When the Supreme Court’s divisional bench refers a case to a larger bench for reconsideration, does its earlier “reported” judgment remain valid until the final decision by the larger bench? Are there any legal arguments relevant to this situation?

Yes, the earlier judgment remains valid until the final decision by the larger bench. However, the parties can argue that the judgment should be treated as “sub-judice” and its application should be limited until the final decision by the larger bench.