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16. To answer the said question it is necessary to know and understand what these legal doctrines of stare decisis and prospective overruling means, before applying the same to the facts of this case.

17. STARE DECISIS:

The legal effect of the previous decisions is governed by a complex set of conventions for which the Latin phrase "STARE DECISIS" is often used. Black's new Dictionary defines stare decisis mean "to avoid by", or adhere to decided cases. The other expressions commonly used is "PRECEDENT". The doctrine of stare decisis is the basis of common law. It originated in England and was used in the colonies as the basis of their judicial decisions. The genesis of the rule may be sought in factors peculiar to English legal history, amongst which may be singled out the absence of a Code. The older the decision, the greater its authority and the more truly was it accepted as stating the correct law. As the gulf of time widened, Judges became increasingly reluctant to challenge old decisions.
"Our Constitution does not expressly or by necessary implication speak against the doctrine of prospective overruling. In deed, Articles 32, 141 and 142 are couched in such wide and elastic terms as to enable this Court to formulate legal doctrines to meet the ends of justice. The only limitation thereon is reason, restraint and justice. Under Article 32, for the enforcement of the fundamental rights the Supreme Court has the power to issue suitable directions or orders or writs. Article 141 says that the law declared by the Supreme Court shall be binding on all Courts; and Article 142 enables it in the exercise of its jurisdiction to pass such decree or make such order as is necessary for doing complete justice in any cause or matter pending before it. These articles are designedly made comprehensive to enable the Supreme Court to declare law and to give such directions or pass such orders, as are necessary to do complete justice. The expression "declared" is wider than the words "found or made". To declare is to announce opinion. Indeed, the latter involves the process, while the former expresses result. Interpretation, ascertainment and evolution are parts of the process, while that interpreted, ascertained or evolved is declared as law. The law declared by the Supreme Court is the law of the land. If so, we do not see any acceptable reason why it, in declaring the law in supression of the law declared by it earlier, could not restrict the operation of the law as declared to future and save the transactions, whether statutory or otherwise that were effected on the basis of the earlier law. To deny this power to the Supreme Court on the basis of some outmoded theory that the Court only finds law but does not make it is to make ineffective the powerful instrument of justice placed in the hands of the highest judiciary of this country."

27. From the examination of the aforesaid two legal doctrines it is clear both the doctrines are inter connected. They are overlapping. The doctrine of stare decisis is a rule of policy which promotes predictability, certainty, uniformity and stability, which has to be kept in mind by the Judge or the Court before reversing the settled legal position. However, doctrine of stare decisis is not an imprisonment of reason. It is not inflexible. But, if it is shown that the decision was clearly or manifestly wrong and it has been followed by the Court in other cases and its maintenance is injurious to public interest, then not only it has the power to declare the earlier law as wrong but it becomes its duty to reverse the said law as otherwise it amounts to permitting to perpetuate errors to the detriment of the general welfare or a considerable section thereof. If after taking into consideration all these aspects if the Court reverses the earlier decision and declares the law, the said declaration does not lay down any new law. It only corrects an earlier wrong interpretation of the law and, therefore, it dates back to the date of the law itself. Once such a law has been declared, reversing the earlier law, it is not open to another Court to hold that this law declared is not applicable to the decrees and orders passed following the law prior to such declaration. The doctrine of stare decisis does not confer any such power on a Judge or a Court to make such declaration. It would be wholly outside the jurisdiction of such Judge or Court and would be one without jurisdiction.