210 Interpretation of Statutes
210 Interpretation of Statutes
210 Interpretation of Statutes
CORE COURSE
210 INTERPRETATION OF STATUTES & PRINCIPLES OF LEGISLATION
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Thank you.
Refer (not in any particular order) :
Bare acts are a good source, in any subject of law.
http://www.lawyersclubindia.com/articles/Interpretation-of-Statute-5430.asp
https://www.everycrsreport.com/reports/97-589.html
https://www.bcasonline.org/Referencer2015-16/Taxation/Income
%20Tax/interpretation_of_taxing_statutes.html
http://lawtimesjournal.in/interpretation-of-statutes-important-questions/
http://www.caaa.in/Image/Interpretation%20of%20Statutes.pdf by CA. Rajkumar S.
Adukia
https://www.scribd.com/doc/7118910/Interpretation-of-Statutes#
http://lawtimesjournal.in/interpretation-of-statutes-important-questions/
http://14.139.60.114:8080/jspui/bitstream/123456789/714/17/Principles%20of
%20Interpretation%20of%20Statutes.pdf
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CONTENTS
210 Interpretation Of Statutes & Principles Of Legislation
Module-5) Practical Section ---> These are not part of the text of syllabus.
Module-6) Case-laws : -- These are not part of the text of syllabus. Neverthless,
questions on landmark cases are asked regularly .
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GO TO CONTENTS.
MODULE-1 QUESTIONS :
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GO TO CONTENTS.
MODULE-1 ANSWERS :
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Thus it is totally on the Judges to interpret such provisions so that both are
effective.
Meaning of the term Statute :
Statute generally is defined as the written will of the legislature solemnly
expressed according to the forms necessary to constitute it the law of the State.
Black's Law Dictionary : A Statute is a formal written enactment of a legislative
authority that governs a country, state, city, or county. Typically, statutes command
or prohibit something, or declare policy.
The word is often used to distinguish law made by legislative bodies from the
judicial decisions of the common law and the regulations issued by Government
agencies.
A statute is a will of legislature conveyed in the form of text.
Article 13 (3) (a) of the constitution : The Constitution of India does not use the
term Statute but it uses the term law. Law includes any ordinance, order, bye-
law, rule, regulation, notification, custom or usage having the force of law.
Therefore, a Statute is the will of the legislature and Indian Statute is an Act of the
Central or State Legislature.
Statutes include Acts passed by the Imperial or Provincial Legislature in Pre-
Independence days as well as Regulations.
Statutes generally refer to the laws and regulations of every sort, every provision
of law which permits or prohibit anything.
Classification of statutes :
A Statute may generally be classified with reference to its duration, nature of
operation, object and extent of application. Types of classifications of Statutes may
be elaborated as follows :
A. Classification with reference to basis of Duration :
(i) Perpetual statutes - It is perpetual when no time is fixed for its duration and
such a statute remains in force until its repeal which may be express or implied.
It is a Perpetual Statute when no time is fixed for its duration and such statute
remains in force until its repeal, which may be express or implied. It is perpetual
in the sense that it is not obligated by efflux of time or by non-user.
(ii) Temporary statutes - A Temporary statute is one where its duration is only
for a specified time and it expires on the expiry of the specified time unless it is
repealed earlier. The duration of temporary Statute may be extended by fresh
Statute or by exercise of power conferred under the original statute. The expired
statute may be revived by re-enacting it in similar terms or by enacting a statute
expressly saying that the expired Act is herewith revived.
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the whole body of statutory law on a subject in complete form repeating the
former statute.
(vii) Curative or validating Statute - It is passed to cure defects in the prior law
and too validate legal proceedings, instruments or acts of public and private
administrative powers which in the absence of such statute would be void for
want of conformity with existing legal requirements but which would have been
valid if the statute has so provided at the time of enacting.
(viii) Repealing Statute A statute which either expressly or by necessary
implication revokes or terminates another statute is a repealing statute.
(ix) Amending Statute It is a Statute which makes and addition to or operates
to change the original law so as to effect an improvement or more effectively
carry out the purpose for which the original law was passed.
What is interpretation of statutes ?
Interpretation means the art of finding out the true sense of an enactment by
giving the words of the enactment their natural and ordinary meaning.
The process of statute making and the process of interpretation of statutes are two
distinct activities. Statutes are made by legislatures/ executives, while
interpretation is done by the courts.
Interpretation of statutes is the process of ascertaining the true meaning of the
words used in a statute.
The Court is not expected to interpret arbitrarily and therefore there have been
certain principles which have evolved out of the continuous exercise by the Courts.
These are called principles of interpretation or rules of interpretation.
The object of interpretation of statutes is to determine the intention of the
legislature conveyed expressly or impliedly in the language used. As stated by
SALMOND, "by interpretation or construction is meant, the process by which the
courts seek to ascertain the meaning of the legislature through the medium of
authoritative forms in which it is expressed."
Interpretation thus is a familiar process of considerable significance. In relation to
statute law, interpretation is of importance because of the inherent nature of
legislation as a source of law.
India connection :
Interpretation is as old as language. Elaborate rules of interpretation were evolved
even at a very early stage of the Hindu civilization and culture. The importance of
avoiding literal interpretation was also stressed in various ancient text books
Merely following the texts of the law, decisions are not to be rendered, for, if such
decisions are wanting in equity, a gross failure of Dharma is caused.
Mimamsa Rules of Interpretation ("reflection" or "critical investigation") :
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GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
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Explain the meaning of term delegated legislation and state its limitations and
difference between conditional and delegated legislation. (Apr-2016)
ANS :
Refer :
Page-39, 53 of https://www.scribd.com/doc/251211773/Administrative-Law
http://www.shareyouressays.com/111363/what-is-the-importance-of-conditional-
legislation
http://mayank-lawnotes.blogspot.in/2007/01/administrative-law.html
What is delegated legislation ?
Introduction :
According to the traditional theory, the function of the executive is to administer
the law enacted by the legislature, and in the ideal State, the legislative power
must be exercised exclusively by the legislators who are directly responsible to
the electorate.
But, in truth, apart from pure administrative functions, the executive performs
many legislative and judicial functions also.
It has, therefore, been rightly said that the delegated legislation is so
multitudinous that a statute book would not only be incomplete but misleading
unless it be read along with delegated legislation which amplifies and
supplements the law of the land.
Definitions :
It is very difficult to give any precise definition of the expression delegated
legislation.
It is equally difficult to state with certainty the scope of such delegated
legislation.
Mukherjea, J. rightly says:
Delegated legislation is an expression which covers a multitude of confusion.
It is an excuse for the legislators, a shield for the administrators and a
provocation to the constitutional jurists...
According to Salmond, legislation is either supreme or subordinate. Whereas the
former proceeds from sovereign or supreme power, the latter flow from any
authority other than the sovereign power, and is, therefore, dependent for its
existence and continuance on superior or supreme authority.
Delegated legislation thus is a legislation made by a body or person other than
the Sovereign in Parliament by virtue of powers conferred by such sovereign
under the statute.
A simple meaning of the expression delegated legislation may be given as:
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and in the light of its application necessary changes could be made. Delegated
legislation thus allows employment and application of past experience.
5. Emergency : In times of emergency, quick action is required to be taken. The
legislative process is not equipped to provide for urgent solution to meet the
situation. Delegated legislation is the only convenient remedy. Therefore, in
times of war and other national emergencies, such as aggression, break down of
law and order, strike, 'bandh', etc. the executive is vested with special and
extremely wide powers to deal with the situation. There was substantial growth
of delegated legislation during the two World Wars. Similarly, in situation of
epidemics, floods, inflation, economic depression, etc. immediate remedial
actions are necessary which may not be possible by lengthy legislative process
and delegated legislation is the only convenient remedy.
6. Complexity of Modern Administration : The complexity of modem
administration and the expansion of the functions of the State to the economic
and social sphere have rendered it necessary to resort to new forms of
legislation and to give wide powers to various authorities on suitable occasions.
By resorting to traditional legislative process, the entire object may be frustrated
by vested interests and the goal of control and regulation over private trade and
business may not be achieved at all.
Conclusion :
The practice of empowering the executive to make subordinate legislation within
the prescribed sphere has evolved out of practical necessity and pragmatic needs
of the modem welfare State.
There has, therefore, been rapid growth of delegated legislation in all countries
and it has become indispensable in the modem administrative era.
What is conditional legislation ?
The idea behind conditional legislation is that the legislature makes the law which
is full and complete in all respects, but it is not brought into operation immediately.
The enforcement of the law is made dependent upon the fulfillment of a condition,
and what is delegated to the outside agency is the authority to determine, by
exercising its own judgment, whether or not the condition has been fulfilled.
Thus in conditional legislation, the law is there but its taking effect is made to
depend upon determination of some fact or condition by an outside agency.
For example, it would be a case of conditional legislation where the legislature
empowers an authority-
(a) To extend the duration of an Act within the maximum period fixed by the
legislature;
(b) To extend the existing laws to any territory;
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(c) To determine the extent to which limits fixed by law should be applied;
(d) To determine the time of applying law;
(e) To bring an Ordinance into force if the State Government is satisfied about
existence of an emergency and declares it to be in force in the State. The
Ordinance provides for the establishment of the special courts the time and
within the limits considered necessary by the State Government.
In Sardar Inder Singh v. State of Rajasthan, AIR 1957 SC 510
it was laid down that when an appropriate Legislature enacts a law and
authorizes an outside authority to bring it into force in such area or at such time
as it may decide, that is conditional and not delegated legislation.
In Lachmi Narain V. India, the Supreme Court has itself stated that
no useful purpose is served by calling a power conferred by a statute as
conditional legislation instead of delegated legislation. There is no difference
between them in principle, for conditional legislation like delegated legislation
has a content, howsoever small and restricted, of the law-making power itself,
and in neither case can the person be entrusted with the power act beyond the
limits which circumscribe the power.
In the High Court of Australia case of Baxter v. Ah- Way, C.L.R. 626 at page 637 :
The question raised in this Australian case related to the validity of certain
provisions of the Customs Act of 1901.
The Act prohibited the importation of certain goods which were specifically
mentioned and then gave power to the Governor- General-in-Council to
include, by proclamation, other goods also within the prohibited list.
The validity of the provision was challenged on the ground of its being an
improper delegation of legislative powers. This contention was repelled and it
was held that,
this was not a case of delegation of legislative power but of conditional legis-
lation of the type which was held valid by the Privy Council in the case of Reg.
v. Burah, 3 A.C.,889: 51 A. 178.
The aim of all legislatures is to project their minds as far as possible into the
future, and to provide in terms as general as possible for all contingencies
likely to arise in the application of the law. But it is not possible to provide
specifically for all cases and, therefore legislation from the very earliest times
and particularly in modern times, has taken the form of conditional legislation,
leaving it to some specified authority to determine :
(i) The circumstances in which the law shall be applied, or
(ii) Whether its operation shall be extended to, or Legislation, or
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GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
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Such a statute subsumes in its code both the pre-existing statutory provision
and also the common law rules relating to the matter.
Indication that the Act is a Code will generally be found in the preamble, if any
or in the long title.
It has been said that a Codifying Act is presumed not to alter the law unless a
contrary intention appears.
Example, the Code of Civil Procedure, 1908.
Lord Herschell Rule :
A Codifying Act is approached in quite a different spirit from a Consolidating Act.
The principles applicable to the construction of a codifying statute are well stated
in an oft-quoted passage of Lord Herschel :
I think the proper course is, in the first instance, to examine the language of
Statute and to ask what is its natural meaning, uninfluenced by any
considerations derived from the previous state of the law, and not to start
with inquiring how the law previously stood, and then, assuming that it was
probably intended to leave it unaltered, to see if the words of the enactment
will bear an interpretation in conformity with this view.
Features of Codifying Statutes :
a) A Codifying Statute may be a Code only with respect to a particular branch of
a subject. It may not cover other branches of the same subject.
the Payment of Bonus Act, 1965 does not cover all categories of bonus and is
restricted to the subject of profit bonus. The result is that the Act speaks as a
complete code on the subject of profit bonus and does not annihilate by
implication other different and distinct kinds of bonus such as customary
bonus.
b) In contrast to an ordinary enactment, a Code is self contained and complete.
the essence of a Codifying Statute is to be exhaustive on matters in respect of
which it declares the law and it is not the province of the judge to disregard or
go outside the letter of enactment according to its true construction.
c) When the Code covers a situation, it is not permissible to apply general
principles. The court has to proceed on the mandate of the Code only.
when the Code was silent or ambiguous, resort to the principles of private law
may be necessary so that the courts may resolve difficulties by application of
common law or equitable principles. If the statute law covers the situation, it
will be an impermissible exercise of the judicial function to go beyond the
statutory provision by applying such principles merely because they may
appear to achieve a fairer solution to the problem being considered.
On this principle, it was held in King Emperor vs. Dahu Raut4, that a matter
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language used in the Act itself without any reference to repealed statutes. If
Consolidating Act fails to provide guidance as to its proper interpretation, THEN
the repealed enactments maybe looked to.
The presumption that same words employed in the same act at different places
bear the same meaning has no application to Consolidating Acts when it is
shown that different provisions where same words occur had their origin in
different legislations.
For arriving at correct interpretation of a section in a Consolidating Statute,
courts have consulted the earlier repealed acts in which that section had its
origin.
In Director of Public Prosecutions v. Schildkamp1, the question related to the
construction of Section 332(3) of Companies Act, 1948. This section, prior to
Consolidating Act coming into force, was enacted in Companies Act, 1928 as
Section 75 (3). Therefore Section 332 (3) was construed in the light of the
provisions of the original 1928 Act.
Difference between Codifying Statutes and Consolidating statutes :
Codifying Statute :
1. It presents an orderly statement of leading rules of law on a given subject.
2. Former statute survives.
3. It is self contained and complete.
4. Unless the Code is ambiguous or silent on an issue, the court cannot go
outside the letter of law.
5. Presumption that the same words when used at different places in same act
would bear same meaning holds good and applicable.
Consolidating Statutes :
1. It presents whole body of statutory law on the subject repealing former
statute.
2. Former statutes are repealed.
3. It is not self contained and complete.
4. Judges may refer to earlier state of law and the judicial decisions interpreting
repealed acts.
5. Presumption has no application.
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What are the perpetual and temporary statutes ? Explain the consequences of the
repeal of temporary statute. (Apr-2012, Mar-2015, Apr-2016)
Distinguish between perpetual and temporary statutes and explain the effect of
expiry of temporary statutes. (Oct-2012, Apr2013, Mar-2014)
Discuss : Commencement, operation and repeal of statutes.
Write short note : Repeal of the statute. (Oct-2012, Apr2013)
ANS :
Refer :
http://www.alameenlaw.in/modelpapers-dec2016.html
Commencement, operation and repeal of statutes :
Effect of repeal :
According to the General Clauses act, 1897, when this act or regulation made after
the commencement of this act repeals any enactments hitherto made or hereafter
to be made, then unless a different intention appears, the repeal shall not :-
a. revive anything not in force or existing at the time at which the repeal takes
effect
b. affect the previous operation of any enactment so repealed or anything duly
done or suffered there under
c. affect any rights, privilege, obligation or liability acquired or incurred under
any enactment so repealed
d. effect any penalty, forfeiture or punishment incurred in respect of any offence
committed against any enactment so repealed
e. affect any investigation, legal proceedings or remedy in respect of any such
right, privilege, obligation liability, penalty, forfeiture, or punishment as foresaid;
and such investigation, legal proceeding, or remedy may be instituted, continued
or punishment may be imposed as if the repealing Act or regulation had not
been passed.
Effect of expiry of temporary statutes :
When the duration of a statute is for a specified time it is temporary statute.
After a temporary statute expires it cannot be made effective by merely amending
the same.
Revival of the expired statute can be done only by re-enacting it on similar terms
or expressly saying that the expired act is herewith revived.
The effect of expiry of temporary statute can be discussed under the following sub
headings :
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1) Legal proceedings under expired statute : after the expiry of an act can the
legal proceedings under that act be initiated or continued?
If that act has a saving clause its effect would be similar to Sec 6 of the
General clause act which says repeal of the statute shall not affect the legal
proceeding.
But if such saving clause is not present than the proceedings started under
the temporary statute would terminateas soon as the statute expires. Thus in
the absence of a saving clause no person can be prosecuted/ convicted under
the expired act and the on-going proceedings will be terminated at once with
the expiry of the temporary act.
Case law : Rayala corporation vs director of enforcement.
2) Notifications, orders, rules etc made under temporary statute:-
with the expiry of temporary act, any notification, ordered or rules issued
under it will also come to an end and cannot be revived even if the provisions
of expired act is re-enacted.
3) Expiry does not make statute dead for all purpose :-
even without the saving clause the expiry does not make the statute dead for
all purpose.
The nature of rights and obligations under the act has to be considered in
determining whether such rights and obligations are continuing after the
expiry of the act or no.
case law : In State of Orissa vs Bhupendra Kumar, it was held that a person
who has been prosecuted and sentenced during the continuance of a
temporary act for violating its provisions cannot be released before he serves
out his sentence, even if the temporary act expires before the expiry of full
period of the sentence.
4) Repeal by temporary statute :- if a temporary statute repeals an existing
statute, the question which arises is if the repealing temporary statute expires
will the repealed statute revive?
Answer is : This will depend on the construction of the repealing statute.
Mode of Repeal : (i) Express Repeal and (ii) Repeal by implication
(i) Express repeal :
Express repeal of a statute is usually made by stating that the earlier statute or
a particular provision therein is thereby repealed.
Usually enactments repealed are mentioned in a schedule attached to the
repealing statute.
Such express repeal needs no construction of the later statute. The use of any
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particular form of words is not necessary to bring about an express repeal. All
that is necessary is that the words used show an intention to abrogate the Act or
provision in question.
The usual form is to
use the words 'is or are hereby repealed' and to mention the Acts sought to
be repealed in the repealing section or to catalogue them in a Schedule.
use of words 'shall cease to have effect', is also not uncommon. When the
object is to repeal only a portion of an Act words 'shall be omitted'
arenormally used.
The legislative practice in India shows that 'omission' of a provision is treated as
amendment which signifies deletion of that provision and is not different from
repeal.
It has been held that there is no real distinction between repeal and an
amendment.
It has also been held that where a provision of an Act is omitted by an Act and
the said Act simultaneously re-enacts a new provision which substantially
covers the field occupied by the repealed provision with certain modification,
in that event such renactment is regarded having force continuously and the
modification or changes are treated as amendment coming into force with
effect from the date of enforcement of re-enacted provision.
(ii) Repeal by implication :
Instead of express repeal, repeal may also occure by implicaion in new provision.
Eg substitution of a provision results in repeal of the earlier provision and its
replacement by the new provision. Substitution thus combines repeal and fresh
enactment.
The usual forms of repeal by implication are :
a) all provisions inconsistent with the Act are repealed, or
b) all Acts and parts of Acts in conflict with the provisions of this Act are
hereby repealed, or 'all laws and parts of laws in conflict herewith are
expressly repealed.
Provisions of this character leave the question open as to what laws are
inconsistent and are intended to be so repealed.
All rules of law which apply to implied repeals generally will be applicable to
repeals brought about in the aforesaid manner.
Scope of express or implied repeal : The question often arises as to the extent or
scope of the repeal.
Where a repealing clause expressly refers to a portion of the prior Act, the
remainder of such Act will not usually be repealed, as presumptions raised that no
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earlier one and provides for a different punishment, or varies procedure, THEN the
earlier statute is repealed by implication.
Similarly where a latter statute expresses in affirmative language its applicability to
whole of India, which would imply the repeal of an earlier statute or colonial law on
the same subject.
Hence a statute is repealed by implication in the following cases, namely
a) If its provisions are plainly repugnant to those of the subsequent statute..
b) If the two standing together would lead to wholly absurd consequences
c) if the entire subject-matter of the first is taken away by the second.
Consequences of Repeal :
Under the common law rule the consequences of repeal of a statute are very
drastic.
Except as to transactions past and closed, a statute after its repeal is as completely
obliterated as if it had never been enacted.
The effect is to destroy all inchoate rights and all causes of action that may have
arisen under the repealed statute. Therefore, leaving aside the cases where
proceedings were commenced, prosecuted and already brought to a finality before
the repeal, no proceeding under the repealed statute can be commenced or
continued after the repeal.
Another result of repeal under the common law rule is to revive the law in force at
the commencement of the repealed statute. Thus if one statute is repealed by a
second which in turn is repealed by a third, the effect is to revive the first statute
unless a contrary intention is indicated in the third statute.
The confusion resulting from all these consequences gave rise to the practice of
inserting saving clauses to prevent the obliteration of a statute in spite of its
repeal to keep intact rights acquired or accrued and liabilities incurred during its
operation and permit continuance or institution of any legal proceedings or
recourse to any remedy which may have been available before the repeal for
enforcement of such rights and liabilities. Thus, offences committed during the
continuance of a statute can now (due to saving clause) be prosecuted and
punished even after its repeal, a course which would not have been possible under
the common law rule of complete obliteration of a repealed statute.
The saving of rights and liabilities is in respect of those rights and liabilities which
were acquired or incurred under a repealed statute and not under the general law
which is modified by a statute.
In respect of rights and liabilities acquired or incurred under the general law
which is modified by a statute the inquiry should be as to how far the statute is
retrospective.
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The distinction between what is, and what is not a right preserved by the provisions
of section 6,General Clauses Act is often one of great fineness. What is unaffected
by the repeal of a statute is a right acquired or accrued under it and not a mere
"hope or expectation of', or liberty to apply for, acquiring a right.
A distinction is drawn between a legal proceeding for enforcing a right acquired
or accrued and a legal proceeding for acquisition of a right. The former is saved
whereas the latter is not.
GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
Interpretation must be effective and workable." Discuss with case laws. (Oct-2012,
Mar-2014, Mar-2015)
ANS :
Refer :
http://www.caaa.in/Image/Interpretation%20of%20Statutes.pdf by CA. Rajkumar
S. Adukia
http://www.lawyersclubindia.com/articles/Interpretation-of-Statute-5430.asp
What is interpretation of statutes ?
Interpretation of something means ascertaining the meaning or significance of that
thing or ascertaining an explanation of something that is not immediately obvious.
Construction and Interpretation of a statute is an age-old process and as old as
language.
Interpretation of statute is the process of ascertaining the true meaning of the
words used in a statute.
When the language of the statute is clear, there is no need for the rules of
interpretation. But, in certain cases, more than one meaning may be derived from
the same word or sentence. It is therefore necessary to interpret the statute to find
out the real intention of the statute.
Interpretation of statutes has been an essential part of English law since Heydon's
Case in 1854 and although it can seem complex, the main rules used in interpretation
are easy to learn.
The concept of interpretation of a Statute cannot be static one. Interpretation of
statutes becomes an ongoing exercise as newer facts and conditions continue to arise.
The purpose of Interpretation of Statutes is to help the Judge to ascertain the
intention of the Legislature not to control that intention or to confine it within the
limits, which the Judge may deem reasonable or expedient.
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GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
Discuss in detail : Rules of Statutory Interpretation, (i) Primary Rules, (ii) Literal
Rule.
Discuss : Literal Rule.
Explain in detail with illustration the golden rule as applied to interpretation of
statutes and discuss when the rule can be ignored. (Oct-2012, Apr2013, Mar-2014,
Apr-2016)
What is the Golden rule of Interpretation? Explain this rule with important and
historical decisions on this issue. (Apr-2012, Mar-2015)
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Write short note : Heydon's Case (Mischief Rule). (Apr-2012, Oct-2012, Apr2013,
Mar-2014, Mar-2015, Apr-2016)
Explain : Subjective and objective interpretation. (Apr-2016)
Explain : Purposive Interpretation/ Approach.
Explain in detail the rule of Harmonious Construction with case laws. (Apr-2012,
Oct-2012, Apr2013, Mar-2015, Apr-2016)
What is Harmonions or Consistent interpretation ? Explain the rule relating to it.
(Mar-2014)
Are above 2 questions different ? Compare syllabus para-1.5.5 and 4.2.1)
Discuss : Noscitur a sociis,
Discuss : Reddendo singula singulis.
Write short note : Principle of Ejusdem Generis. (Apr-2012, Oct-2012, Mar-2014,
Mar-2015)
ANS :
Refer :
https://www.scribd.com/doc/7118910/Interpretation-of-Statutes
https://en.wikipedia.org/wiki/Purposive_approach
http://www.legalservicesindia.com/article/article/harmonious-and-beneficial-
construction-1941-1.html
http://hanumant.com/IOS-Unit4-RulesOfInterpretation.html
https://www.scribd.com/doc/7118910/Interpretation-of-Statutes
Introduction :
The term interpretation means To give meaning to.
Governmental power has been divided into three wings namely the legislature, the
executive and the judiciary.
Interpretation of statues to render justice is the primary function of the judiciary. It
is the duty of the Court to interpret the Act and give meaning to each word of the
Statute.
The most common rule of interpretation is that every part of the statute must be
understood in a harmonious manner by reading and
construing every part of it together.
A Verbis legis non est recedendum :
The maxim A Verbis legis non est recedendum means that you must not vary
the words of the statute while interpreting it.
The object of interpretation of statutes is to determine the intention of the
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GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
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GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
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It essentially asks the question : By creating an Act of Parliament what was the
"mischief" that, (i) the previous or existing law did not cover, and (ii) this act
covers.
This rule was developed by Lord Coke in Sir John Heydon's Case, 1584, where it
was stated that there were four points to be taken into consideration when
interpreting a statute :
What was the common law before the making of the act?
What was the "mischief or defect" for which the common law did not provide?
What remedy the parliament hath resolved and appointed to cure the disease of
the commonwealth?
What is the true reason of the remedy?
The application of this rule gives the judge more discretion than the literal
and the golden rule as it allows him to effectively decide on Parliament's intent.
Case law :
Smith v Hughes, 1960 : Under the Street Offences Act 1959, it was a crime for
prostitutes to "loiter or solicit in the street for the purposes of prostitution".
Now, the defendants were calling to men in the street from balconies and
tapping on windows. They claimed they were not guilty as they were not in
the "street."
The judge applied the mischief rule to come to the conclusion that they were
guilty as the intention of the Act was to cover the mischief of harassment from
prostitutes.
Mischief rule is of narrower application than the golden rule or the plain meaning
rule, in that it can only be used to interpret a statute and only when the
statute was passed to remedy a defect in the common law.
This rule has often been used to resolve ambiguities in cases in which the literal
rule cannot be applied. As seen In Smith v Hughes, the mischief approach gave a
more sensible outcome than that of the literal approach.
Advantages :
The Law Commission sees it as a far more satisfactory way of interpreting acts
as opposed to the Golden or Literal rules.
It usually avoids unjust or absurd results in sentencing.
Disadvantages :
It is seen to be out of date as it has been in use since the 16th century, when
common law was the primary source of law and parliamentary supremacy was
not established.
It gives too much power to the unelected judiciary which is argued to be
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undemocratic.
In the 16th century, the judiciary would often draft acts on behalf of the king
and were therefore well qualified in what mischief the act was meant to remedy,
however, such is not the case any more.
Advantages :
The Law Commission sees it as a far more satisfactory way of interpreting acts
as opposed to the Golden or Literal rules.
It usually avoids unjust or absurd results in sentencing
Disadvantages :
It is seen to be out of date as it has been in use since the 16th century, when
common law was the primary source of law and parliamentary supremacy was
not established.
It gives too much power to the unelected judiciary which is argued to be
undemocratic.
In the 16th century, the judiciary would often draft acts on behalf of the king
and were therefore well qualified in what mischief the act was meant to remedy,
however, such is not the case any more.
GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
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Subjective : can be used when nothing tangible is at stake. When you are watching a movie
or reading a book for pleasure, being subjective and getting caught up in the world of the
characters makes your experience more enjoyable. If you are discussing any type of art,
you have to keep in mind that everyones opinions on a particular piece are subjective.
Objective : it is important to be objective when you are making any kind of a rational
decision. It might involve purchasing something or deciding which job offer to take. You
should also be objective when you are reading, especially news sources. Being objective
when you are meeting and having discussions with new people helps you to keep your
concentration focused on your goal, rather than on any emotions your meeting might
trigger.
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GO TO MODULE-1 QUESTIONS.
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GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
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Rule of ejusdem generis puts the words just in relation to the nearby words. ie Rule
of Noscitur A Sociis is wider than the rule of Ejusdem Generis, which is only an
application of the former.
The language of the phrase can be used as a guide to arrive at the true meaning of
the word.
Note that,
Noscitur a sociis is only a rule of construction and it cannot be used when it is
clear that the word with wider meaning is deliberately used in order to increase
the scope.
It can only be used when the intention of the legislature in using a word with
wider sense along with the words with narrower meaning is not clear.
Further, this rule can only be used when the associated words have similar
meaning. It cannot be used when the words have disjoint meanings. For
example, in the case of Lokmat Newspapers vs Shankarprasad AIR 1999, it was
held that the words "discharge" and "dismissal" do not have the same analogous
meaning and so this rule cannot be applied.
Words that are coupled together take their colour from each other. The more
general is restricted to the less general.
Illustration :
cows, bulls, goats, sheep and other animals. Here, the expression other
animals cannot refer to lions and tigers; it refers only to domestic animals.
old, discarded, unserviceable or obsolete machinery stores or vehicles including
waste products. Here, the expression old was construed to refer to machinery
that had become non-functional or non-usable.
Case law :
In Foster v Diphwys Casson (1887) 18 QBD 428, involving a statute which stated
that explosives taken into a mine must be in a "case or canister".
Here the defendant used a cloth bag. The courts had to consider whether a
cloth bag was within the definition.
Under the rule of Noscitur a sociis, it was held that the bag could not have
been within the statutory definition, because parliament's intention was
referring to a case or container of the same strength as a canister.
In State of Assam vs R Muhammad AIR 1967, SC made use of this rule to arrive
at the meaning of the word "posting" used in Article 233 (1) of the Constitution.
It held that since the word "posting" occurs in association with the words
"appointment" and "promotion", it took its colour from them and so it means
"assignment of an appointee or a promotee to a position" and does not mean
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GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
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Order banning arms, ammunition or gun powder or any other goods. Here,
in this order any other goods was construed to refer to goods similar to
arms, ammunition or gun powder.
Any person who entered into or works under a contract with an employer
whether the contract be any way of manual labour, clerical work or otherwise
. ---> Held that ejusdem generis is not applicable since manual labour and
clerical work do not belong to a single limited genus.
GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
What are the subsidiary rules for Interpretation ? Explain in detail the rules with
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If two interpretations are possible then the one which preserves the
constitutionality of the particular statutory provisions should be adopted and the
one which renders it unconstitutional and void should be rejected.
Non-compliance of mandatory provisions has penal consequences where as non-
compliance of directory provisions would not furnish any cause of action or
ground of challenge.
Maxwell says
that it is impossible to lay down any general rule for determining whether a
provision is mandatory or directory.
The supreme court of India is stressing time and again that
the question whether a statute is mandatory or directory, is not capable of
generalization and that in each case the court should try and get at the real
intention of the legislature by analyzing the entire provisions of the enactment
and the scheme underlying it.
In other words it depends on the intent of the legislature and not upon the
language in which the intent is clothed.
The intent of the legislature must be ascertained not only from the
phraseology of the provision, but also from its nature, design and
consequences which would follow from construing it in one form or another.
Same word, same meaning ; Different Word Different Meanings :
Same Word Same Meaning, Different Words Different Meanings fall within the
broad category of linguistic canons of construction and aid in the application and
interpretation of statutes.
Same Word Same Meaning, Different Words Different Meanings are important tools
in statutory interpretation which can resolve various problems while interpreting
statutes and thus ensure a just, fair and equitable result.
Presumption that words are used in the same sense throughout a statute.
When different words are used in the same statute, presumption that they are not
used in the same sense.
According to the rule of Same Word Same Meaning it is presumed that the same
word used in the same section or in different parts of the same statute bears the
same meaning and effect throughout the entire statute. The rule of Different Words
Different Meanings is a corollary to the rule of Same Word Same Meaning.
It must be noted that both the rules are flexible and are not hard and fast rules.
The presumptions thus are not very strong and can be rebutted by taking into
account the context in which the words are used, the object and scheme of the Act
etc
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Manuals of style recognize that the comma is used to indicate a slight break in
a sentence. But according to the Rule of the Last Antecedent, adding a comma
after a series of antecedents not only doesn't sever the modifier from the last
noun or phrase in the series, it in fact operates remotely on all the
antecedents, binding them to the modifier. Nothing in the general literature on
punctuation suggests such a mechanism.
The last antecedent rule is also applied to contract interpretation.
Stare Decisis :
MEANS - to stand by decisions and not to disturb what is settled.
A principle of law which has become settled by a series of decisions is generally
binding on the courts and should be followed in similar cases.
This doctrine is the basis of common law.
The older the decision, the greater is its authority and the more truly it is
accepted as stating correct law.
A precedent by long recognition may mature into Stare Decisis.
This maxim has less relevance in constitutional cases.
Non Obstante Clause :
Summary :
Notwithstanding anything contained in this Act or in some particular provision in
the Act or in some particular Act or in any law for the time being in force
Later enactment prevails over the former.
Special enactment prevails over the general one.
Resolves conflicts between laws.
Detailed discussion :
The expression "non obstante means notwithstanding.
It is a legislative device to give such a clause an overriding effect over the law or
provision that qualifies such clause.
When a clause begins with notwithstanding anything contained in the Act or in
some particular provision/provisions in the Act, it is with a view to give the
enacting part of the section, in case of conflict, an overriding effect over the Act
or provision mentioned in the non obstante clause. It conveys that in spite of the
provisions or the Act mentioned in the non obstante clause, the enactment
following such expression shall have full operation.
The clause is used to override the mentioned law/ provision in specified
circumstances.
Parasuramaiah vs. Lakshamma AIR 1965 AP 220
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things for some reason. E.g. A foreigner was treated to be a Roman citizen for
the purpose of jurisdiction.
Legal fiction is treated in the provisions of an enactment by using the term is
deemed.The deeming provision is for the purpose of assuming the existence of
fact does not really exist.
In New India Assurance Co. Ltd v Complete Insulation Pvt Ltd, the Supreme
Court held that
legal fiction created under Section 157 of the Motor Vehicles Act, 1988, the
transfer of 3rd party insurance is deemed to have effect from buyer to seller.
In Bengal Immunity Co Ltd v State of Bihar, The Supreme Court held that
the legal fiction should not be extended beyond its legitimate limits.
In Pandurang Vinayak v State of Bombay, the Supreme Court held that
for the purpose of legal fiction, the word ordinance is to be read as
enactment.
In Bombay corporation v CIT Bombay, Section 43 of the Income Tax Act provided
that under certain circumstances, an agent is for all the purpose of this Act,
deemed to be an agent of a non-resident person. Such agent is deemed to be an
assessee.
In Avatar Singh v State of Punjab, it was held that
rules framed in contravention of the Electricity Act, 1910 are separate and
hence theft of electricity is not an offence under the IPC.
Use of Or and And :
Summary :
Or is normally disjunctive and And is conjunctive, but at times they are read
as vice versa.
Owner and Master to be guilty Does a person have to be both owner and
master of a ship to be held guilty? Or are both person guilty?
Section 7 of the Official Secrets Act, 1920, reads :
Any person who attempts to commit any offence under the principal Act or
this Act, or solicits or incites or endeavours to persuade another person to
commit an offence, or aids or abets *and* does any act preparatory to the
commission of an offence.
Here, the word and printed in Italics was read as or, because by reading
and as and the result produced was unintelligible and absurd and against
the clear intention of the Legislature.
Detailed discussion :
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Prima Facie it may seem that interpretation of the words and and or need not
been considered essential, are be subsidiary and do not need much attention.
However, several times, it is just through the interpretation of the words and
and or that the whole meaning of the Statute has been changed and the
Judicature has evolved a new principle altogether which was never expected.
The aim of this article is to lay light on the importance and the need for correct
interpretation of the words and and or, as an aid to interpretation to ensure
that effect is given to the true intent of the Legislature.
The word or is normally disjunctive and and is normally conjunctive but at
times they are read as vice versa to effectuate the manifest intent of the
legislature as disclosed from the context. As stated by SCRUTTON L.J, You do
sometimes read or as and in a statute. But you do not do it unless you are
obliged because or does not generally mean and and and does not
generally mean or.
However, the rule is that or is normally disjunctive and and is normally
conjunctive and a departure from the same is not available unless the very aim
and purpose of the Statute so requires. The rationale being that if the
Legislature wishes to use and in a particular statutory provision, then it has
every right to do and nothing prevents them for doing so. So if the word and
has not been used and instead the word or has been used, it is obvious that
the Legislature has purposively used the word or. Unless, it is not proved, that
there was some reason or difficulty that prevented the Legislature from using
the and, literal interpretation has to be applied to the statutory provision and
the rule - or is normally disjunctive and and is normally conjunctive has to be
given effect to
The rule which permits deviation from the usual and ordinary interpretation of
the words and and or, is an extension of the Purposive Theory wherein
Courts have conferred upon themselves the power to extend the meaning of the
and and or and give them a meaning and interpretation, which though not
directly stated by the Legislature, yet, aims at achieving the real purpose of
Legislature.
Construction of General Words :
Examples of general words in any legal proceeding whatsoever, any connection
whatever, every place, in all its form.
Normal rule general words must receive a general construction unless there is
something in the Act itself such as the subject-matter with which the Act is dealing
or the context in which the said words are used to show the intention of the
Legislature that they must be given a restrictive meaning.
Words and particularly general words cannot be read in isolation; their colour and
content are derived from their context.
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General words and phrases, however wide and comprehensive they may be, in
their literal sense must usually be construed as being limited to the actual object of
the Act.
Casus Omissus :
The Casus Omissus rule provides that omissions in a statute cannot be supplied by
judicial construction.
This rule signifies that omissions in a statute cannot as a general rule be supplied
by interpretation. The Courts have the liberty only to remedy the logical defects in
words and phrases used in the statute and the intention of the legislature. The
court prefers the interpretation in accordance with the words used without adding a
new word.
In Parkinson v. Plunton while interpreting catering establishment in Wages Act,
1943 the House of Lords preferred the interpretation in accordance with the
language used therein and did not extend to cover the boarding and lodging.
The approach of the court is not to apply certain words which are not found in
the statute.
However, if the intention of the legislature is faulty, either too broad or too narrow,
the Courts are bound to accept them as they are given and they cannot either add,
alter, modify, deduct or amend from the given Statute, as such an action would
amount to legislation rather than construction or interpretation.
There is no scope for importing into the statute words which are not there. Such
importation would be, not to construe, but to amend the statute. Even if there be a
casus omissus, the defect can be remedied only by Legislation and not by judicial
interpretation.
The duty of the Court to try and harmonise the various provisions of an Act passed
by the legislature, but not to amend the words used by legislature. It is certainly
not the duty of the Court to stretch the words used by the legislature to fill the
gaps or omissions in the provisions of an Act, as given in Hiradevi v. District Board.
In the case of Commissioner of Income Tax, Central Calcutta v. National Taj Traders
The purpose of the Legislature has to be established from the exact words of the
Statute, where they arise in their accurate and precise form. But if the same is
implied in vague and ambiguous language, the Courts may seek the aid of every
reasonable and permissible aids to interpretation. This principle of Casus
Omissus cannot be supplied by the Court except in case of clear necessity and
when the reasons for it are found in the four corners of the Statute itself.
Expressio unius est excusio alterius :
The express mention of one person or thing is the exclusion of another.
Where the statutory language is plain and the meaning clear, there is no scope for
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GO TO MODULE-1 QUESTIONS.
GO TO CONTENTS.
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GO TO CONTENTS.
MODULE-2 QUESTIONS :
What are the internal aids of interpretation of Statutes ? Explain any four in detail.
(Oct-2012, Apr2013, Mar-2015)
State the Internal Aids for Interpretation and discuss "Heading", "Punctuations and
"Definitions'. (Apr-2012, Apr-2016)
Explain briefly internal aid to Construction. Discuss Title, Preamble, Headings,
Marginal Notes, Punctuation and illustration in detail. (Mar-2014)
Write short notes : Marginal notes (Apr2013, Mar-2014)
Explain : Sections and sub-sections, exceptions, saving clauses, Schedules,
Non-obstante clause.
Write short note : Importance of illustration to section in the interpretation of
section. (Oct-2012, Apr2013)
Write short note : Proviso. (Oct-2012, Apr2013)
Explain in detail the external aids for the Interpretation. (Mar-2015, Apr-2016)
Discuss : Following external aids : (i) Translations, (ii) Travaux Preparations, (iii)
Statutes in pari material, (iv) Contemporanea Exposito, (v) Debates, inquiry
commission report and Law Commission reports.
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When can the External Aids be taken for Interpretation? Discuss when and how
"Later Political, Social, Economic Developments and Scientific Inventions",
"Dictionaries" and "Foreign Judgment", can be used for Interpretation ? (Apr-
2012)
When can the External Aids be taken for Interpretation ? Discuss when and how
"Parliamentary history", Dictionaries and "Foreign Judgments" be used for
interpretation ? (Oct-2012)
Discuss External aids of interpretation of statutes and explain "precedents', decision
of foreign courts and parliamentary histories. (Apr2013, Mar-2014)
Explain in detail : Importance of Foreign Judgments for Interpretation (Mar-2015)
GO TO CONTENTS.
MODULE-2 ANSWERS :
What are the internal aids of interpretation of Statutes ? Explain any four in detail.
(Oct-2012, Apr2013, Mar-2015)
State the Internal Aids for Interpretation and discuss "Heading", "Punctuations and
"Definitions'. (Apr-2012, Apr-2016)
Explain briefly internal aid to Construction. Discuss Title, Preamble, Headings,
Marginal Notes, Punctuation and illustration in detail. (Mar-2014)
Write short notes : Marginal notes (Apr2013, Mar-2014)
Explain : Sections and sub-sections, exceptions, saving clauses, Schedules,
Non-obstante clause.
Write short note : Importance of illustration to section in the interpretation of
section. (Oct-2012, Apr2013)
Write short note : Proviso. (Oct-2012, Apr2013)
ANS :
Refer :
http://www.caaa.in/Image/Interpretation%20of%20Statutes.pdf by CA. Rajkumar
S. Adukia
https://www.bcasonline.org/Referencer2015-16/Taxation/Income
%20Tax/interpretation_of_taxing_statutes.html
www.indialegalhelp.com/files/interpretation.pptx
Intro :
An Aid, on the other hand is a device that helps or assists. For the purpose of
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construction.
Statute is headed by a long title and it gives the description about the object,
scope or purpose of an Act. It begins with the words- An Act to ............. For
e.g. The long title of the Criminal Procedure Code, 1973 is An Act to
consolidate and amend the law relating to criminal procedure.
However, its useful only to the extent of removing the ambiguity and confusions
and is not a conclusive aid to interpret the provision of the statute.
A long title of a Legislation may not control, circumscribe or widen the scope of
the legislation, if the provisions thereof are otherwise clear and unambiguous,
but if the terms of the legislation are capable of both a wider and a narrower
construction, that construction which would be in tune with the avowed object
manifested in the preamble or declared in the long title, ought to be accepted.
In Re Kerala Education bill, the Supreme Court held that
the policy and purpose may be deduced from the long title and the preamble.
In Manohar Lal v State of Punjab, Long title of the Act is relied as a guide to
decide the scope of the Act.
In Kedar Nath v. State of W Bengal, s 4 of the West Bengal Criminal Law
Amendment (Special Courts) Act, 1949, was interepted.
This section, under which, the start Government was empowered to choose as
to which particular case should go for reference to the Special Courtand be
tried under a special procedure, was challenged as violative of Art 14 of the
Constitution.
Rejecting the contention, the Supreme Court held that
the long title of the Act which said as Act to provide for the more speedy
trial and more effective punishment of certain offences was clear enough to
give the state government discretion as to which offences deserved tried by
the special courts under a special procedure.
Although the title is a part of the Act, it is in itself not an enacting provision and
though useful in case of ambiguity of the enacting provisions, is ineffective to
control their clear meaning.
Short Title -
The short title of an Act is for the purpose of reference & for its identification.
It ends with the year of passing of the Act. E.g. The Indian Penal Code, 1860;
The Indian Evidence Act, 1872. The Short Title is generally given at the
beginning with the words- This Act may be called...............
For e.g Section 1 of The Indian Evidence Act, 1872, says This Act may be
called, The Indian Evidence Act, 1872.
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Even though short title is the part of the statute, it does not have any role in the
interpretation of the provisions of an Act.
Preamble :
Expresses the scope, object and purpose of the Act more comprehensively than the
Long Title.
Preamble is the Act in a nutshell. It is a preparatory statement. It contains the
recitals showing the reason for enactment of the Act.
There may be no exact correspondence between preamble and enactment. The
enactment may go beyond, or it may fall short of, the indications gathered from the
Preamble.
It is one of the cardinal principles of construction that where the language of the
Act is clear, the preamble must be disregarded.
But where the object or meaning of the enactment is not clear, the preamble may
be resorted to explain it. Again, where very general language is used in an
enactment which, it is clear must be intended to have a limited application, the
preamble may be used to indicate to what particular instances, the enactment is
intended to apply.
We cannot, therefore, start with the preamble for construing the provisions of an
Act, though we could be justified in resorting to it, and we will be required to do so,
if we find that language used by the Parliament is ambiguous or is too general.
If the Preamble is clear one way and the enacting part is clear the other way, the
latter shall prevail.
Preamble of Constitution used for interpreting all laws in India
The preamble is an intrinsic aid in the interpretation of an ambiguous act.
If any doubts arise from the terms employed by the Legislature, it has always been
held a safe means of collecting the intention to call in aid the ground and cause of
making the statute and to have recourse to the preamble.
In Kashi Prasad v State, the court held that
even though the preamble cannot be used to defeat the enacting clauses of a
statute, it can be treated as a key for the interpretation of the statute.
Headings : marginal notes :
Headings are of two kinds
one prefixed to a section and
other prefixed to a group or set of sections.
Heading is to be regarded as giving the key to the interpretation and the heading
may be treated as preambles to the provisions following them.
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In Mahesh Chandra Sharma V.Raj Kumari Sharma, (AIR 1996 2 6SC 869), it was
held that
illustrations are parts of the Section and help to elucidate the principles of the
section.
Exceptions and saving clause :
Exception restrains the enacting clause to particular cases.
The exception operates to affirm the operation of the statute to all cases not
excepted and excludes all other exceptions.
Saving Clause are generally added when a statute is repealed and re-enacted.
Saving Clause is inserted to safeguard rights which would be lost by the general
provision.
A saving clause repugnant to the body of the Act is void.
It does not give a further right to the party.
Ex: Principle of Consideration has exceptions laid down under section 25 of the
Indian contract Act.
Provisos :
The normal function of a proviso is to except and deal with a case which would
otherwise fall within the general language of the main enactment, and its effect is
confined to that case.
It is added to the enactment to qualify or create an exception.
It does not state a general rule.
It must be construed with reference to the preceding parts of the clause to which it
is appended.
Differs from exception and saving clause . <----
It is subordinate to the main section.
It is used to remove special cases from the general enactment and provide for
them specifically.
There may be cases in which the language of the statute may be so clear that a
proviso may be construed as a substantive clause. But whether a proviso is
construed as restricting the main provision or as a substantive clause, it cannot be
divorced from the provision to which it stands as a proviso.
CIT vs. Ajax Products Ltd. (1964) 55 ITR 741 (SC)
It must be construed harmoniously with the main enactment.
Explanations :
An Explanation is added to a section to elaborate upon and explain the meaning of
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GO TO MODULE-2 QUESTIONS.
GO TO CONTENTS.
Explain in detail the external aids for the Interpretation. (Mar-2015, Apr-2016)
Discuss : Following external aids : (i) Translations, (ii) Travaux Preparations, (iii)
Statutes in pari material, (iv) Contemporanea Exposito, (v) Debates, inquiry
commission report and Law Commission reports.
When can the External Aids be taken for Interpretation? Discuss when and how
"Later Political, Social, Economic Developments and Scientific Inventions",
"Dictionaries" and "Foreign Judgement", can be used for Interpretation ? (Apr-
2012)
When can the External Aids be taken for Interpretation ? Discuss when and how
"Parliamentary history", Dictionaries and "Foreign Judgements" be used for
interpretation ? (Oct-2012)
Discuss External aids of interpretation of statutes and explain "precedents', decision
of foreign courts and parliamentary histories. (Apr2013, Mar-2014)
Explain in detail : Importance of Foreign Judgements for Interpretation (Mar-2015)
ANS :
Refer :
http://www.caaa.in/Image/Interpretation%20of%20Statutes.pdf by CA. Rajkumar
S. Adukia
https://www.bcasonline.org/Referencer2015-16/Taxation/Income
%20Tax/interpretation_of_taxing_statutes.html
www.indialegalhelp.com/files/interpretation.pptx
http://interpretationofstatutes.blogspot.in/2016/01/external-aids-to-construction-
of.html
Intro :
When internal aids are not adequate, court has to take recourse to external aids.
The external aids are very useful tools for the interpretation or construction of
statutory provisions.
As opposed to internal aids to construction there are certain aids which are external
to the statute. Such aids will include,
Dictionaries
Translations
Travaux Preparations : Parliamentary Debates : Parliamentary history
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In case where an old Act has been repealed, it loses its operative force.
Nevertheless, such a repealed part may still be taken into account for construing
the unrepealed part.
For the purpose of interpretation or construction of a statutory provision, courts
can refer to or can take help of other statutes. It is also known as statutory aids.
For the purpose of interpretation or construction of a statutory provision, courts
can refer to or can take help of other statutes. It is also known as statutory aids.
The General Clauses Act, 1897 is an example of statutory aid.
The application of this rule of construction has the merit of avoiding any
contradiction between a series of statutes dealing with the same subject, it allows
the use of an earlier statute to throw light on the meaning of a phrase used in a
later statute in the same context.
On the same logic when words in an earlier statute have received an authoritative
exposition by a superior court, use of same words in similar context in a later
statute will give rise to a presumption that the legislature intends that the same
interpretation should be followed for construction of those words in the later
statute.
Reference to English Law :
Sometimes, English Law is also referred because they have the same system of
jurisprudence as ours.
Assistance in elucidating general principles and construing acts in pari materia.
Indian statutes should be interpreted with reference to the facts of Indian life.
Example The Company law originated in Great Britain and the Companies Act
of India is modelled on British law and experience.
When the provisions of the Indian law and the English Acts are alike the decision
of the English Courts throw good light and the reasons may be persuasive.
Inquiry commission reports :
<work on this>
Law Commission reports :
Reports of Commissions including Law Commission or Committees including
Parliamentary Committees preceding the introduction of a Bill can also be referred
to in the Court as evidence of historical facts or of surrounding circumstances or of
mischief or evil intended to be remedied.
Law Commissions Reports can also be referred to where a particular enactment or
amendment is the result of recommendations of Law Commission Report.
In Rosy and another v State of Kerala and others, (2000) 2 SCC 230
The Supreme Court considered Law Commission of India, 41st Report for
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GO TO MODULE-2 QUESTIONS.
GO TO CONTENTS.
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GO TO CONTENTS.
MODULE-3 QUESTIONS :
GO TO CONTENTS.
MODULE-3 ANSWERS :
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In construing a doubtful or ambiguous statute, the Courts will presumethat it was the
intention of the legislature to enact a valid, sensible and just law, and one which
should change the prior law no further than maybe necessary to effectuate the
specific purpose of the act in question.
Unless the statute contains express words to the contrary it is assumed that the
following presumptions of statutory interpretation apply, each of which may be
rebutted by contrary evidence.
Presumptions represent the accepted judicial view of a range of circumstances that
have been predetermined to be the way in which every manifestation of those
circumstances will be viewed, until any evidence to the contrary is produced. These
tend to arise from theoretical and practical principles of the law.
Presumptions which are part of the syllabus : <detailed discussion on each given
separately>
Statutes are valid
Statutes are territorial in operation :
Presumption as to jurisdiction
Presumption against what is inconvenient or absurd
Presumption against intending injustice
Presumption against impairing obligations or permitting advantage from ones own
Wrong
Prospective operation of statutes :
Other presumptions :
A statute does not alter the existing common law. If a statute is capable of two
interpretations, one involving alteration of the common law and the other one not,
the latter interpretation is to be preferred.
If a statute deprives a person of his property, say by nationalization, he is to be
compensated for its value.
A statute is not intended to deprive a person of his liberty. If it does so, clear words
must be used. This is relevant in legislation covering, for example, mental health
and immigration.
A statute cannot impose criminal liability without proof of guilty intention. Many
modern statutes rebut this presumption by imposing strict liability; for e.g.
dangerous driving.
GO TO MODULE-3 QUESTIONS.
GO TO CONTENTS.
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GO TO MODULE-3 QUESTIONS.
GO TO CONTENTS.
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GO TO MODULE-3 QUESTIONS.
GO TO CONTENTS.
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It is not possible to curtail jurisdiction of High Court and Supreme Court except by an
amendment to the relevant provisions in the constitution.
Jurisdiction of other courts :
The general presumption is that a statute should not be given such an
interpretation as to take away the jurisdiction of the court unless the language of
the statute is unambiguous and clear.
Since jurisdiction has been given to court by legislation, it is the legislation alone
which can take away the jurisdiction.
If any statute provides for an express bar of jurisdiction of a civil or other court,
then the scheme of the particular Act must provide adequate alternative remedies.
If the constitutionality of any provision is to be challenged, the writ of certiorari is
the only recourse.
There is no sympathy for legislative provisions which oust jurisdiction of courts,
because of the fact that the subjects are deprived of a remedy.
If jurisdiction is conferred to a tribunal, the intention of the parliament is presumed
to have jurisdiction to correct the decision of inferior tribunal.
Finality clause :
Many modern statutes contain provisions which attempt to take away the
jurisdiction of courts by making the decision of the tribunal final or conclusive.
HOWEVER, the remedy by certiorari is never to be taken away by any statute
except by the most explicit and clear words.
The word final means without an appeal. It does not mean without recourse to the
writ of certiorari.
It makes the decision final on fact but not on law.
In Dhulabhai v State of MP, the Supreme court held that
if a statute gives finality to the orders of a special tribunal, the jurisdiction of
civil court must be held to excluded only if there is an adequate alternate
remedy similar to what civil remedy would be.
In R v Medical Appeal Tribunal, Lord Denning said,
the word final only means without appeal and the remedy of certiorari cannot
be taken away because it is not an appeal.
Creating new and enlarging existing jurisdiction :
It is presumed that a statute does not create new jurisdiction or enlarge existing
jurisdiction.
Express language is required if an Act is to be so interpreted, as to create new
jurisdiction or enlarge existing jurisdiction.
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GO TO MODULE-3 QUESTIONS.
GO TO CONTENTS.
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of the status.
Conclusion :
The presumption that "a statute can not intend to do injustice" is in the foundation
of the Golden Rule of statutory interpretation.
GO TO MODULE-3 QUESTIONS.
GO TO CONTENTS.
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GO TO MODULE-3 QUESTIONS.
GO TO CONTENTS.
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by collector, as per the amended provisions of the land acquisition act. The said
order was challenged before the high court. The court observed that
the award was passed by the collector on 3.3.1982 i.e. prior to 30.4.1982
when the land acquisition amendment will was introduced. Therefore the
respondents in whose favor award was already passed by the collector prior to
30.4.1982 are not entitled to the benefit of additional component. The benefit
could be given only if the proceedings for acquisition were pending and award
was not passed by the collector.
Likewise,
Statutes regulating transfers and contracts are not retrospective
Penal statutes which create offenses or which have the effect of increasing
penalties for existing offenses will only be prospective by reason of the
constitutional restriction imposed by article 20 of the constitution.
Conclusion :
The law is presumed to be of prospective application unless expressly or by
necessary implication made to have retrospective operation.
Penal, fiscal statutes and such other statutes which impairs vested rights or create
new obligations is usually given prospective operation.
No person has vested right in procedural law, thus it can be given prospective
operation.
GO TO MODULE-3 QUESTIONS.
GO TO CONTENTS.
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GO TO CONTENTS.
MODULE-4 QUESTIONS :
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GO TO CONTENTS.
MODULE-4 ANSWERS :
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the former.
Similarly, when the language used by the legislature fails to achieve the objective
of a statute, an extended meaning could be given to it to achieve that objective,
*IF* the language is fairly susceptible to the extended meaning.
Case law : In the case of B Shah vs Presiding Officer, AIR 1978, (i) Section 5
of Maternity Benefits Act, 1961 was is question, (ii) an expectant mother could take
12 weeks of maternity leave on full salary. In this case, a women who used to work
6 days a week was paid for only 6x12=72 days instead of 7x12=84 days.
SC held that the words 12 weeks were capable of two meanings and one
meaning was beneficial to the woman. Since it is a beneficial legislation, the
meaning that gives more benefit to the woman must be used.
It is said by MAXWELL, that Beneficial Construction is a tendency and not a rule.
The reason is that this principle is based on human tendency to be fair,
accommodating, and just.
Instead of restricting the people from getting the benefit of the statute, Court tends
to include as many classes as it can while remaining faithful to the wordings of the
statute.
Case law : In the case of Alembic Chemical Works vs Workmen AIR 1961,
an industrial tribunal awarded more number of paid leaves to the workers than
what Section 79(1) of Factories Act recommended. This was challenged by the
appellant.
SC held that the enactment being a welfare legislation for the workers, it had
to be beneficially constructed in the favor of worker and thus, if the words are
capable of two meanings, the one that gives benefit to the workers must be
used.
In U Unichoyi vs State of Kerala, 1963, the question was whether setting of a
minimum wage through Minimum Wages Act, 1948 is violative of Article 19 (1)
(g) of the constitution because the act did not define what is minimum wage and
did not take into account the capacity of the employer to pay.
It was held that the act is a beneficial legislation and it must be construed in
favor of the worker. In an under developed country where unemployment is
rampant, it is possible that workers may become ready to work for extremely
low wages but that should not happen.
Limitation On The Application Of Beneficial Construction : If on the application of
the rule of beneficial construction, the court finds that it is doing complete justice
and delivering a fair judgment then there is no question of why should not such
rule is applied? But there are certain restrictions which the court has to take care of
which at the time of application have to be adhered to
1. Where the courts find that by the application of the rule of beneficial
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GO TO MODULE-4 QUESTIONS.
GO TO CONTENTS.
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the service assumes the form of public expenditure rendered to the public at
large.
Rules of interpretation
1. Charging Section :
The section that charges the tax must have clear words.
Before taxing any individual it must be clearly established that the person to be
taxed falls within the purview of the charging section by clear words.
There is no implication of the law. If a person cannot be brought within the four
corners of the law, he is free from tax liability.
Case law :
In Calcutta Jute Manufacturing Co. v Commercial Tax officer, the Supreme
Court held that in case of interpreting a taxing statute, one has to look into
what is clearly stated.
There is no room for searching the intentions, presumptions or equity.
In Mathuram Agarwal v State of Madhya Pradesh, the Supreme Court held
that
words cannot be added or substituted to find a meaning in a statute so as
to serve the intention of the legislature.
Every taxing statute must contain three aspects;
subject of tax,
person to be taxed and
the rate of tax.
2. Strict and favourable construction :
Taxing enactment should be strictly construed and the right to tax should be
clearly established.
Equitable construction should not be taken into account.
Courts should not strain words and find unnatural meaning to fill loopholes.
If the provision can be interpreted in two ways, then the one favoring the
assessee must be taken into consideration.
Case law :
In Saraswati Sugar mills v Haryana State Board, The Supreme Court held that
every Act of the parliament must be read according to the strict natural
construction of its words.
3. Clear Intention to impose or increase tax :
The intention to impose or increase tax or duty must be clear and in
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unambiguous language.
4. Prospective operation :
The cardinal principle of tax laws is that the law to be applied to assessee is the
law in force in the assessment year unless otherwise provided expressly or by
necessary implication.
No retrospective effect to fiscal statute is possible unless the language of the
statute is very clear and plain.
Fiscal Statute are generally not retrospective otherwise expressly provide by
necessary implications.
5. Meaning in common parlance :
In finding out the meaning of a taxing statute, the meaning in common usage,
parlance special in commercial and trade circles must be considered.
Case law :
In Annapurna Biscuit Manufacturing Co. v Commissioner of Sales tax, the
Supreme Court held that
statute imposing a tax should be construed in the way which they are
understood in ordinary language in the area in area in which the law is the
force.
In Dunlop India Ltd V Union of India, the Supreme Court held
latex comes within the meaning of rubber for the purpose of tax.
6. Imposition of Tax by authority of law :
The taxes and assessment can only be imposed by an authority established
under a statute. The tax can be levied only by an Act of the parliament.
Case law :
In Atlas Cycles Industries Ltd v State of Haryana, the Supreme Court held that
notification imposing a tax cannot be deemed to be extended to new areas
in the municipality.
7. Machinery provision :
Machinery provision means the procedure for calculation and collection of tax.
The person who claims an exemption has to establish it.
Case law :
In National Tag Traders v Commissioner of Income Tax, the Supreme Court
held that a fiscal statute must be construed strictly.
8. No presumption as to tax :
As regards to imposition of tax, no presumption exists. It cannot be drawn by
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GO TO MODULE-4 QUESTIONS.
GO TO CONTENTS.
What is the difference between remedial and Penal statute? Explain in detail as to
how penal statutes have to be interpreted. (Apr-2012, Apr-2016)
"Remedial statutes revise liberal interpretation where as penal statutes is strictly
construed. Explain. (Oct-2012, Apr2013, Mar-2014)
ANS :
Refer :
http://www.legalservicesindia.com/article/article/remedial-and-penal-statutes-
1470-1.html
https://www.scribd.com/doc/7118910/Interpretation-of-Statutes
Intro :
<Take general intro to interpretation of statutes from elsewhere in this doc>
Remedial Statutes :
Remedial statutes and statutes which have come to be enacted on demand of the
permanent public policy generally receive a liberal interpretation.
On constructing a remedial statute the courts ought to give to it the widest
operation which its language will permit. They have only to see that the particular
case is within the mischief to be remedied and falls within the language of the
enactment.
Eg The labour and welfare legislations should be broadly and liberally construed
and while construing them due regard to the Directive Principles of State Policy
(Part IV) and to any international convention on the subject must be given by the
courts.
In MC Mehta v. State of Tamil Nadu
the Child Labour (Prohibition and Regulation) Act, 1986 was construed as
remedial statute.
The Court, having regard to the Directive Principles in Arts 39(e), 39(f), 4(i), 45
and 47 of the Constitution, the fundamental rights in Art 24, the International
convention on the right of the child, not only directed a survey of child labour
and its prohibition but also directed payment of Rs. 25,000 as contribution by
the employer to the Child Labour-Rehabilitation-cum-Welfare Fund or alternative
employment to parent/ guardian of the child to ameliorate poverty and lack of
funds for welfare of the child which is the main cause of child labour.
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In case of a social benefit oriented legislation like the Consumer Protection Act
1986 the provisions of the consumer to achieve the purpose of the enactment but
without doing violence to the language. If a section of a remedial statute is capable
of two constructions, that construction should be preferred which furthers the
policy of the Act and is more beneficial to those in whose intrest the Act may have
been passed.
The liberal construction must flow from the language used and the rule does
not permit placing of an unnatural interpretation on the words contained in the
enactment nor does it permit the raising of any presumption that protection of
widest amplitude must be deemed to have been conferred upon those for whose
benefit the legislation may have been enacted.
Likewise, in case there is any exception in the beneficial legislation which curtails
its operation, the Court in case of doubt should construe it narrowly so as not to
unduly expand the area or scope of exception.
CrPC 1973 and Muslim Women (Protection of Rights on Divorce) Act 1986 :
In Noor Saba Khatoon v. Mohd Qasim, it was held that,
effect of a beneficial legislation is not construed to be defeated by a subsequent
legislation except through a clear provision.
Therefore, the rights of the minor children, irrespective of their religion, to get
maintenance from their parents as provided in 127 of the Criminal Procedure
Code 1973 was construed not to have been taken away in respect of Muslims by
the Muslim Women (Protection of Rights on Divorce) Act 1986.
3(b) of the MW (PRD) Act 1986 enables a divorced Muslim woman to claim
maintenance for the minor children up to the age of two years only from her
former husband.
It has been held that the right of children to claim maintenance under 125 Cr
PC is independent of the right of divorced mother to claim maintenance for the
infant children and the former is not affected by the Muslim Women Act 1986.
In Central Railway Workshop, Jhasi v. Vishwanath, the question before the court
was whether time-keepers, who prepared pay sheet of the workshop staff, maintain
leave account, dispose of settlement case and maintain records for other statistical
purposes, were workers as defined in the Factories Act 1948.
2 defined as a person employed directly or through any agency, whether for
wages or not in any manufacturing process used for a manufacturing process or
any other kind of work incidental to or connected with the manufacturing
process.
The court gave a liberal construction to the definition of worker and held that
time-keepers were workers being employed in a kind of work incidental to or
connected with the manufacturing process.
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In Motor Owners Insurance Co Ltd v. JK Modi, the words any one accident
occurring in 95(2) (a) of the Motor Vehicles Act 1939 was construed.
Having regard to the beneficial purpose of the Act, the words were construed to
signify as many accidents as the number of persons involved in the accident to
enable the limit of Rs. 20,000 payable by the insurance company to apply to
each person injured.
In Kuldip Kaur v. Surinder Singh, the Supreme court dealt with 125(3) of CrPC.
The court drew a distinction between mode of enforcement and mode of
satisfaction and held that even after a sentences of imprisonment, the person
concerned remained liable for arrests of maintenance for non-payment of which
he was imprisoned and the liability for payment could be satisfied only by
payment and not by suffering the sentence.
Penal Statutes :
The principle that a statute enacting an offence or imposing a penalty is to be
strictly construed is not of universal application which must necessarily be
observed in every case.
The rule was originally evolved to mitigate the rigour of monstrous sentences for
trivial offences and although that necessity and that strictness has now almost
vanished, the difference in approach made to a penal statute as against any other
statute still persists.
According to Lord Esher, the settled rule of construction of penal sections is that
if there is a reasonable interpretation which will avoid the penalty in any
particular case we must adopt that construction. If there are two reasonable
constructions we must give the more lenient one.
Interpretation of penal provisions must be in consonance with the principles
underlying fundamental rights.
Any provision which visits an accused with adverse consequences without
affording him any remedy to disprove an item of evidence which stands against
his innocence, is inconsistent with the philosophy enshrined in Art 21. It was
held by the Supreme Court that they should so interpret such a provision as to
dilute it to make it amenable to Art 21 of the Constitution.
When words employed in a penal statute are not clear the principle against double
penalisation would be applied. Failure to comply with a statute may attract penalty.
But only because a statute attracts penalty for failure to comply with the statutory
provisions, the same in all situations would not call for a strict construction.
This section provides for recovery of maintenance granted in favour of a wife or
minor child by issue of a warrant if the order for maintenance is not complied
with without sufficient cause and enables the magistrate, if the amount still
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remains unpaid to sentence the person against whom the order is made to
imprisonment for a period of one month.
An interpretation which strikes a balance between enforcement of law and
protection of valuable human right of accused (right of privacy) must be resorted
to.
105 of the Evidence Act 1872 says that the burden to prove that the case of
the accused falls within an exception to a statutory offence lies on him. But the
question whether the defence set up by an accused is really a defence of an
exception or a defence setting up non-existence of a fact which is an ingredient
of the offence to be proved by the prosecution depends upon the construction of
the particular statute.
In applying and interpreting a penal statute, public policy is also taken into
consideration.
In a recent case, the House of Lords held that consensual sadomasochistic
homosexual encounters which occasioned actual bodily harm to the victim were
assaults occasioning actual bodily harm, contrary to 47 of the Offences Against
the Person Act 1861 and unlawful wounding contrary to 20 0f the Act,
notwithstanding the victims consent to the acts inflicted on him.
The following are some of the propositions important in relation to strict
construction of penal statutes :
(a) if the scope of prohibitory words cover only some class of persons or some
well defined activity, their scope cannot be extended to cover more on
consideration of policy or object of the statute.
(b) prohibitory words can be widely construed only if indicated in the statute. On
the other hand if after full consideration no indication is found the benefit of
construction will be given to the subject.
(c) if the prohibitory words in their own signification bear wider meaning which
also fits in with the object or policy of the statute.
In JK (Bombay) Ltd v. Bharti Matha Mishra, it was held that
the expression officer or employee of a company applies not only to the existing
officer or employee but also includes past officers or employees where such an
officer or employee either
wrongfully obtains possession of any property, or
wrongfully withholds the same after the termination of his employment.
The expression would also include the legal heirs or representatives. It was held
by the court that the penal statutes should not be so liberally construed with the
aid of presumptions, assumptions and implications as to rope in for the purposes
of prosecution such persons against whom the prosecution is not intended by the
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dynamic.
To ensure that the new laws are consistent with the basic structure of the
constitution, the constitution must be interpreted in broad and liberal manner
giving affect to all its parts and the presumption must be that no conflict or
repugnancy was intended by its framers.
For example, applying the same logic,
the provisions relating to fundamental rights have been interpreted broadly and
liberally in favor of the subject.
Similarly, various legislative entries mentioned in the Union, State, and
Concurrent list have been construed liberally and widely.
The following are some of the key principles applied specially in interpreting the
provisions of the constitution
Principle of Harmonious construction
Doctrine of pith and substance
Doctrine of Colourable legislation
Principle of Ancillary powers
Principle of Occupied field
Residuary power
Doctrine of repugnancy
Principle of Territorial Nexus
Doctrine of stare decisis
Doctrine of prospective overruling
GO TO MODULE-4 QUESTIONS.
GO TO CONTENTS.
Write short note : Doctrine of Pith and Substance. (Apr-2012, Oct-2012, Apr2013,
Mar-2014, Mar-2015)
ANS :
Refer :
http://lawtimesjournal.in/interpretation-of-statutes-important-questions/
http://hanumant.com/IOS-Unit8-Constitution.html
Intro :
Pith means true nature or essence and substance means the essential nature
underlying a phenomenon.
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Thus, the doctrine of pith and substance relates to finding out the true nature of a
statute.
This doctrine is widely used when deciding whether a state is within its rights to
create a statute that involves a subject mentioned in Union List of the Constitution.
The basic idea behind this principle is that an act or a provision created by the
State is valid if the true nature of the act or the provision is about a subject that
falls in the State list.
The case of State of Maharashtra vs F N Balsara AIR 1951 illustrates this principle
very nicely.
In this case, the State of Maharashtra passed Bombay Prohibition Act that
prohibited the sale and storage of liquor. This affected the business of the appellant
who used to import liquor. He challenged the act on the ground that import and
export are the subjects that belong in Union list and state is incapable of making
any laws regarding it.
SC rejected this argument and held that the true nature of the act is prohibition of
alcohol in the state and this subject belongs to the State list. The court looks at the
true character and nature of the act having regard to the purpose, scope, objective,
and the effects of its provisions. Therefore, the fact that the act superficially
touches on import of alcohol does not make it invalid.
Thus, as held in State of W Bengal vs Kesoram Industries, 2004,
the courts have to ignore the name given to the act by the legislature and must
also disregard the incidental and superficial encroachments of the act and has to
see where the impact of the legislation falls. It must then decide the
constitutionality of the act.
Principle of Incidental or Ancillary Powers :
This principle is an addition to the doctrine of Pith and Substance. What it means is
that the power to legislate on a subject also includes power to legislate on ancillary
matters that are reasonably connected to that subject.
It is not always sufficient to determine the constitutionality of an act by just
looking at the pith and substance of the act. In such cases, it has to be seen
whether the matter referred in the act is essential to give affect to the main subject
of the act.
For example, power to impose tax would include the power to search and seizure to
prevent the evasion of that tax.
Similarly, the power to legislate on Land reforms includes the power to legislate on
mortgage of the land.
However, if a subject is explicitly mentioned in a State or Union list, it cannot be
said to be an ancillary matter.
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For example, power to tax is mentioned in specific entries in the lists and so the
power to tax cannot be claimed as ancillary to the power relating to any other
entry of the lists.
In the case of State of Rajasthan vs G Chawla AIR 1959, held
the power to legislate on a topic includes the power to legislate on an ancillary
matter which can be said to be reasonably included in the topic.
The underlying idea behind this principle is that the grant of power includes
everything necessary to exercise that power.
However, this does not mean that the scope of the power can be extended to any
unreasonable extent. Supreme Court has consistently cautioned against such
extended construction.
For example, in R M D Charbaugwala vs State of
Mysore, AIR 1962, SC held that betting and gambling is
a state subject as mentioned in Entry 34 of State list
but it does not include power to impose taxes on
betting and gambling because it exists as a separate
item as Entry 62 in the same list.
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K C Gajapati Narayan Deo vs State of Orissa, AIR 1953 is a famous case that
illustrates the applicability of this doctrine.
In this case, SC observed that the constitution has clearly distributed the
legislative powers to various bodies, which have to act within their respective
spheres. These limitations are marked by specific legislatives entries or in some
cases these limitations are imposed in the form of fundamental rights of the
constitution.
Question may arise whether while enacting any provision such limits have been
transgressed or not. Such transgression may be patent, manifest or direct.
But it may also be covert, disguised, or indirect. It is to this later class of
transgression that the doctrine of colourable legislation applies. In such case,
although the legislation purports to act within the limits of its powers, yet in
substance and in reality, it transgresses those powers.
The transgression is veiled by mere pretense or disguise. But the legislature
cannot be allowed to violate the constitutional prohibition by an indirect method.
In this case, the validity of Orissa Agricultural Income Tax (Amendment) Act
1950 was in question. The argument was that it was not a bona fide taxation law
but a colourable legislation whose main motive was to artificially lower the
income of the intermediaries so that the state has to pay less compensation to
them under Orissa Estates Abolition Act, 1952.
SC held that it was not colourable legislation because the state was well within
its power to set the taxes, no matter how unjust it was. The state is also
empowered to adopt any method of compensation. The motive of the legislature
in enacting a law is totally irrelevant.
A contrasting case is of K T Moopil Nair vs State of Kerala, AIR 1961.
In this case, the state imposed a tax under Travencore Cochin Land Tax Act,
1955, which was so high that it was many times the annual income that the
person was earning from the land.
The SC held the act as violative of Articles 14 and 19(1)(f) in view of the fact
that in the disguise of tax a persons property was being confiscated.
Similarly, in Balaji vs State of Mysore, AIR 1963,
SC held that the order reserving 68% of the seats for students belonging to
backward classes was violative of Article 14 in disguise of making a provision
under Article 15(4).
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prevailto the extent of the repugnancyand the provisions of the Central Act
would become void provided the State Act has been passed in accordance
with clause (2) of Article 254.
3. Where a law passed by the State Legislature while being substantially
within the scope of the entries in the State List, entrenches upon any of the
Entries in the Central List, the constitutionality of the law may be upheld by
invoking the doctrine of pith and substanceif on an analysis of the provisions
of the Act, it appears that by and large the law falls within the four corners of
the State List and entrenchment, if any, is purely incidental or
inconsequential.
4. Where, however, a law made by the State Legislature on a subject covered
by the Concurrent List is inconsistent with and repugnant to a previous law
made by Parliament, then such a law can be protected by obtaining the
assent of the President under Article 254(2) of the Constitution. The result of
obtaining the assent of the President would be that so far as the State Act is
concerned, it will prevail in the State and overrule the provisions of the
Central Act in their applicability to the State only. Such a state of affairs will
exist only until Parliament may at any time make a law adding to, or
amending, varying or repealing the law made by the State Legislature under
the proviso to Article 254. Now, the conditions which must be satisfied before
any repugnancy could arise are as follows :
That there is a clear and direct inconsistency between the Central Act and
the State Act.
That such an inconsistency is absolutely irreconcilable.
That the inconsistency between the provisions of the two Acts is of such
nature as to bring the two Acts into direct collision with each other and a
situation is reached where it is impossible to obey the one without
disobeying the other.
Thereafter, the court laid down following propositions in this respect :
That in order to decide the question of repugnancy it must be shown that the
two enactments contain inconsistent and irreconcilable provisions, so that
they cannot stand together or operate in the same field.
That there can be no repeal by implication unless the inconsistency appears
on the face of the two statutes.
That where the two statutes occupy a particular field, but there is room or
possibility of both the statutes operating in the same field without coming into
collision with each other, no repugnancy results.
That where there is no inconsistency but a statute occupying the same field
seeks to create distinct and separate offences, no question of repugnancy
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arises and both the statutes continue to operate in the same field.
In the case of Govt. of A.P. v. J.B. Educational Society, the court held that :
1. There is no doubt that both Parliament and the State Legislature are
supreme in their respective assigned fields. It is the duty of the court to
interpret the legislations made by Parliament and the State Legislature in such
a manner as to avoid any conflict. However, if the conflict is unavoidable, and
the two enactments are irreconcilable, then by the force of the non obstante
clause in clause (1) of Article 246, the parliamentary legislation would prevail
notwithstanding the exclusive power of the State Legislature to make a law
with respect to a matter enumerated in the State List.
2. With respect to matters enumerated in List III (Concurrent List), both
Parliament and the State Legislature have equal competence to legislate. Here
again, the courts are charged with the duty of interpreting the enactments of
Parliament and the State Legislature in such manner as to avoid a conflict. If
the conflict becomes unavoidable, then Article 245 indicates the manner of
resolution of such a conflict.
The Court also said that :
1.Where the legislations, though enacted with respect to matters in their
allotted sphere, overlap and conflict. Second, where the two legislations are
with respect to matters in the Concurrent List and there is a conflict. In both
the situations, parliamentary legislation will predominate, in the first, by
virtue of the non obstante clause in Article 246(1), in the second, by reason of
Article 254(1).
2.Clause (2) of Article 254 deals with a situation where the State legislation
having been reserved and having obtained Presidents assent, prevails in that
State; this again is subject to the proviso that Parliament can again bring a
legislation to override even such State legislation.
In the case of National Engg. Industries Ltd. v. Shri Kishan Bhageria, it was held
that
the best test of repugnancy is that if one prevails, the other cannot prevail.
GO TO MODULE-4 QUESTIONS.
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prospective-overruling-in-reference-administrative-law-essay.php
http://www.legalserviceindia.com/articles/prul.htm
Intro :
Doctrine of Prospective Overruling originated in the American Judicial System.
The literal meaning of the term overruling is to overturn or set aside a
precedent by expressly deciding that it should no longer be controlling law.
Similarly prospective means operative or effective in the future.
So, combined together, prospective overruling means construing an earlier
decision in such a way that it would not have a binding effect to the parties of
the original suit or to the cases decided on the basis of that judgment, and yet
changing the law, applying it only prospectively to the future cases.
For example, if principle A is laid down in the case of X v. Y and later on the court
disagrees with the Principle A, it changes the principle prospectively without
affecting the judgment of X v. Y and thus the new principle will apply only to the
future cases.
Prospective Overruling in India : Golak Naths Case :
The doctrine of prospective overruling was for the first time adopted in the case of
Golak Nath v. State of Punjab [5] (herein referred as Golaknaths case). Since then
it has been applied in many case laws and has also been a point of debate of many
jurists. Through this article, an attempt is made at briefly analyzing the stand of
the Indian Judiciary on adopting the doctrine of Prospective overruling.
It is very important in this context to analyze the holding of the Judiciary in
Golaknaths case. In Golak Nath case the doctrine is defined as :
The doctrine of "prospective overruling" is a modern doctrine suitable for a fast
moving society. It does not do away with the doctrine of state decision but
confines it to past transactions.
While in Strict theory it may be said that the doctrine 'involves the making of
law, what the court really does is to declare the law but refuse to give
retroactivity to it.
It is really a pragmatic solution reconciling the two conflicting doctrines, namely,
that a court finds the law and that it does make law and it finds law but restricts
its operation to the future.
It enables the court to bring about a smooth transition by correcting, its errors
without disturbing the impact of those errors on past transactions.
By the application of this doctrine the past may be preserved and the future
protected. Our Constitution does not expressly of by necessary implication speak
against the doctrine of prospective overruling."
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Because it was the first time that the Court was applying a doctrine which had
evolved in a different system of law so the Court laid down certain provisions
restricting the application of the doctrine in the Indian system. It was laid down
that
(1) The doctrine of prospective overruling can be invoked only in matters arising
under our Constitution;
(2) It can be applied only by highest court of the country, ie. The Supreme Court
as it has the constitutional jurisdiction to declare law binding on all the Courts as
it has India;
(3) The scope of the retrospective operation of the law declared by the Supreme
Court superseding its earlier decisions is left to its discretion to be moulded in
accordance with- the justice of the cause or matter before it.
Difference in application of the doctrine in USA and India :
It is pertinent to note that the doctrine of prospective overruling, which has its
roots in the American judicial system and from where the import was drawn from in
the Golaknath case, has been applied in a very narrow manner by Justice Subba
Rao.
In the case of Golaknath, it had been used for invalidating constitutional
amendments which had been in force for a long time and which in turn had become
the basis of mass legislation affecting agrarian economy.
In contract, in U.S.A., this doctrine had been applied in cases, as seen above in
case of changes in judicial views as regards the scope and interpretation of
constitutional provisions generally.
Also, one more distinction lies in the application vis--vis the invalidation effect.
In United States, the doctrine was used to hold the impugned law invalid from
the date of the decision and not earlier.
But, in Golaknath, all the constitutional amendments were to remain valid for
ever; only the principle of non-amendability of fundamental rights was to apply
in future.
If the American doctrine had been strictly imported into India, then the
constitutional amendments would have been declared invalid from the date of the
judgment. Therefore, one sees that the Supreme Court has diluted the application
of the doctrine based on the needs and the social scenario prevalent at that time.
Present position : Keshvananda bharathi
The Supreme Court in the landmark case of Keshvananda bharathi v. State of
Kerala held that the Parliament under the Indian Constitution is not supreme, in
that it cannot change the basic structure of the constitution. It also declared that in
certain circumstances, the amendment of fundamental rights would affect the basic
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Module-5) Practical Section ---> These are not part of the text of syllabus.
MODULE-5 QUESTIONS :
The Ahmedabad Municipal Corporation (AMC) framed rules for entry into Kids Zone at
Kankaria Lake. One of the Rules provides as under : (Apr-2012)
"No person will be allowed entry with his two wheeler and four wheeler vehicles".
"A" wants to enter the Kids Zone with his rickshaw having 3 wheels. According to him
entry of only two wheelers and four wheelers is prohibited and entry of his vehicle
being a three wheeler is not prohibited. According to AMC, the purpose of the Rule is
to prohibit entry of any vehicle so that kids can safely enjoy the Kids Zone. Can A
enter Kids Zone with his rickshaw Give reasons in support of your answer.
Assume that under the Customs and Excise Act, the Customs Duty is leviable on import
of gold in India. Gold is not defined under the Act. (Apr-2012)
"A" brings a designer golden spectacle frame with 22 carats gold in it from USA to
India. The Customs Department wants to levy the Customs Duty on the golden frame
as it contains gold.
According to "A", it is popularly known as "frame" and not "gold". Is "A" liable to pay
Customs Duty ? Would your answer be different if 'A' brought 22 carat golden chain to
India ? Give reasons in support of your answers.
GO TO CONTENTS.
MODULE-5 ANSWERS :
The Ahmedabad Municipal Corporation (AMC) framed rules for entry into Kids Zone at
Kankaria Lake. One of the Rules provides as under : (Apr-2012)
"No person will be allowed entry with his two wheeler and four wheeler vehicles".
"A" wants to enter the Kids Zone with his rickshaw having 3 wheels. According to him
entry of only two wheelers and four wheelers is prohibited and entry of his vehicle
being a three wheeler is not prohibited. According to AMC, the purpose of the Rule is
to prohibit entry of any vehicle so that kids can safely enjoy the Kids Zone. Can A
enter Kids Zone with his rickshaw Give reasons in support of your answer.
ANS :
Refer :
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GO TO MODULE-5 QUESTIONS.
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Assume that under the Customs and Excise Act, the Customs Duty is leviable on import
of gold in India. Gold is not defined under the Act. (Apr-2012)
"A" brings a designer golden spectacle frame with 22 carats gold in it from USA to
India. The Customs Department wants to levy the Customs Duty on the golden frame
as it contains gold.
According to "A", it is popularly known as "frame" and not "gold". Is "A" liable to pay
Customs Duty ? Would your answer be different if 'A' brought 22 carat golden chain to
India ? Give reasons in support of your answers.
ANS :
Refer :
GO TO MODULE-5 QUESTIONS.
GO TO CONTENTS.
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MODULE-6 QUESTIONS :
Discuss briefly rules propounded in Menaka Gandhi V/s. Union of India. (Apr-2012, Oct-
2012, Apr-2016)
Discuss briefly rules propounded in Ashvinikumar V/s. Arvind Bose. (Apr-2012)
Discuss briefly rules propounded in Rajnarayan V/s. Mrs. Indira Gandhi. (Apr-2012, Oct-
2012, Apr2013, Apr-2016)
Discuss briefly rules propounded in Golaknath V/s. State of Punjab. (Apr-2012, Oct-
2012, Apr-2016)
Discuss briefly rules propounded in Keshwanand Bharati V/s. State of Kerala. (Apr-
2012, Apr2013, Apr-2016)
Discuss briefly rules propounded in Madhavrao Scindia Vls. Union of India. (Apr-2012)
MODULE-6 ANSWERS :
For answers to above questions, please refer to the notes on subject 214K
Legal Principles through Case Study.
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Suggested Reading :
G.P. Singh, Principles of Statutory Interpretation, Wadhwa, Nagpur.
P. St. Langan (Ed), Maxwell on The Interpretation of Statutes, N.M. Tripathi, Bombay.
K. Shanmukham, N.S. Binclras Interpretation of Statutes, The Law Book Co. Allahabad.
V. Sarathi, Interpretation of Statutes, Eastern, Lucknow.
M.P. Jam, Constitutional Law of India, Wadhawa & Co M.P. Singh (Ed), V.N. Shukla's
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