179 of the Chinese Code. The American Restatement of the Law of Restitution, 1937 at p. 634 provides for an accounting by the plaintiff as a condition for restitution. Lord Wright in England has pleaded for a new law of restitution in place of the fiction of the implied contract, where it is unreasonable and unjust for the defendant to retain the benefit he has received. Dr. Tabrez Ahmad, 35 technolexindia.blogspot.com
  • 36. • The doctrine of unjust enrichment flowing from quasi- contract was partially stated in Section 70 of the Indian Contract Act, 1872. And the Supreme Court noticed it in State of West Bengal v. B.K. Mondal in which it was applied to Government. Subsequently, the concept of unjust enrichment has suffered a sea change at the hands of the Supreme Court in Mulamchand v. M.P. State The Court has held that Section 70 is based on a different kind of obligation: "The juristic basis of the obligation in such a case is not founded upon any contract or tort but upon a third category of law, namely, quasi-contract or restitution." In this connection the Supreme Court has quoted with approval the observations of Lord Wright in Fibrosa v. Fairbairn Dr. Tabrez Ahmad, 36 technolexindia.blogspot.com
  • 37. • thus: "Any civilised system of law is bound to provide remedies for unjust enrichment or unjust benefit, that is, to prevent a man from retaining the money or some benefit derived from another which it is against conscience that he should keep. Such remedies in English law are different from remedies in contract or in tort and fall within a third category of the common law called quasi-contract or restitution." The concept has been further widened so as to include both law and equity. Hence the Indian Supreme Court has been pleased to note the latest development of the law by quoting the observations of Lord Denning in Nelson v. Larholt Dr. Tabrez Ahmad, 37 technolexindia.blogspot.com
  • 38. "It is no longer appropriate to draw a distinction between law and equity. Principles have now to be stated in the light of their combined effect. Remedies now depend on the substance of their right, not on whether they can be fitted into a particular framework . The right here is not peculiar to equity or contract or tort, but falls naturally within the important category of cases where the court orders restitution if the justice of the case so requires." And the principle of restitution has been brought on a par with the American Restatement of the Law of Restitution. This means according to the Supreme Court that "a person (seeking) restitution has a duty to account to the defendant for what he has received in the transaction from which his right to restitution arises". This is the present position of the law of restitution since Section 70 of the Contract Act started on its journey in 1872. And the Common Cause v. Union of India has been decided on this law, though the Court has not uttered a single word in this regard. Lord Denning's expression summarises the law: "restitution if the justice of the case so requires". And the Indian Supreme Court has approved of this in Mulamchand. Dr. Tabrez Ahmad, 38 technolexindia.blogspot.com
  • 39. • Since the law of restitution is applicable to commutation, the 15-year rule is arbitrary and it causes injustice. Here it is necessary to bring out the distinction between ratio decidendi and obiter dictum. As observed by H.J. Abraham: "Ratio decidendi refers to the essence, the vitals, the necessary core of the decision; obiter dictum is more or less extraneous, presumably unnecessary-to-the decision point made by the author of an opinion. In other words, the former constitutes the legal rule to be followed and adhered to below; the latter is an expression of a brief viewpoint, or sentiment, which at least in theory, has no binding effect Dr. Tabrez Ahmad, 39 technolexindia.blogspot.com
  • 40. Of the two reasons — "the 15-year rule" and "the 'years of purchase' basis" — the first cannot be justified since it incarnates injustice in the shape of unjust enrichment. In other words, the 15-year rule is an "unnecessary to the decision point made by the author of an opinion: (it) is an expression of a brief sentiment (having) no binding effect". Hence, it is an obiter dictum. On the other hand, "the 'years' purchase' basis" is "the necessary core of the decision: (it) constitutes the legal rule to be followed and adhered to below". In other words, this is the ratio decidendi, having the binding effect. As pointed out by Simpson: "the reason why a judge enunciates the rule of law upon which he acts is that the rule justifies his action: not any rule will serve as a justification, but only a rule which is acceptable as a rule of the legal system." Dr. Tabrez Ahmad, 40 technolexindia.blogspot.com
  • 41. • There is perpetual flux in the total push and pull of the universe and a judge faces a twofold task: (1) he must first extract from the precedents the underlying principle, the ratio decidendi; (2) he must then determine the path or direction along which the principle is to move and develop. Unfortunately Misra, J. has not in the Common Cause followed the salutory advice given by Cardozo. In case of conflict of principles, one may point to one conclusion and another may point to a second conclusion. A judge is to choose between two paths, selecting one or the other and in some cases he is to hit upon a third, which will be the resultant of the two forces in combination or will represent the mean between the extremes. This is illustrated by the case of Riggs v. Palmer Dr. Tabrez Ahmad, 41 technolexindia.blogspot.com
  • 42. wherein it was decided that a legatee murdering his testator would not be permitted to enjoy the benefits of the will. Three principles contended for mastery. The first was the principle of the binding force of a will disposing of the testator's estate in conformity with law. This pushed to the limit of its logic seemed to uphold the title of the murderer. The second principle was that Civil Courts might not add to the pains and penalties of crimes. This pushed to the limit of its logic seemed to uphold his title. Over against these two was the third principle rooted in justice, namely, that no man should profit from his own iniquity. And the logic of this principle prevailed over the logic of the other two. In the Common Cause also the same may be noticed. The logic of "the years' purchase basis" is to prevail over the logic of the 15-year rule, since the former is rooted in justice while the latter is not. And the ratio decidendi of the case is "the 'years purchase' basis". In the words of the Supreme Court: "A decision is binding not because of its conclusion but in regard to its ratio and the principle laid down therein." Dr. Tabrez Ahmad, 42 technolexindia.blogspot.com
  • 43. Conclusion • In a famous dictum Lord Halsbury said: "A case is only authority for what it actually decides. I entirely deny that it can be quoted for a proposition that may seem to follow logically from it. Such a mode of reasoning assumes that the law is necessarily a logical code, whereas (it) is not always logical at all." Literally interpreted it would be fatal to any system of precedents. But what Halsbury meant is that there is more to the law than a mechanical process of logical deduction. It is obvious that the Judge has in every case to decide for himself which of the circumstances of the alleged precedent were relevant to the decision and whether the circumstances of his own case are in their essentials similar. Once he has decided which principle to apply, a bit of logic may enter into his application of principles. But there cannot always be a principle which imposes itself or an absolutely inescapable logical deduction. Generally there is a choice Dr. Tabrez Ahmad, 43 technolexindia.blogspot.com
  • 44. • And this has been explained by Chandrachud, C.J. in Deena v. Union of India thus: "Any case, even a locus classicus, is an authority for what it decides. It is permissible to extend the ratio of a decision to cases involving identical situations, factual and legal, but care must be taken to see that this is not done mechanically, that is, without a close examination of the rationale of the decision cited as a precedent." • In this context the role of the Judge is described by Lord Wright while discussing Bell v. Lever Bros thus Dr. Tabrez Ahmad, 44 technolexindia.blogspot.com
  • 45. • The judge could go step by step with previous authorities to the point that an agreement based on mistake (is) unenforceable. Then he would have to decide whether the same result followed when the prior contract was indeed existing, but could be cancelled without compensation and was voidable. Here the ways parted, and the judge had to make up his mind by analogical reasoning, and by his perception of what was just or convenient." • And the Common Cause, it is submitted, leaves much to be desired insofar as the "analogical reasoning" and the "perception of what was just" are concerned. Dr. Tabrez Ahmad, 45 technolexindia.blogspot.com

Notas del editor

  1. Dr. Tabrez Ahmad, KLS KIIT, BBSR
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