Case Note & Summary
The dispute arose from the interpretation of the Import Policy 1985-88 concerning the rights of holders of additional licenses for 1978-79 to import both canalised and non-canalised items. The applicant, Star Diamond Company India, contended that it was not bound by previous court decisions as it was neither a party nor served notice in those proceedings. The Supreme Court examined the implications of its earlier orders, particularly the one dated April 18, 1985, which allowed importation of items not specifically banned under the import policy. The court clarified that the expression 'whether canalised or not' in its earlier order intended to include both types of items. The court also addressed the government's conflicting letter dated April 23, 1986, stating that it did not create any estoppel or alter the binding nature of the court's decisions. The court ultimately refused the interim relief sought by the applicant, emphasizing that the legal position established by its previous rulings must be adhered to by all parties, regardless of their involvement in those cases. The applications were disposed of without any order as to costs.
Headnote
A) Administrative Law - Binding Nature of Court Decisions - Court decisions are binding on all parties, regardless of their participation in the proceedings - Constitution of India, Article 141 - The court held that decisions laying down the position in law are binding on all, regardless of whether a party was involved in the original proceedings. This principle ensures uniformity and adherence to legal precedents (Paras 782-783).
Issue of Consideration
Whether holders of additional licenses for 1978-79 are entitled to import both canalised and non-canalised items under the Import Policy.
Final Decision
The Supreme Court dismissed the applications for interim relief, affirming that the previous court decisions are binding on all parties, including those not involved in the original proceedings.
Law Points
- Import Policy
- Administrative Law
- Binding Nature of Court Decisions
- Estoppel
- Canalised and Non-Canalised Items



