Binding High Court precedent bars a reference when the same issue between the same parties is already settled, despite Supreme Court pendency.

A petition under section 27(3) of the Wealth-tax Act, 1957 was considered unsustainable where the point in controversy had already been finally decided by the High Court between the same parties. The Tribunal had correctly followed that binding precedent and therefore found that no referable question of law arose from its order. Pendency of the same issue before the Supreme Court did not justify directing a reference when the issue was already concluded inter partes at High Court level. The petitions for reference were accordingly rejected.

---

---

Issues: Whether a petition under section 27(3) of the Wealth-tax Act, 1957 could be allowed to direct a reference when the point in controversy had already been decided by the High Court between the same parties and the matter was stated to be pending before the Supreme Court.

Analysis: The controversy was held to be fully covered by the earlier decision of the High Court. The Tribunal had followed that binding decision and, on that basis, had found that no referable question of law arose from its order. Pendency of the same issue before the Supreme Court was held to be no ground for directing a reference where the High Court had already decided the point, particularly when the issue stood concluded between the same parties.

Conclusion: No referable question of law arose, and the petitions for reference were rejected.

Ratio Decidendi: When the legal issue has already been finally decided by the High Court between the same parties, the mere pendency of the same question before the Supreme Court does not justify directing a reference under the Wealth-tax Act, 1957.

---