Every decision contains three basic postulates: (a) findings of material facts, direct and inferential. An inferential finding of facts is the inference which the judge draws from the direct, or perceptible facts; (b) statements of the principles of law applicable to the legal problems disclosed by the facts; and (c) judgement based on the combined effect of the above. A decision is an authority for what it actually decides What is of the essence in a decision is its ratio and not every observation found therein nor what logically flows from the various observations made in the judgement. The enunciation of the reason or principle on which a question before a Court has been decided is alone binding as a precedent. Observations of courts are neither to be read as Euclid’s Theorems nor as provisions of the statute and that too taken out of their context.