Coordinate Bench binding effect prevents larger Bench reference without recorded reasons for disagreement and a clear point of difference.

A Division Bench of equal strength is bound by an earlier coordinate Bench decision and may seek reference to a larger Bench only after recording reasons for disagreement and identifying the precise point of difference. In the absence of such recorded reasons in the referral order, the larger Bench held that the reference was not properly framed for adjudication on merits. The matter was therefore not answered and was directed to be placed before the roster Bench for disposal in accordance with law.

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Issues: Whether the larger bench should answer the reference on the interpretation of Section 41(4) of the Odisha Value Added Tax Act, 2004 in the absence of recorded reasons for differing from a coordinate bench decision.

Analysis: A Division Bench of the same strength is bound by a prior decision of a coordinate bench unless it records reasons for disagreement and refers the matter with the identified point of difference. The referral order did not state any reasons for departing from the earlier binding decision. In such circumstances, the larger bench found that the reference was not properly framed for decision on merits.

Conclusion: The reference was not answered and the matters were directed to be placed before the roster bench for disposal on merits.

Ratio Decidendi: A bench of equal strength is bound by an earlier coordinate bench decision and cannot seek a larger bench reference without first stating the reasons for disagreement and the precise point of difference.

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