Can a quashed judgment is referred while passing an order?

The learned Principal District Judge was directed to decide my application afresh as per the order passed by the Hon'ble high Court in Arbitration Appeal . However, the learned Principal District Judge has reproduced the observation of his predecessor in a earlierJudgment.In fact the earlier Judgment was challenged by the respondent before the Hon'ble high Court and said Judgment was set aside and the matter was remanded back to the learned Principal District Judge for decision afresh. In such peculiar circumstances in my opinion placing reliance by the learned Principal District Judge on the observation of the Judgment which was already set aside amounts to passing of Judgment contrary to law. Am I right? is their any citation for this?