We propose a novel method for binarization of color documents whereby the foreground text is output as black and the background as white regardless of the polarity of foreground-background shades. The method employs an edge-based connected component approach and automatically determines a threshold for each component. It has several advantages over existing binarization methods. Firstly, it can handle documents with multi-colored texts with different background shades. Secondly, the method is applicable to documents having text of widely varying sizes, usually not handled by local binarization methods. Thirdly, the method automatically computes the threshold for binarization and the logic for inverting the output from the image data and does not require any input parameter. The proposed method has been applied to a broad domain of target document types and environment and is found to have a good adaptability.