Bajaj Auto Finance Limited c/o P.L. Motor Limited – Applicant Versus Raghunath son of Sh. Vijaylal Kumawat and ors. – Respondents

Core ratio / Key holding

Headnote

Judicial Discipline – Co-ordinate Bench – Reference to Larger Bench

Precedent – Per Incuriam – Binding Force

Motor Vehicles Act, 1988 – Financier Liability – Per Incuriam Decision

Issues for determination

• Whether the order dated 11.04.2012 passed by the Co-ordinate Bench in S.B Civil Misc. Appeal No. 439/2002 has been passed in ignorance of the judgment of Hon’ble Apex Court in the case of Godawari Finance Company (Supra) and the provisions contained under Sections 146 and 168 of the Motor Vehicles Act, 1988 ?
• Whether this appeal can be decided in the light of the judgment of Hon’ble Apex Court in the case of HDFC Bank Limited Vs. Reshma (Supra) by taking a contrary view, to the view taken by the Co-ordinate Single Bench of this Court vide order dated 11.04.2012 while deciding SBCMA No. 439/2002 against the same impugned judgment and award dated 10.08.2000 which has attained the finality?

Ratio decidendi

• Judicial discipline requires a Single Bench or Division Bench to refer a matter to a Larger Bench if it finds conflicting decisions or disagrees with an earlier decision of a co-ordinate bench, instead of taking a contrary view.
• A judicial decision is rendered per incuriam and loses its binding precedential value if it is passed in ignorance of a statutory provision or a binding precedent of a higher court or a co-ordinate court, or if it fails to appreciate their relevance to the matter at hand.
• An earlier co-ordinate bench decision, which ignored binding Supreme Court precedents (Godavari Finance Company, HDFC Bank Limited) and statutory provisions (Sections 146 and 168 of the Motor Vehicles Act, 1988) regarding financier liability for an uninsured vehicle, is per incuriam.

Important points

• A co-ordinate bench decision that ignored binding Supreme Court precedents and statutory provisions regarding financier liability under the Motor Vehicles Act, 1988, is per incuriam.
• Judicial discipline mandates referring a matter to a Larger Bench when a Single Bench or Division Bench disagrees with a co-ordinate bench or finds conflicting decisions.
• This case is referred to a Special/Larger Bench to resolve the conflict arising from a co-ordinate bench's per incuriam decision on financier liability.

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