Supreme court explains the distinction between the doctrine of Precedent and Res Judicata

There is a clear conceptual distinction between precedent and res judicata. Salmond on Jurisprudence P.J. Fitzgerald (12th Edition) page 141 states "a judicial precedent speaks in England with authority; it is not merely evidence of the law but a source of it, and the courts are bound to follow the law that is so established". A decision between two parties which sets out a principle of law will operate as a precedent for disputes between two other parties too. A precedent operates in rem. In contrast, a res judicata operates in personam between the same parties either in the later stage of the same litigation between them or in a different litigation between them. That is the essential distinction between the two. {Para 24}

Res judicata operates in personam i.e. the matter in issue between the same parties in the former litigation, while law of precedent operates in rem i.e. the law once settled is binding on all under the jurisdiction of the High Court and the Supreme Court. Res judicata binds the parties to the proceedings for the reason that there should be an end to the litigation and therefore, subsequent proceeding inter se parties to the litigation is barred. Therefore, law of res judicata concerns the same matter, while law of precedent concerns application of law in a similar issue. In res judicata, the correctness of the decision is normally immaterial and it does not matter whether the previous decision was right or wrong, unless the erroneous determination relates to the jurisdictional matter of that body. [See Makhija Construction & Engg. (P) Ltd. v. Indore Development Authority,   MANU/SC/0302/2005 : (2005) 6 SCC 304]]

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 753 of 2026 

Decided On: 04.02.2026

Eminent Colonizers Private Limited Vs. Rajasthan Housing Board and Ors.

Hon'ble Judges/Coram:

J.B. Pardiwala and K.V. Viswanathan, JJ.

Author: K.V. Viswanathan, J

Citation: 2026 INSC 116, MANU/SC/0116/2026.

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