A judicial decision has two parts one is Obiter Dicta and the other part that is binding on the parties is called:-

Ratio Decidendi

A judicial statement of what we commonly refer to as a judgement in a legal case consists of two different elements which are referred to as Ratio Decidendi or Ratio and Obiter Dicta or Obiter.

• Ratio in Latin means the reason for the decision or judgement while obiter usually refers to additional opinions or observations that are made on the issues that are involved in the case.
• Obiter very often reveals the rationale that the court has adopted to come to a conclusion and it is the non-binding part of the judgement.
• The binding part of a judicial decision is the ratio decidendi. An obiter dictum is not binding in later cases because it was not strictly relevant to the matter in issue in the original case.