The traditional judicial function is to “interpret the Statute” with a view to carry out the intention of the legislature that made the Statute. As per the basic structure of the Constitution of India, Parliament enacts the laws, Courts interpret the law and Government implements the law. Once an Act is passed by the Parliament, it has to be interpreted by the Courts so that the law can be properly implemented.
 
The aim of the present socio-legal research work is to examine the purpose of Interpretation of Statute and the basic rules of interpretation. The Socio-legal research carries significance in the modern welfare State, which envisages socio-economic information through law and thereby perceives law as a means of achieving socio-economic justice and parity. Through empiricism, socio-legal research assesses ‘rule and contribution of law’ in bringing the intended social consequences. In this way it helps us in accessing the ‘impact of law’ on the social values, outlook and attitude towards the ‘change’ contemplated by law under inquiry. It also highlights the ‘factors’ that have been creating ‘impediments’ for the law in attaining its ‘goal’. Socio-legal research renders an invaluable help in ‘shaping’ social legislations in tune with the ‘social engineering’ philosophy of the modern State and in making them more effective instruments of the planned socio-economic transformation. 
 
Judge-made law is very important for understanding law. An interpretation is placed in a judgment and over a period, that judgment is followed as a precedent and is taken as ‘law’ for all practical purposes. However, technically, Parliament makes laws and Judiciary interprets and decides on the law. If an interpretation made by Courts of Law is not what Parliament had in mind, Parliament can always amend the law. Theoretically, law is made by Parliament and Court can only interpret the same. However, this concept is no more true.
 
It is essential that a judgment given should be followed in all subsequent cases, so that a citizen knows what decision he can expect in a particular case. This is also needed as a ‘Judicial Discipline’. Doctrine of binding precedent has the merit of promoting a certainty and consistency in judicial decisions, and enables an organic development of the law, besides providing assurance to the individual as to the consequences of transactions forming part of his daily affairs.[1] So, what is binding is declaration of law under Article 141 and not what it does under Article 142 to do complete justice.[2]