Secunderabad Club v. CIT, 2023 INSC 736 had occasion to delineate how to cull out ratio decidendi and identify principles which have precedential value.
Further, a simple test has been invoked by this Court. Professor Eugene Wambaugh’s ‘Inversion Test’ mandates, to determine whether a particular proposition of law is part of ratio decidendi, either that proposition is hypothetically removed or is assumed was decided in reverse [State of Gujarat v. Utility Users’ Welfare Assn., (2018) 6 SCC 21]. After such removal or reversal, if decision of Court on that issue would remain same then observations cannot be regarded as ratio decidendi. The test was affirmed by a Three-Judge Bench of this Court in Nevada Properties (P) Ltd. v. State of Maharashtra, (2019) 20 SCC 119.
The merit of Wambaugh’s Test is, it provides what may be infallible means of ascertaining what is not a ratio decidendi.
– Hon’ble Justice J.B. Pardiwala, Estate Officer, Haryana Urban Development Authority v. Nirmala Devi, [Civil Appeal No. 7707 of 2025].
