Company Secretary Executive Program JIGL General Clauses Act, 1897 Question and Answers

Interpretation Act

An Interpretation Act is one that lays down the basic rules as to how meaning should be attributed to the provisions of an Act of Parliament. It streamlines the provisions of various Acts, by defining certain terms at one place so that there is no repetition in the other Acts.

Abet

This has the meaning as defined in Section 120B of the Indian Penal Code, 1860, i.e., to help another in committing a crime. The abettor is punished in the same manner as the person committing the crime.

Affidavit

Instead of giving evidence on oath, in certain cases information might be allowed to be given by way of affirmations or statements or declarations. It has the same importance as information given under oath.

Document

It means and includes any written matter, or matter recorded upon any material by way of letters, figures or marks, or by multiple means.

Indian Law

It includes any Act, ordinance, regulation, rule, order, bye-law or other similar forces of law.

It includes instruments that were considered as law before the commencement of the Constitution, in any Province of India or part thereof, and have thereafter attained the force of law in any Part A State or Part C State or Part thereof, but does not include any Act of Parliament of the United Kingdom or any Order in Council, rule or other instrument made under such Act. Hence, it includes only Indian Acts.

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General Rules of Construction

These are the rules used to derive meaning from legal instruments, especially contracts and statutes. Generally, since these rules are not codified, most States take them to be merely customary guidance, not as binding guidelines.

Contra Preferentem Rule

According to this rule, if a provision or clause in a contract is seen as ambiguous, the meaning should be so derived as to go against the interests of the person who had the clause included in the contract.

Ejusdem Generis

As per the rule of Ejusdem Generis, when in a law, specific things are listed out and then subsequently, they are referred to generally, the general reference will be applicable to the specifically listed things if they are all of the same kind.

Literal Rule of Interpretation

If the words of the statute are in themselves precise and unambiguous, then no more can be necessary than to expound those words in their natural and ordinary sense.

Purposive Rule of Interpretation

In Halsbury’s Laws of England, it is stated: “Parliament intends that an ‘enactment shall remedy a particular mischief and it is therefore presumed that Parliament intends that the court, when considering, in relation to the facts of the instant case, which of the opposing constructions of the enactment corresponds to its legal meaning, should find a construction which applies the remedy provided by it in such a way as to suppress that mischief.”

Harmonious Construction

When there are two provisions in a statute, that seem to be at odds with each other, they are to be interpreted in a manner that allows effect to be given to both. Any construction that renders either of them inoperative and useless should not be adopted except as a last resort.

General-Clauses-Act-1897-–-Jurisprudence-Interpretation-General-Laws-Important-Questions

Rule of Beneficial Construction

This rule recommends giving the widest meaning possible to the statutes and its provisions so as to include all those eventualities that the makers intended to be included. When there are multiple meanings possible to a section or a term, that meaning which gives the maximum possible relief and furthers the purpose of the legislation should be chosen.

Strict Construction of Penal Statutes

Generally, the rule for the construction of a penal statute says that it should be strictly interpreted, i.e. if there are two possible and reasonable constructions to a penal provision, the Court usually goes with that construction which exempts the subject from penalty rather than the one which imposes a penalty.

Mischief rule or Heydon’s rule

According to this rule, when we interpret statutes, we need to consider some facts –

what was the rule pertaining to the subject matter before the current statute was made
what was the mischief or wrong that the common law did not cover till
then, so that need for a special law was felt
the solution established by the new statute and the motive behind it.
These principles were established by Lord Coke in the famous case of Sir John Heydon, hence also known as Heydon’s rule. It was decided that when the literal meaning of the words of a statute is 1st obscured, then seeking the mischief which the act seeks to correct or mitigate would help in its interpretation.

Rule of Harmonious Construction

This rule of interpretation means that any section or part of a statute should be read with reference to the entire act, i.e. the meaning should be construed in entirety, not singularly. If while constructing the meaning of a section, it conflicts with the meaning given in another, in all probability there is an error in interpretation.

Hence, if two sections in the same statute seem to give different meanings or lead to opposite directions, the interpretation should be such as can accommodate both meanings.

Title of the act

There can be a long title and a short title. The long title can be used for understanding the context and brief description of the act, but the short title performs neither of these functions.

For example, the Foreign Exchange Management Act gives us an idea that it contains rules about foreign earnings and currency, but FEMA does not give us any idea unless we already know what the acronym stands for.

Marginal notes

Marginal notes are additional notes provided to the Articles in the Constitution. These are generally resorted to only when the meaning of the Articles is unclear, as these are not used for restricting the provisions of the Articles.

These have generally been seen as being a part of the Constitution. It should be taken care of that the marginal notes should not be allowed to supersede the Articles though.

Preamble

The preamble specifies the intention behind the making of the act, i.e. what is the mischief that the makers of the act sought to correct. It can be one of the key starting points when we begin to understand a statute.

Chapter heads

Chapter heads or separate headings separating the act into parts – This helps dividing the act into smaller parts, which are logically and sequential linked to enhance comprehension. Especially if we need to refer to a particular part, and not the whole of the act, these help us in getting to the right portion without losing valuable time.

Interpretative clauses

These may be portions where definitions or clarifications regarding the inclusions in sections or definitions of words have been given, as used in the statute. These can be inclusive or exhaustive definitions.

Proviso to a section

This gives the treatment of exceptional cases; those which can be called as qualifications, as they are to be treated in a different manner. It is generally in a very language, and without any ambiguity.

It has to be kept in mind though, that it provides the exception to that particular section and cannot be applied as a common rule.

Examples, illustrations or explanations

If within the coverage of the provision of the section they relate to, they can be treated as valuable aids to interpretation, as they simplify the application of the section. They cannot, in any case, be seen as making any extra provisions not mentioned in the section itself.

Schedules

These are there in relation to the act itself as they provide the information mentioned in some part of the act in greater detail, which aids application of the section. They help in making the main act concise and provide a well-organized way of presenting the statute. For example, the XIII Schedule of the Companies Act, 1956.

External or peripheral aids

The external or peripheral aids to interpretation are generally used when the statute is vague or indistinct in meaning. Here, the inner means of interpretation would not serve the purpose and some external means, e.g. the circumstances that prevailed at the time of making of the statute are needed.

Legal citation

It includes the documents, Acts and other authoritative documents referred to as sources of authentic information. Such sources also include precedents, rules and regulations supporting statutes, the text of treaties and even articles written by experts.

Chief Controlling Revenue Authority/Chief Revenue Authority

It means and includes the following

In States where a Board of Revenue has been formed, that Board;
In States where there is a Revenue Commissioner, that Commissioner;
In Punjab, the Financial Commissioner; and
In other States, authorities that have been nominated in relation to matters enumerated in List I in the Seventh Schedule to the Constitution by the Central Government or the State Government, by notification in the Official Gazette.

Political Agent

The definition includes –

in relation to any territory outside India, the Principal Officer, who represents the Central Government in that territory; and
in relation to any territory within India to which the Act or regulation does not extend, any officer appointed by the Central Government to exercise the powers of a Political Agent under that Act or regulation. (Section 3)

Public nuisance

It implies a public nuisance as defined in the Indian Penal Code. Section 268 of the IPC defines a Public Nuisance as follows “A person is guilty of a public nuisance who does any act or is guilty of an illegal omission which causes any common injury, danger or annoyance to the public or to the people in general who dwell or occupy property in the vicinity, or which must necessarily cause injury, obstruction, danger or annoyance to persons who may have occasion to use any public right.

A common nuisance is not excused on the ground that it causes some convenience or advantage.”

Swear

“Swear”, as per Section 62 of the Act, shall include affirming and declaring in the case of persons by law allowed to affirm or declare instead of swearing.

Will

“Will” includes a codicil (an addition or supplement that explains, modifies, or revokes a will or part of a will) and every writing that creates a voluntary posthumous disposition (the transfer or relinquishment of property to another’s care or possession usually by deed or will) of property. (Section 64)

Writing

As per Section 65 of the Act, ‘writing’ includes printing, lithography, photography and other modes of representing or reproducing words in a visible form.

Company Secretary Executive Program JIGL General Clauses Act,1897 Descriptive Questions

Question 1: Explain the ‘Rule of Harmonious Construction’ for interpretation under General Clauses Act, 1897.
Answer:

The ‘Rule of Harmonious Construction’ for interpretation under General Clauses Act, 1897

Rule of harmonious construction: If in an enactment, there are two provisions, which cannot be reconciled with each other, they should be so interpreted that, if possible, effect may be given to both. This is known as harmonious construction.

A statute must be read as a whole and one provision of the Act should be so construed to other provisions in the same Act so as to make a consistent enactment of the whole statue. Such a construction has the merit of avoiding any inconsistency or repugnancy either within a section or between a section and other parts of the statute.

In Raj Krishana vs Binod Kanungo, A.I.R 1954 S.C. 202, the Supreme Court observed that it is the duty of the Court to avoid a head-on-clash between two Sections of the same statute. The Court should construe provisions which appear to conflict in such a manner that they harmonise.

Question 2: Explain the “Rule of Beneficial Construction”.
Answer:

The “Rule of Beneficial Construction”

Beneficial construction involves giving the widest meaning possible to the statutes. When there are two or more possible ways of interpreting a section or a word, the meaning which gives relief and protects the benefits which are purported to be given by the legislation, should be chosen.

A beneficial statute has to be construed in its correct perspective so as to fructify the legislative intent. Beneficial construction to suppress the mischief and advance the remedy is generally preferred.

Beneficial Construction of statutes have enormously played an important role in the development and beneficial interpretation of socio-economic legislations and have always encouraged the Indian legislators to make more laws in favor of the people belonging to backward class of people in India.

Question 3: Briefly explain the “Purposive Rule of Interpretation’under the General Clauses Act, 1897.
Answer:

In Halsbury’s Laws of England, it is stated: “Parliament intends that an enactment shall remedy a particular mischief and it is therefore presumed that Parliament intends that the court, when considering, in relation to the facts of the instant case, which of the opposing constructions of the enactment corresponds to its legal meaning, should find a construction which applies the remedy provided by it in such a way as to suppress that mischief.”

The doctrine originates in Heydon’s case where the Barons of the Exchequer resolved that for the sure and true interpretation of all statutes in general (be they penal or beneficial, restrictive or enlarging of the common law), four things are to be discerned and considered:

what was the common law before the making of the Act;
what was the mischief and defect for which the common law did not provide;
what remedy Parliament has resolved and appointed to cure the disease of the commonwealth; and
the true reason of the remedy and the office of all the judges is always to make such construction as shall –
- suppress the mischief and advance the remedy; and suppress subtle inventions and evasions for the continuance of the mischief pro private commode (for private benefit); and
- add force and life to the cure and remedy according to the true intent of the makers of the Act pro bono publico (for the public good).

Question 4: Where any central legislation or any regulation enacted after the commencement of the General Clauses Act, 1897 repeals any Act, what shall not be affected by such repeal?
Answer:

Where any Central legislation or any regulation enacted after the commencement of this Act repeals any General Clauses Act 1897 made or yet to be made, unless another purpose exists, the repeal shall not:

Revive anything not enforced or prevailed during the period at which repeal is effected or;
Affect the prior management of any legislation that is repealed or anything performed or undergone or;
Affect any claim, privilege, responsibility or debt obtained, ensued or sustained under any legislation so repealed or;
Affect any punishment, forfeiture or penalty sustained with regard to any
offence committed as opposed to any legislation or
Affect any inquiry, litigation or remedy with regard to such claim, privilege, debt or responsibility and any such inquiry, litigation or remedy may be initiated, continued or initiated and any such penalty, forfeiture or punishment may be imposed as if the repealing Act or Regulation had not been passed.w.new

Question 5: Discuss the aim and objects of the General Clauses Act, 1897.
Answer:

The aim and objects of the General Clauses Act, 1897

The General Clauses Act, 1897 can be termed as an Interpretation Act. An Interpretation Act is one that lays down the basic rules as to how meaning should be attributed to the provisions of an Act of Parliament.

It streamlines the provisions of various Acts, by defining certain terms at one place so that there is no repetition in the other Acts. These definitions work as standard definitions or extended definitions of words and expressions (meaning that they have extensive coverage, being defined in an inclusive manner) utilized in multiple Acts.

Thus, such an Act has a very wide application. This could be termed as Substantive Law. It also provides a set of rules to govern some aspects of other enactments and rules for the operability of other statutes. Moreover, they might include other substantive information; definitions and terms that are covered nowhere else.

The main objectives of the General Clauses Act, 1897 are as under:

to briefly explain the language used in statutory enactments,
to provide uniformity of expressions by defining terms in common use,
to state explicitly certain common rules of construction,
to ensure usage of certain standard clauses, so that any oversight by a statute might be avoided.

Hence, the Act is to provide for interpretations of several provisions which would otherwise have to be dealt under their respective acts, and at multiple places. By so doing, it avoids multiplicity, as the same meaning of the clauses provided for in this statute can be taken wherever the terms or clauses appear.

It helps the judiciary in sound interpretation and also shortens the content of individual statutes.

Question 6: Explain the provision as to offences punishable under two or more enactments under Section 26 of the General Clauses Act, 1897.
Answer:

The provision as to offences punishable under two or more enactments under Section 26 of the General Clauses Act, 1897

Section 26 of the General Clauses Act, 1897 This section contains provisions related to offences that are punishable under two or more statutes. In such a situation, the accused shall be liable to be prosecuted and punished under either or any of the concerned statutes.

However, it is important to stress that he cannot be punished twice for the same offence. The decision of the Supreme Court in the case of Basir-ul-Huq v. State of West Bengal said that the prosecution could not by itself choose to proceed a particular section of the Indian Penal Code that is free of court sanction when the facts of the case constitute an offence covered under a different section requiring court sanction.

Moreover, Section 26 is applicable when two enactments cover an act or an offence without necessitating any procedural change or an alteration in the
punishment for the act(s).

The section would be applicable even if the procedures provided in the concerned statutes with regard to the prosecution of the offender are markedly different or the prescribed sentences also differ.

Company Secretary Executive Program JIGL General Clauses Act,1897 Descriptive Questions

Question.1: What are the objects of the General Clauses Act, 1897?
Answer:

The objects of the General Clauses Act, 1897

Moreover, they might include other substantive information; definitions and terms that are covered nowhere else.

Question.2: Give the definitions of the following as per this Act –

Abet
Affidavit
Document
Indian law

Answer:

Abet – This has the meaning as defined in Section 120B of the Indian Penal Code, 1860, i.e., to help another in committing a crime. The abettor is punished in the same manner as the person committing the crime.

Affidavit – Instead of giving evidence on oath, in certain cases information might be allowed to be given by way of affirmations or statements or declarations. It has the same importance as information given under oath.

Document – It means and includes any written matter, or matter recorded upon any material by way of letters, figures or marks, or by multiple means.

Indian Law – Includes any Act, ordinance, regulation, rule, order, bye-law or other similar forces of law.

Question.3: Explain the General Rule of Construction.
Answer:

The General Rule of Construction

General Rule of Construction these are the rules used to derive meaning from legal instruments, especially contracts and statutes. Generally, since these rules are not codified, most States take them to be merely customary guidance, not as binding guidelines.

Usually, when a case comes up before a Court, the presiding judge scrutinizes the circumstances surrounding the provisions of the applicable statute, the related laws, other relevant writings on the subject matter, and the likely object that the provision, clause or Act under consideration is deemed to fulfill.

Thereafter, the meaning derived by the judge would be applicable on that matter, unless questioned and reversed. In case the language of the statute is fairly clear, the requirement
for interpretation cannot arise.

There are two types of constructions of meanings-a strict or literal construction, or a liberal or equitable construction. Hence, a rule of construction is a general code that ascertains how an ambiguous term in a document or statute is to be interpreted and establishes what a court should do in case the intention is ambiguous.

Once a meaning is derived, it will be applicable to all similar cases unless challenged or it becomes outdated or redundant.

Question.4: Explain the following concepts in brief

Contra proferentem
Ejusdem Generis

Answer:

These are both rules of construction.

According to Contra Preferentem Rule, if a provision or clause in a contract is seen as ambiguous, the meaning should be so derived as to go against the interests of the person who had the clause included in the contract.

As per the rule of Ejusdem Generis, when in a law, specific things are listed out and then subsequently, they are referred to generally, the general reference will be applicable to the specifically listed things if they are all of the same kind.

If a statute is too vague, it will usually not be implemented, as it cannot have precise premises. In order to eliminate the need for recurring court interventions for deriving the meanings of vague terms in statutes, some States have enacted statutes that specify the meanings of certain terms.

Question.5: What are the different rules of interpretation?
Answer:

The different rules of interpretation

Ordinarily the interpretation of law is deemed to be solely the right of courts of law. As a result of this, they have developed a set of rules for helping them do that, so that there is some uniformity and lack of ambiguity in deriving the meanings of statutes.

Most of these rules are summarized in the rules of interpretation of statutes, which draftsmen usually keep in mind while drafting contracts and such. Such rules help in determining the meaning behind statutes and other legal documents. These rules of interpretation are as under:

General Clauses Act,1897 The Literal Rule of Interpretation: The primary and most important rule of interpretation is called the Literal Rule. This was established in the Sussex Peerage Case, and states that “The only rule for the construction of Acts of Parliament is, that they should be construed according to the intent of the Parliament which passed the Act.

If the words of the statute are in themselves precise and unambiguous, then no more can be necessary than to expound those words in their natural and ordinary sense.

The words themselves alone do, in such case; best declare the intention of the lawgiver.” However, if there is any doubt as to the meaning of the terms employed in the statute, one can look to the preamble, which, according to Chief Justice Dyer has a two-fold function.

It is both “a key to open the minds of the makers of the Act, and the mischief which they intend to redress”.

General Clauses Act,1897 Purposive Rule of Interpretation: In Halsbury’s Laws of England, it is stated:” Parliament intends that an ‘enactment shall remedy a particular mischief and it is therefore presumed that Parliament intends that the court, when considering, in relation to the facts of the instant case, which of the opposing constructions of the enactment-corresponds to its legal meaning, should find a construction which applies the remedy provided by it in such a way as to suppress that mischief.”

The doctrine originated in Haydon’s case where it was decided that for deriving the true meaning of statutes, four things are to be considered:

what was the common law before the making of the Act;
what was the mischief and defect for which the common law did not provide;
what remedy Parliament has resolved and appointed to cure the disease of the commonwealth; and
the true reason of the remedy.

General Clauses Act,1897 Harmonious Construction: The principle of harmonious construction says that the provisions of the Constitution or a statute should be harmoniously interpreted. As per Kelly: “Constitutional provisions should not be construed in isolation from all other parts of the Constitution, but should be construed as to harmonize with those other parts.

A provision of the constitution must be construed and considered as part of the Constitution and it should be given a meaning and an application which does not lead to conflict with other Articles and which confirms with the Constitution’s general scheme.

” When there are two provisions in a statute, that seem to be at odds with each other, they are to be interpreted in a manner that allows effect to be given to both. Any construction that renders either of them inoperative and useless should not be adopted except as a last resort. [Raj Krishna v. Binod].

General Clauses Act,1897 Rule of Beneficial Construction: This rule recommends giving the widest meaning possible to the statutes and its provisions so as to include all those eventualities that the makers intended to be included.

When there are multiple meanings possible to a section or a term, that meaning which gives the maximum possible relief and furthers the purpose of the legislation should be chosen.

This is to ensure that the intention of the legislation is satisfied. One thing to take care of while ensuring this is that the coverage of such liberal construction should not include those not intended to be covered by the Act or the statute.

General Clauses Act,1897 Strict Construction of Penal Statutes: Generally, the rule for the construction of a penal statute says that it should be strictly interpreted,express language of the statute should be respected; hence, a statute can be liberally constructed only when its words allow for it. B i.e.

If there are two possible and reasonable constructions to a penal provision, the Court usually goes with that construction which exempts the subject from penalty rather than the one which imposes a penalty.

So the meaning of a penal statute has to be derived narrowly in favor of the person proceeded against. Hence, in case of penal statutes, if a A reasonable interpretation in a particular case can avoid the penalty, the Court will generally lean towards that construction.

Question.6: Are retrospective amendments to statutes permitted?
Answer:

Where a particular date is not specified, a statute comes into force on the day that it receives the assent of the President. Moreover, the regulation shall come into force instantly on the ending of the day prior to its commencement unless expressly provided.

Where any Central legislation or any regulation made after the commencement of this Act repeals any previous Act such repeal shall not affect anything previously done under the Act.

It will also not affect any claim, privilege, responsibility or debt ensuing under the legislation so repealed, nor will it affect any punishment, forfeiture or penalty in relation to any offense committed under the legislation.

Moreover, any inquiry, litigation or remedy with regard to such claim, privilege, debt or responsibility or any inquiry, litigation or remedy may be initiated or continued; they will not be deemed ineffective after the repeal of the Act.

Relevant case laws are as under:

Cheviti Venkanna Yadav vs. State of Telangana and Others
In M/s. Rattan Lal and Co. and another etc. v. The Assessing Authority, Patiala and another, the court observed that after the legislature came into existence, it has the power and the authority to enact any law retrospectively or prospectively as long as the limits of the Constitution are not breached.

Question.7: What are the powers and functionaries provided under the General Clauses Act?
Answer:

These are covered under Sections 14-19 of the General Clauses Act, 1897.

General Clauses Act,1897 Section 14 – Powers given under this are exercisable from time to time, as the need arises. Unless and until a different power is specified by any Central Act or Regulation made after the commencement of this Act, the powers can be exercised as required.

General Clauses Act,1897 Section 15- If any Central Act or Regulation gives the power to appoint any person to fill any office or execute any function, then, unless otherwise provided, such appointment may be made either by name or by virtue of office.

General Clauses Act,1897 Section 16-The power to appoint includes the power to suspend or dismiss also, unless a different intention appears in the statute conferring such a power.

General Clauses Act,1897 Section 17-Substitution of functionaries – In any Central Act or Regulation made after the commencement of this Act, it shall be sufficient, for the purpose of indicating the relation of a law to the successors of any functionaries or of corporations having perpetual succession, to express its relation to the functionaries or corporations.

General Clauses Act,1897 Section 18 In any 1 (Central Act) or Regulation made after the commencement of this Act, in order to make a law applicable to the successors to a post, it shall be sufficient to express its relation to the functionaries or corporations.

General Clauses Act,1897 Section 19 In any Central Act or Regulation made after the commencement of this Act, it shall be sufficient to state that a law that applies to the chief or superior of an office shall apply also to the deputies or subordinates lawfully performing the duties of that post instead of their
superior.

Question.8: What does the Act provide regarding orders, rules etc. made under other enactments?
Answer:

Power as to Orders, Rules etc., made under Enactments Section 21 of the General Clauses Act provides the authority to issue additions, amendments, variations or cancellations to notifications, orders, rules or bye-laws already in existence.

It says that where “by any Central Act or Regulation, a power to issue notifications, orders, rules or bye-laws is conferred, then that power includes a power, exercisable in the like manner and subject to the like sanction and conditions (if any), to add to, amend, vary or rescind any notifications, orders, rules or bye-laws so issued.”

Company Secretary Executive Program JIGL General Clauses Act,1897 Descriptive Questions

Company Secretary Executive Program JIGL General Clauses Act,1897 Descriptive Questions

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