LEGAL METHOD AND INTRODUCTION

TO LEGAL SYSTEM

MODULE 3
FUNDAMENTALS OF STATUTORY
INTERPRETATION

MR. ARINDAM NERAL

ASSISTANT PROFESSOR OF LAW
TOPICS:

• Stages in preparation of Statutes

• Parts of a statute and their use in understanding and interpretating
statutes
• Classification of Statutes
• General Clauses Act and its importance
• Importance of Rules, Maxim and presumptions in Interpretation
• Rules of Interpretation
• Aid to Interpretation of Statues : Internal and External
 STATUTE
• Statute is defined as law which is passed by the Parliament and the
various state legislatures. This statute is the basis for statutory law.

• The legislature passes statutes which are later put into the central
code of laws or pertinent state code of laws.

• Statute law also includes local ordinances, which is a statute

passed by a government to guard areas not covered by central or
state laws.

• Statutes are enacted in response to a perceived need to clarify the

functioning of government, improve civil order and to codify existing
laws.
 STAGES OF PREPARATION OF STATUTE
Legislative proposals are brought before either house of
the Parliament of India in the form of a bill. A bill is the draft
of a legislative proposal, which, when passed by both houses
of Parliament and assented to by the President, becomes
an Act of Parliament.

The Preparation of Statutes can be broadly classified into Five

Stages:

1) First Reading ->

2) Second Reading ->
3) Third Reading ->
4) If Accepted then moved to other house ->
5) Assent of the President.
CLASSIFICATION OF BILLS:
• Bills may also be classified as public bills and private bills on the
basis of who introduces them:

1. PUBLIC BILLS: Public Bill is presented in parliament by a

minister only. A public bill is one referring to a matter applying to the
public in general.

2. PRIVATE BILLS: Private bills can be presented by any member of

parliament. A private bill relates to a particular person or corporation
or institution.

• The bills introduced in the parliament are categorized in Four

categories i.e. Ordinary bills (Article 107), Money bills (Art. 110),
Financial Bills (Art. 117), and Constitution amendment bills (Art.
368).
 STAGES:

1. FIRST READING:
• A minister or a member introduces the bill in either house of the
Parliament. He asks for leave before introducing the bill. He
reads the title and objective of the bill.

• After the introduction, the bill is published in the Gazette of India.

• No discussion on the bill takes place in this stage

• If the bill is published in the Indian Gazette before its

introduction, the minister/member does not have to ask for
leave.
2. SECOND READING:
• The second reading consists of consideration of the bill which
occurs in two stages.

First stage: The first stage consists of general discussion on the bill
as a whole when the principle underlying the bill is discussed. At this
stage it is open to the house to refer the bill to a select committee of
the house or a joint committee of the two houses or to circulate it for
the purpose of eliciting opinion thereon or to straight away take it
into consideration.

Second Stage: The second stage of the second reading consists of

clause-by-clause consideration of the bill as introduced or as reported
by select or joint committee. Discussion takes place on each clause
of the bill and amendments to clauses can be moved at this stage
3. THIRD READING:
• One of the two actions take place:
1. Acceptance of the Bill (If the majority of members present and
voting accept the bill, the bill is regarded as passed by the House)

2. Rejection of the Bill

• Note:
1. No amendments to the bill are allowed.

2. A bill is deemed to have been passed by the Parliament only

when both the Houses have agreed to it, either with or without
amendments.
4. BILL IN THE OTHER HOUSE:
• After the bill is passed by one house of Parliament, it is sent to the
other house for concurrence with a message to that effect, and
there also it goes through the stages described above, except the
introduction stage.

• Then the second house can take one of the four actions:
1. It may pass the bill as sent by the first house (i.e. without
amendments)
2. It may pass the bill with amendments and return it to the first
House for reconsideration
3. It may reject the bill altogether
4. It may not take any action and thus keep the bill pending
5. ASSENT OF THE PRESIDENT:
The President can take one of the three actions:

1. May give his assent to the bill (The Bill becomes an Act);

2. May withhold his assent to the bill (The bill ends and does not
become an act);

3. May return the bill for reconsideration (The houses can/cannot

make amendments and send it back to the President after which
he has to give assent)
 TOOLS FOR STATUTORY
INTERPRETATION
• Although some statutes appear simple and straightforward at the
first glance, but one may find upon further examination, that the
terms of the statute are ambiguous or do not directly address the
legal issue.

Hence, there are the following tools for the proper understanding or
interpretation of statutes:

1. Statutory Definitions : Many statutes contain a “definitions”

section that sets forth and defines the key terms used in the statute.
You might find these definitions either in the section of the statute
you are analyzing or in one of the first sections of the entire act.
2. Preamble or Purpose Clauses : Many statutes begin with a
preamble or purpose clause, which can be helpful in discerning the
intent of the legislature with respect to ambiguous terms of the
statute. Thus, when choosing between multiple plausible
interpretations, you might refer to the statute’s purpose in deciding
which interpretation is superior.

3. Legislative History : Legislative history can provide useful

guidance for determining the legislature’s intent, and thus the
meaning of ambiguous statutory language.
 CLASSIFICATION OF STATUES
A statute may generally be classified with reference to its duration,
nature, and object.

 Classification with reference to duration

• Temporary Statute: A temporary Statute is one where its period
of operation or validity has been fixed by the statute itself. A statute
is temporary when its duration is only for a specified time and it
expires on the expiry of the specified time unless it is repealed
earlier.

• Permanent Statute: A permanent Statute is one where no such

period (like a temporary statute) has been mentioned but this does
not make the statute unchangeable; such a state it may be
amended or replaced by another Act.

In simple words, it is perpetual when no time is fixed for its duration

 Classification with reference to Nature of operation
• Prospective Statutes : A Statute which operates upon act and
transactions which have not occurred when the statutes take effect,
that is which regulates the future is prospective Statutes.

• Retrospective Statute : Every Statute takes away or impairs vested

rights acquired under the existing laws or creates new obligations into
a new duty or attaches new disability in respect of transactions or
considerations already passed are deemed retrospective or retroactive
statutes.

• Directory Statute : Directory statutes merely direct or permits

anything to be done without compelling its performance. It is generally
affirmative in its terms recommends a certain act or omissions, but it
does not impose the penalty on non-observance of its provisions.

• Mandatory Statute : Mandatory Statutes is one which compels

performance of certain things or compels that a certain thing must be
done in a certain manner or form.
 Classification with reference to object
• Codifying Statute :A Codifying Statute is one which Codifies the
law. The code contains the pre-existing provision in statutes on the
subject as well as the common law on it.

• Consolidating Statute : Consolidating statute is one which

consolidates the law on a particular subject at one place; it collects
all statutory enactments on a specific subject and gives them the
shape of one statute with minor amendments if necessary.

• Remedial Statute : The remedial statute is one whereby new

favor or a new remedy is conferred.

• Enabling Statute : Enabling statutes are statutes which enlarges

the common law where it is too strict or narrow. It is a statute which
makes it lawful to do something which would not otherwise be lawful.
• Disabling Statutes : This type of statutes restricts or cut down a
right conferred by the common law. An Act restraining a common
law right is a disabling Act.

• Penal Statute : A Penal statute is one which punishes certain acts

or wrong. Examples - Indian Penal Code1860, Arms Act 1959,
Prevention of Food Adulteration Act, 1954 etc.

• Taxing Statute : A taxing statute is one which imposes taxes on

income or certain other kinds of transactions. It may be in the form
of income tax, wealth tax, gift tax, sales tax etc.

• Repealing Statute : A Repealing statute is one which repeals an

earlier statute.
 GENERAL CLAUSES ACT, 1897

• The General Clauses Act, 1897 is an act which lays down the
essential principles on how the law should be interpreted.

• It is also referred to as the interpretation act.

• The clause provides legal terms, methodologies, and expressions

that help to get rid of repetition and also provides a typical set of
principles which is employed in legislation.

• It provides rules on interpretation and expression to define things

more clearly.
 OBJECTIVES
•To shorten the language of central acts.

• To provide, as far as possible, for uniformity of expression for

central acts by giving definition of series of terms in common use .

 PURPOSE
• The purpose of general clauses act is to place in one single
statute different provisions as regards interpretation of words and
legal principle which would otherwise have to be specified
separately in different Acts and regulation.

• The act applies to all Central legislations and also to rules and
regulations made under a Central Act. If a central act is extended
to any territory, the General Clauses Act would deemed to be
applicable in that territory and would apply in the construction of
that Central Act.
 TERMS DEFINED UNDER THE ACT

• Act
• Immovable property
• Government
• Imprisonment
• Indian Law
• Oath
• Official Gazette
• Person
• Registered
• Good Faith
• Document
 APPLICABILITY INTO THE CONSTITUTION
• Article 367(1) of the Constitution states that the General Clauses
Act, 1897 (subject to the adaptations and modification made under
Article 372) shall apply for the interpretation of the Constitution.

• Thus, the General Clause Act applies for the interpretation of the
constitution. The General Clauses Act defines various terms in section
3. These definitions will apply for the interpretation when these words
are employed within the Constitution.
 RULES OF INTERPRETATION

• There are certain general principles of interpretation which have

been applied by Courts from time to time.

• Over time, various methods of statutory construction have fallen in

and out of favour. Some of the better known rules of interpretation
also referred to as the Primary Rules of Interpretation, they are as
follows:

1. Literal Rule of Interpretation

2. Golden Rule of Interpretation
3. Mischief Rule of Interpretation
 1. LITERAL RULE OF INTERPRETATION

• In construing Statutes the cardinal rule is to construe its provisions

literally and grammatically giving the words their ordinary and natural
meaning.

• This rule is also known as the Plain meaning rule.

• It should be taken into note that the rule can be applied only when the
meanings of the words are clear i.e. words should be simple so that the
language is plain and only one meaning can be derived out of the
statute.

• To avoid ambiguity, legislatures often include "definitions" section

within a statute, which explicitly define the most important terms used
in that statute.

• According to Lord Simon, The golden rule is that the words of a

• If the words are clear, they must be applied, even though the
intention of the legislator may have been different or the result is
harsh or undesirable. The literal rule is what the law says instead of
what the law intends.

• This is the oldest of the rules of construction and is still used

today, primarily because judges may not legislate. As there is
always the danger that a particular interpretation may be the
equivalent of making law, some judges prefer to adhere to the law's
literal wording.
 2. GOLDEN RULE OF
INTERPRETATION
• It is the modification of the literal rule of interpretation.

• The golden rule tries to avoid anomalous and absurd

consequences from arising from literal interpretation.

• This rule of interpretation aims at giving effect to the spirit of the

law as the mere mechanical and grammatical meaning may not be
sufficient.

• Like the plain meaning rule, it gives the words of a statute their
plain, ordinary meaning. However, when this may lead to an
irrational result that is unlikely to be the legislature's intention, the
judge can depart from this meaning.
• In the case of homographs, where a word can have more than
one meaning, the judge can choose the preferred meaning; if the
word only has one meaning, but applying this would lead to a bad
decision, the judge can apply a different meaning.

• This rule of interpretation is used on the basis of discretion of the

judges on giving due consideration to the consequences of the
judgment given by them.

• An example of the same is S. 125 of the CrPC which deals with

maintenance given to women. The court while interpreting the
term ‘wife’ included those women who have entered into bigamy
and divorced women. The court has stated that even though a
woman may have relinquished her rights on divorce, she may
claim maintenance u/s 125 as she will she be regarded as a ‘wife’
even 10 years after such divorce.
 3. MISCHIEF RULE OF
INTERPRETATION
• The mischief rule is a rule of statutory interpretation that attempts
to determine the legislator's intention.

• The mischief rule is a certain rule that judges can apply in

statutory interpretation in order to discover Parliament's intention. It
essentially asks the question: By creating an Act of Parliament what
was the "mischief" that the previous law did not cover?

• 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. It can be argued that this undermines
Parliament's supremacy as it takes lawmaking decisions away from
the legislature.
• The rule was established in Heydon's Case where it was stated
that there were four points to be taken into consideration when
interpreting a statute:

1. What was the common law before the making of the act?
2. What was the "mischief and defect" for which the common
law did not provide?
3. What remedy the parliament has resolved and appointed to
cure the disease of the commonwealth?
4. What is the true reason of the remedy?
 MAXIMS FOR STATUTORY INTERPRETATION

1. Noscitur a sociis - Sometimes few words or phrases may have

two or more meanings. Choosing of correct meaning is important
for proper interpretation. When such kinds of difficulties arise, the
words or the phrase’s meaning is determined by its surrounding
words or accompanying words.

2. Ejusdem Gemeris - The literal meaning of the maxim is that,

“of the same kind”. The maxim takes its literal meaning to be
used in the construction. The words used in the statutes are to be
read carefully. Sometimes the provision or the law may have
intended specific meaning and the word used in the statutes may
have a wide meaning in common usage. In such cases, only the
specific meaning is to be taken and not the widened meaning.
3. Ut Res Magis Valeat Qum Pereat - As seen before in the maxim
of ejusdem generis, sometimes the provisions in the statute may
give two different complete construction meanings. In these cases,
the meaning which fails the intent of the statute or contradicts
other provisions of the legislature should be avoided and the
meaning which coincides with other provisions of the statute
should be taken into consideration.

4. Contemporanea Exposito est Optima et Fortissinia in Lege

- It is often mentioned that the best description of a legislature or
any verbal construction is that from the current authority
description. It is apparent that the language of legislation should
be taken in the manner in which it was meant when it was drafted.

5. Expressio unius est exclusio alterius - The maxim is used in

many legal interpretations which plainly explains that the “explicit
mention of one thing is the exclusion of another”.
 PRESUMPTIONS AS TO STATUTORY INTERPRETATION

1. If language is plain, consequences to be disregarded;

2. Words to be given their natural meaning;
3. Not to fill up lacuna in the statute;
4. Not to modify language of the statute.
 AIDS TO INTERPRETATION OF STATUTES

 Internal aids to interpretation of Statutes:

• Title
• Preamble
• Heading and title of a chapter
• Definition or interpretation clauses
• Illustration
• Explanation
• Proviso
• Schedules
 External aids to interpretation of Statues:
• Dictionaries
• Text Books
• Statement of object and reasons
• Parliamentary History
• Foreign Laws and Decisions