MEANING OF STATUTE, CLICK HERE

COMMENCEMENT OF STATUTE

MEANING
 Commencement used with reference to an Act, means the day on which the Act comes
into force.
 Unless provided otherwise, generally a Central Act comes into operation on the day it
receives Presidential Assent or the Assent of Governor as the case may be.
 A provision in a Bill does not come into operation unless the enacting process is over and
the resultant Act containing that provision is brought into operation.

EXAMPLE
 If a Central Act is assented to by the President on 26 January at 10.30 a.m., it would be
construed to have come into operation on the midnight between 25th and 26th January.

FOUR KINDS OF COMMENCEMENT

Commencement of a Statute can be classified into the following four types:
1. On the date mentioned in the Official Gazette;
2. On the date in receives the Presidential assent/Governors assent, as the case may be;
3. Commencement in parts;
4. Postponement of Commencement.

POSTPONEMENT OF COMMENCEMENT
 The commencement of a Statute can be postponed to some specified future date; OR
 To such date as the appropriate government may by notification in the Official Gazette,
appoint.

COMMENCEMENT IN PARTS
 Provision is also made at times for appointment of different dates for coming into force
of different parts of the same Act.
 However care has to be taken to bring into force all related provision together for delay in
bringing into force a related provision may defeat the legislative intent during the
intervening period.

DELEGATION OF POWER OF COMMENCEMENT

1
  An Act cannot be said to commence or to be in force unless it is brought into operation
by legislative enactment or by the exercise of authority by a delegate empowered to bring
it into operation.

WRIT OF MANDAMUS TO ENFORCE COMMENCEMENT

 No Writ of Mandamus can be issued to the Government to enforce the Statute or the
provision because enforcement of the Stature lies within the domain and discretion of the
Government.
 However, if considerable time has elapsed since the passing of the Statute a writ can be
issued directing the Government to consider the question whether the statute or the
provision should be brought into force.

2
 OPERATION OF STATUTE

INTRODUCTION
 Statutes are either prospective or both prospective and retrospective from the point of its
applicability i.e. the period of legal effect of statutes, also referred to as commencement
of Statutes.
 All statutes in general have only prospective effect. It means applicability to future
transactions.
 But certain statutes have to be sometimes both prospective and retrospective.
 “Retrospective” means the statute would apply and affect past transaction also.

OPERATION OF STATUTES
a) Retrospective Operation.
b) Prospective Operation.
c) Operation controlled on considerations of Constitutionality.
d) Operation controlled on Consideration of Territorial Nexus.
e) Other relevant considerations relating to Operation.

RETROSPECTIVE OPERATION

Meaning
 Retrospective statute contemplates the past and gives effect to previous transactions.
 There must be words in a statute sufficient to show that the intention of the legislature is
to give the rule or the law the Retrospective effect.

Power to make Retrospective Laws

 The Union Parliament and the State Legislature have plenary powers of Legislation
within the fields assigned to them.
 Such power is subject to constitutional and judicial restrictions.
 However subject to such restrictions the Parliament or the State Legislature can legislate
prospectively or retrospectively.
 The power to make retrospective laws enables the legislature to obliterate an amending
Act completely and restore the law as it existed before the amending Act.
 Therefore, this power empowers the Legislature to cure the defect in the law and validate
prior executive and legislative acts.

Statutes dealing with Substantive Rights

 As a general rule, every statute that takes away or impairs vested rights acquired under
existing laws, or creates a new obligation or imposes a new duty, etc., must be presumed
to have prospective operation.

3
  Therefore, it is a cardinal principle of construction that every statute is prima facie
prospective unless it is expressly or by necessary implication made to have retrospective
operation.
 The presumption of prospectivity is articulated in the principle that a new law ought to
regulate what is to follow, not the past.
 Presumption of prospective operation operates unless it is shown to the contrary by
express provision in the Statute or is otherwise discernible by necessary implication.

Statutes dealing with Procedure

 In contrast to the statutes dealing with substantive rights statutes dealing with procedure
are presumed to be retrospective.
 However, this presumption will not operate if such a construction is textually
inadmissible.
 If a new Act affect matters of procedure only then prima facie it applies to all actions
pending as well as future.
 It is based on the principle that no person has a vested right in any course of procedure.
 Once the mode of procedure is altered, there is no other right than to proceed according
to the altered procedure.

Statements of the Rule Against Retrospectivity

 The classification of a statute as either substantive or procedural does not necessarily
determine whether it may have a retrospective operation.
 For example – a statute of limitation is generally regarded as procedural but if its
application to a past cause of action has the effect of reviving or extinguishing a right of
suit such an operation cannot be said to be procedural.

Language not always decisive

 In deciding the question of applicability of a particular statute to past events, the language
used is no doubt an important factor which is to be taken into account.
 But mere use of present tense or present perfect tense is decisive is not decisive of the
matter that the statute does not draw upon past events for its operation.

‘EX POST FACTO’ VIZ-A-VIZ RETROSPECTIVITY

 The expression ex post facto should not be confused with retrospective operation.
 An ex post facto law must necessarily be retrospective, but on the contrary every
retrospective law is not an ex post facto law.
 There may be the following four kinds of ex post facto laws:
a) Criminal Act – every law that makes action before the passing of law, and which
was innocent when done, criminal and punishes such action.
b) Aggravates a Crime – Every law that aggravates a crime, or makes it greater than
it was when committed.
c) Greater Punishment – Every law that changes the punishment and inflicts greater
punishment, then the law annexed to the crime, when committed.
d) Rules or Evidence – Every law that alters the legal rules or evidence and receives
less or differed testimony, that required at the time of commission of the offence
in order to convict the offender.

4
RETROSPECTIVE OPERATION QUA VARIOUS KINDS OF STATUTES

Statutes Regulating Succession

 The principle of retrospective operation does not apply to succession which had already
commenced or opened.
 Therefore, the material point of time for applicability of a law altering the order of
succession is the date when the succession opens thereafter.
 If laws relating to succession are made applicable in retrospective to successions already
opened, then it would have the effect divesting the estate from person in whom it had
vested prior to coming into force of the new statute.

Statutes Regulating Transfers & Contracts

 The Statutes prescribing formalities for effecting transfers are not applicable to transfers
made prior their enforcement.
 Similarly, statutes dispensing with formalities which were earlier necessary for making
transfers, will not the validate the transfers which were lacking in these formalities and
which were made prior to such statutes.
 A transfer made in contravention of a Statutory prohibition is invalid and is not validated
by repeal of the statute containing the prohibition.

Statutes of Limitation
 If a particular right of action had become barred under an earlier Limitation Act, the right
is not revived by a later Limitation Act even if it provides a larger period of limitation
than that provided by the earlier Act.
 Laws of limitation which apply to the suit, is the law in force at the date of the institution
of the suit irrespective of the date of accrual of the cause of action.

Fiscal Statutes
 Fiscal statutes are governed by the normal presumption that it is not retrospective.
 It is the cardinal principle of tax law that the law applied is that in force in the assessment
year, unless otherwise provided expressly or by necessary implication.

Penal Statues
 Penal Statutes which create offences or which have the effect of increasing penalties for
existing offences will only have prospective effect.
 Article 20 provides for the principle of ex post facto laws.
 It is based on the principle that the act which is legal at the time of doing it should not be
made unlawful by some new enactment.

Declaratory Statutes
 A declaratory statute means an Act to remove doubts existing as to common law or the
meaning of or effect of any statute.
 Such acts are usually held to be retrospectivity.
 Therefore, the presumption against retrospective operation is not applicable to
declaratory statutes.

Statutes regulating Appeals

5
 An appeal is the right to enter a superior court and invoking its aid and interpretation to
redress the error of the subordinate Court who has passed the impugned judgment.
 The right to appeal is a statutory right and not an inherent or natural right.
 It cannot be assumed to exits unless provided by the statute.
 However, if any change in the law relating to appeals, after the institution of original
proceedings which adversely touches the right to appeal is presumed NOT to be
retrospective.

6
OPERATION CONTROLLED ON CONSIDERATION OF CONSTITUTIONALITY
- Presumption against exceeding constitutional powers.

Legislative Powers – Seventh Schedule

 The Legislative Powers of the Parliament and the State Legislature are conferred by
Article 246 and distributed by LIST I, II & III in the seventh schedule of the Constitution.
 Residuary powers are vested in the Parliament by virtue of Article 248.
 Therefore, competence of the Legislature to make laws is governed by the legislative
powers conferred under the Constitution of India.

Presumption of Constitutionality
 A presumption qua the constitutionality of the Statute and that the Legislature does not
exceed its jurisdiction makes the statute operational and effective.
 The burden to prove that the Act is not operative and unconstitutional rests on the person
who challenges the vires of the Act.

Rule of Construction
 If in case two constructions or interpretation can be drawn out qua the constitutionality of
the Statute then in such case the Court ought to rely upon the one that is favour.
 Therefore, the Statute will remain operational and it would be presumed to not have
intended to exceed its jurisdiction.

Severability
 If the enactment cannot be saved by construing it consistent with its constitutionality, it
may be seen whether it can be partly saved.
 The operation of the part which is within the constitutional limits should be saved if the
test of severability is satisfied.

7
OPERATION CONTROLLED ON CONSIDERATIONS OF TERRITORIAL NEXUS
- Presumption against exceeding territorial powers

8
OTHER RELEVANT CONSIDERATION RELATING TO OPERATION

Presumption that Legislation is Territorial

 It is presumed that statutes are not intended to operate on events taking place or persons
outside the territories to which the statutes are expressed to apply.
 For example, in Income Tax Act a general principle is applicable that either the source
from which the income which is taxable is derived should be within the territorial limits
of the country imposing tax or the person whose income is to be taxed should be resident
there.

Operation as to Foreigners
 The Indian Statutes are ineffective/not operative against foreign property and foreigners
outside the jurisdiction.
 Therefore, the presumption that a statute is not intended to apply to person outside the
territories of the State enacting it, is particularly strong in the case of foreigners.

Operation as to crimes
 The Statutes governing crimes are operational only in the territory of the country where
such Act has been defined as an offence.
 It has been said that all crimes are local and the jurisdiction over the crime belongs to the
country where the crime is committed.
 A State exercise jurisdiction to punish all criminal acts against its laws done within its
territories by its subjects or aliens.

9
 REPEAL OF STATUTES

POWER TO REPEAL
 A power to make a law also carries with it the power to repeal a law on the topics on
which the Parliament or the State Legislature is empowered to make the laws at the first
place.
 Therefore, the power to repeal the law is co-extensive with the power to enact the same.
 It is based on the presumption that what Parliament has done, can undo the same.
 A power to repeal or amend will imply a power to amend or repeal by implication i.e., by
making inconsistent laws.

PROCEDURE OF REPEALING A STATUTE

 An act can be repealed by a later distinct and repealing enactment which is inconsistent
and irreconcilable therewith.
 A repeal can be brought by an express enactment to the effect.
 A repeal can also be implied if the two enactments are inconsistent and cannot stand
together.

EXPRESS REPEAL

Meaning
 The use any particular words is not necessary to bring about an express repeal.
 The words should show the intention to abrogate the Act or provision in question.
 A portion of the Act can also be repealed by way of an express enactment in its regard.
 As a matter of fact, there is no real distention between express repeal and amendment.

Substitution of a Provision
 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.

Invalidity of Repeal
 There can be two instances when the validity of the repeal is in question.
 The new provision introduced by way of repeal can be declared invalid on the ground of
want of competence to carry out such enactment.
 It can also be challenged on other grounds such as arbitrariness or violation of
fundamental rights, however in such case the repeal will be effective although the new
provision is declared invalid.

Partial repeal
 An Amending Act which limits the area of operation of an existing Act by modifying the
extent clause, results in partial repeal of the Act in respect of the area over which its
operation is excluded.

IMPLIED REPEAL

10
General Meaning
 As a general rule, there is a presumption against a repeal by implication.
 Meaning thereby that a repeal is only implied in rare circumstances, unless the legislature
makes it in express and clear terms.
 The reason behind the same is that when the Legislature enacts laws it has complete
knowledge of the existing laws on the same subject matter and therefore when it does not
provide a repealing provision, it gives out an intention not to repeal the existing
legislation.
 A repeal by implication is just as effective as by express words.

Burden of Proof to show Repeal by Implication

 The burden of proof to show that there has been a repeal by implication lies on the party
asserting the same.

When Repeal is Inferred

 A repeal can be inferred when the provisions of the later Act are so inconsistent with or
repugnant to the provisions of the earlier Act.
 The two Acts should be such that they cannot stand together.

When Repeal should not be Inferred

 But if the two Acts may be read together and some application may be made of the words
in the earlies Act, a repeal will not be inferred.

Test to determine Repugnancy/Inconsistency of Two Enactments

The following tests/conditions shall be applied for solving a question of implied repeal:
a) Whether there is direct conflict between the two provisions/Acts;
b) Whether the Legislature intended to lay down exhaustive code in respect of the Subject-
matter replacing the earlier law;
c) Whether the two laws occupy the same field.

Prior Particular Law and Later General Law

 A prior particular or special law is not readily held to be impliedly repealed by later
general enactment.
 A general statute applies to all persons within its jurisdiction and is distinguished from a
special law which it its operation is confined to a particular set of persons.
 Therefore, where it is doubtful whether the special statute was intended to be repealed by
the general statute the court should try to give effect to both the enactments.

Prior General Law and Later Particular Law

 A prior general Act may be affected by a subsequent particular or special Act.
 The special Act may have the effect of partially repealing the general Act, or curtailing its
operation or adding conditions to its operations for the particular cases.

11
  A general Act’s operation may be curtailed by a later Special Act even if the General Act
contains a non-obstante clause.

Law defining Offences and Penalties

 If a later statute again describes an offence created by an earlier statute and imposes a
different punishment, or varies the procedure, the earlier statute is repealed by
implication.
 If a subsequent Act is passed which deals with precisely the same offences and a different
punishment is imposed by the later Act, in such case the new Act shall be substituted for
the earlier Act.

12
CONSEQUENCES OF REPEAL

Effect of Repeal
 A statute after its repeal is completely obliterated as if it had been never enacted.
 The effect is to destroy all inchoate rights.
 It also negates all causes of action that have arisen under the repealed Statute.
 The law in force at the time of commencement of the repealed Statute is
 No fresh proceedings under the repealed Statute can be continued after the repeal.
 The repeal of law takes effect from the date of repeal and he law repealed remains in
operation for the period before its repeal.

Effect of Repeal on Delegated Legislation

 A delegated legislation also ceases to have any force one the main Act is repealed unless
it is clearly preserved.
 But if the delegated legislation is preserved, the repealed Act will continue to play a vital
role in its interpretation.

Proceeding Pending before the Repeal – Status of

 The status of the pending proceedings under the repealed Statute depend on the either the
savings contained in the repealing Act; OR
 Section 6 of the General Clauses Act may be referred to for the same.
 An Act repealing an earlier Act may provide for abatement of all proceedings pending
under the Act repealed except as otherwise provided in the repealing Act.

Section 6, General Clauses Act, 1897

Section 6 of the General Clauses Act provides for the following things that shall not be affected
carried out under the repealed Act:
 The repeal shall not revive anything not in force or existing at the time at which the
repeal takes effect.
 It shall not affect the previous operations of any enactment so repealed or anything duly
done or suffered thereunder.
 It shall not affect any right, privilege, obligation or liability acquired, accrued or incurred
under any enactment so repealed.
 It shall not affect any penalty, forfeit use or punishment incurred in respect or any offence
committed against any enactment so repealed.
 It shall not affect any investigations, legal proceedings or remedy in respect of any such
right, privilege, obligation, liability, punishment or forfeiture thereunder.

13
REVIVAL OF STATUTE

Meaning
 When a particular ‘First Statute’ is repealed by a ‘Repealing Act(Statute)’ and in course
of time the ‘Repealing Act’ is itself repealed, then in such case the repeal of the
‘Repealing Act’ would automatically bring back or revive the ‘First Statute’
 This rule is subject to an exception that there was no intention that the ‘First Statute’ shall
remain repealed.
 Therefore once a repealing statute is itself repealed that does not mean the revival of the
repealed statute unless the language of the repealing statute so provides expressly.

Section 7, General Clauses Act, 1897

 In India revival of Statutes is governed by Section 7 of General Clauses Act, 1897.
 It is necessary to state the purpose of reviving (either wholly or partially) the enactment
repealed (either wholly or partially).
 It applies to the Central Acts.
 The repeal shall not revive anything that was not in force or existing at the time at which
the repeal takes effect.

14
 FOR AMENDING, CODIFYING, CONSOLIDATING,
CLICK HERE

PRIMARY OR LITERAL RULE OF INTERPRETATION

CONCEPT OF THE RULE

 The words are to be given their ordinary and natural meaning.
 If such meaning is clear and unambiguous, effect should be given to a provision of a
statute whatever may be the consequences.
 The basis of this principle is to know what the Legislature intended, such intention is
known through interpretation according to the rules of grammar.
 This is also known as safest rule as intention of law maker is deduced from language used
by such law maker.

PRINICIPLES FOLLOWED BY JUDGES

 LITERALEGIS(Go by words of law)
 ITASRIPTUMEST(As the words are)

NATURAL AND GRAMMATICAL MEANING

 The words of a Statute shall be first understood in their natural, ordinary or popular
sense.
 The phrases and sentences are construed according to their grammatical meaning.
 The above said rule is subject to an exception i.e., if the literal construction leads to some
absurdity or if there is something which suggests an opposite meaning.
 Therefore, as a general rule when the words of a statute have a natural meaning, one
cannot depart from the same.

EXPLANATION OF THE RULE

 The description/epithets used in the rule such as ‘natural’, ‘ordinary’, ‘literal’,
‘grammatical’ and ‘popular’ are used interchangeably to convey the same idea.
 The words/phrases shall be interpreted with regard to the meaning which they have in
relation to the subject matter with reference to which and the context in which they have
been used in the statute.
 As per this rule, the first question that is to be asked while interpreting the Statute is that
what is the natural or ordinary meaning of the word or phrase in its context in the statute.

15
SECONDARY MEANING OF THE WORD/PHRASE
 A word or phrase apart from having a natural, ordinary or popular meaning may have a
secondary meaning as well.
 Such secondary meaning can be a technical or a scientific meaning.
 However, if the natural, ordinary or popular meaning of the word is accepted then the
secondary meaning loses its significance.

EXACT MEANING PREFERRED TO LOOSE MEANING

 There is a presumption that words used in an Act of Parliament are used correctly and
exactly and not loosely and inexactly.
 For example, in ascribing the word ‘contagious’ its exact meaning i.e., ‘touching’ in
preference to its loose meaning i.e., ‘neighboring’ it was held that the words are used in
the Act of Parliament exactly & correctly rather than loosely and inexactly.

TECHNICAL WORDS TO BE USED IN TECHNICAL SENSE

A. SPECIAL MEANING IN TRADE, BUSINESS, ETC.

 In legislations relating to a particular trade, business, profession, art or science, words
having a special meaning in that context are understood in that sense.
 Such a special meaning is called the technical meaning to distinguish it from the more
common meaning that the word may have.
 It has to be proved that such word was used in a special technical meaning before the
passing of the Statute and accepted by those conversant with the industry.
 Words with which everybody is conversant and are used in a particular trade, business or
transaction can be construed have such a particular meaning.
 The logic behind this kind of interpretation is that the person who are concerned with it
and the sense in which they understand it constitutes the definitive index of legislative
intention.
 In such cases the true test is the test of commercial identity and not the functional test.
 For example, it has to be ascertained as to how the particular goods are referred to in the
market by those who deal with them, be it for the purpose of selling, purchasing or
otherwise.
 However, what is important is that the word must have been understood as such by all
those conversant with the trade, business or industry concerned i.e., by the class as a
whole and not by a portion only.

B. LEGAL SENSE OF WORDS

 When the words acquire a technical meaning because of their consistent use by the
Legislature in a particular sense because of their authoritative construction by superior

16
 courts, they are understood in that sense when used in a similar context in subsequent
legislation.
 When a word has acquired a special connotation in law, dictionaries cease to be helpful in
interpreting that word.
 In construing the Acts of Parliament, it a general rule that words must be taken in their
legal sense unless the contrary intention appears.

ADVANTAGES & DISADVANTAGES OF THE LITERAL RULE OF

INTERPRETATION

ADVANTAGES
 It forces Judges to carry forward Parliaments intention while interpreting the law.
 It also provides certainty in Law.
 No scope for the judges own opinions or prejudices to interfere.

 Respects parliamentary supremacy and upholds separation of power.

 Encourages drafting precision, promotes certainty and reduces litigation.

DISADVANTAGES
 It is based on false assumption that a word will always have plain meaning.
 The Literal Rule can create loop holes in law.
 In certain cases, Literal Rule may also lead to injustice.
 It may lead to undermining public confidence in law.
 Disagreement over the Literal meaning of Statutes.

17
CASE LAWS

Duport Steel v Sirs (1980)

It defined the Literal Rule of Interpretation and stated as follows “Where the meaning of the
statutory words is plain and unambiguous it is not then for the judges to invent fancied
ambiguities as an excuse for failing to give effect to it’s plain meaning because they consider the
consequences for doing so would be inexpedient, or even unjust or immoral.”

Fisher v Bell case (1960)

FACTS - Under the offensive weapons act of 1959, it is an offence to offer certain offensive
weapons for sale. Bristol shopkeeper, James Bell displayed a flick knife in his shop window.
HELD - When brought to trial it was concluded that Bell could not be convicted given the literal
meaning of the statute. The law of contract states that having an item in a window is not an
intention of sale but is an invitation to treat. Given the literal meaning of this statute, Bell could
not be convicted.

R V Harris case (1836)

FACTS - The defendant bit the nose off the victim. The statute stated the offence was ‘to stab or
wound’.
HELD - Under the Literal Rule, biting is not stabbing, cutting or wounding (implying the use of
an instrument). The defendant was proven not guilty.

18
 MISCHIEF RULE OF INTERPRETATION

FOR DETAILED NOTES, CLICK HERE>

Introduction
General Principles
Primary Principles
 Literal Rule
 Mischief Rule
 Golden Rule
Rule of Harmonious Construction
Secondary Principles
 Noscitur a Sociss
 Ejusdem Generis
 ReddendoSigulaSingulis
Origin
 Hydon’s case in 1854
 Four points to be considered
 What was the law before making the Act.
 What was the mischief and defect which the law did not provide for.
 What remedy the Parliament has resolved and appointed to cure.
 The true reason for remedy.
Historical Importance
 Applied in English Courts
 Other rules applied in English Courts viz. Literal rule and golden rule.
Concept of the Rule
 To determine mischief and defect.
 What part of law is lacking, thus leaving loopholes and needs to be rectified by the Legislature
by passing an Act.
 Suppress the mischief and advance the remedy.
 To find out the loophole in the law.
 Reduce the effect of mischief.
 Court will look out for the defect and apply mischief rule and interpret accordingly and give their
decision.
Impact of the Rule
 Gives the judge more discretion.
 To remove the provision which has inherent mischief and accordingly interpret the statute.
 Takes supremacy of the Parliament and takes away decision making from it.
 Judges interpret the law made by the Parliament.

19
 In case of mischief rule the judges completely keep aside the provision hit by mischief and give
their decisions therefore it undermines the law as it has been made by the Parliament.
 Democratic powers are undermined because the judge is the sole person taking the decision.
Advantages
 Prevents misuse of loopholes in laws and rules.
 Unintentional loopholes and weak ends in the laws/rules.
 Law Commissions have regarded this rule as more satisfactory than other rules.
 The Judges have been conferred wide powers under this rule.
 It avoids unjust and absurd results in sentencing merely because of a particular provision in law
or rule.
Disadvantages
 It seems to be out of date as it has been in use since 16th Century.
 The defects in old laws have been already been rectified by the Courts by applying this rule.
 Therefore, most of the defects in all the old laws would have been removed by now by the
Judges/Courts by applying this rule.
 Gives too much power to the Judiciary.
 This rule makes the law uncertain.
 Uncertainty visits the rule because of the fact that in Parliament law making process involves
elected representatives of the public whereas in the present rule the law making is entirely in the
hands of Judges.

20
GOLDEN RULE OF INTERPRETATION

ORIGIN
 The term “Golden Rule” seems to have originated in case of Mattison v. Hart in 1854.
 It is also known as British Rule or Modifying Method.

DEFINITION
 The Golden Rule was defined in the case of Grey v Pearson 1857) as: “The grammatical
and ordinary sense of the words is to be adhered to unless that would lead to some
absurdity or some repugnance or inconsistency with the rest of the instrument in which
case the grammatical and ordinary sense of the words may be modified so as to avoid the
absurdity and inconsistency, but no farther.”

MEANING
 It is the elaboration and extension of Literal Rule.
 It is a compromise between the Literal Rule and the Mischief Rule.
 Like the Literal Rule it gives the words of a Statute their plain, ordinary meaning.
However, when this may lead to irrational result that is unlikely to be the legislative
intent, the Judge can depart from the meaning.

HISTORICAL IMPORTANCE
 The Golden Rule is one of the three rules of Statutory Interpretation traditionally applied
by English Courts.
 The other two are Literal and Mischief Rule.

APPLICATION
 If while applying Grammatical Interpretation absurdity or inconsistency arises then the
Golden Rule is applied.
 Otherwise the Golden Rule has no application.
 Application in Narrower Sense – It is applied most frequently in a narrow sense where
there is some ambiguity or absurdity in the words themselves.
 Application in Wider Sense – To avoid a result that is obnoxious to principles of public
policy, even where words have only one meaning.
 For example – A son murdered his mother and committed suicide. The Courts were
required to rule on who then inherited the estate, the mother’s family or the son’s
descendants. There was never a question of the son profiting from his crime, but as the
outcome would have been binding on lower courts in the future, the Court found in
favour of the mother’s family.

CONCEPT
21
  The Golden Rule allows a Judge to depart from a words normal meaning in order to
avoid an absurdity from results.
 Court will depart to the extent it is sufficient to remove the absurdity from law under
consideration.

ADVANTAGES & DISADVANTAGES

ADVANTAGES
 It respects the words of Parliament except in limited situations, the Golden Rule provides
for an escape route where there is a problem with using the literal meaning.
 It allows the Judge to choose the more sensible meaning where there is more than one
meaning of the words in the Act or Statute.
 Errors in drafting can be corrected immediately.
 Decisions made are more in line with the Parliament’s intentions.
 It assists is closing loopholes in the letter of law.

DISADVANTAGES
 There are no guidelines as to when it can be used.
 What seems to be absurd to one judge may not be the case with another. Therefore, it is
very subjective.
 Thus, the outcome is decided on basis of Judge’s thinking than the Law.
 It is very limited in use, so it is only used on rare occasions.
 It is not always to predict when the Courts will use Golden Rule, making it hard for
lawyers and people who are advising their clients.
 Infringes separation of powers amongst the three organs.
 Judges technically change the law by changing the meaning of words in the Statute.
 Judges have no power to intervene for pure injustice where there is no absurdity.

CASE LAWS

Lee v. Knapp
LAW – Sec.77 of Road Traffic Act 1960 – A driver causing an accident shall stop after the
accident.
FACTS – A driver stopped for a moment after an accident and then moved away.
HELD – Applying the Golden Rule, the Court said that requirement of the Section had not been
followed by driver as he had not stopped for a reasonable period requiring interested persons to
make necessary inquiries from him about the cause of accident.

22
R v. Allen (1872)
FACTS – The defendant was charges with an offence of bigamy u/s. 57 of the Offence Against
Person Act, 1861.
HELD – The Court applied the Golden Rule and held that the word ‘marriage’ should be
interpreted as ‘to go through a marriage ceremony’ The defendant’s conviction was upheld.

Adler v. George (1964)

FACTS – Adler was arrested for obstructing forces whilst in a Prohibited area. After his arrest.
Section 3 of the Official Secrets Act provided that it was an offence to obstruct HM forces in the
‘vicinity’ of prohibited area.
HELD – As per the Literal Rule, Adler was not in the vicinity of the area, he was in the area and
so was not infringing the terms of the Act. The Golden Rule was applied to the extent the
meaning of ‘vicinity’ and avoid the possible absurd outcome.

London & North Eastern Railway v. Berriman (1946)

HELD – A widow could not get compensation because the wording of the Statute didn’t allow for
this circumstance. Therefore the Golden Rule could not be of any help as there was no absurdity
in the Statute although injustice was being done to the widow.

23
 BENEFICIAL RULE OF INTERPRETATION

MEANING – BENEFICIAL CONSTRUCTION

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

SCOPE & BASIS

 Beneficial Rule of Interpretation applies in cases where the language used by the
Legislature fails to achieve the object of a Statute, a more extended meaning could be
given to it to achieve that object if the language is fairly susceptible to it.
 Beneficent Statutes have sometimes been called by the name of social welfare
legislations.
 If the natural meaning of the words is not able to achieve the object of the Statute,
extended meaning may be given to them if they are capable of receiving that meaning.
 If in legislation, the general object of which is to benefit a particular class of persons, any
provision is ambiguous so that it is capable of two meanings, one of which would
preserve the benefit and another which would take it away, the meaning which preserves
it should be adopted.

LIMITATION ON ITS APPLICATION

 The liberal construction must flow from the language used and this rule does not permit
placing of an unnatural interpretation on the words contained in the enactment.
 It does not 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 has been
enacted.
 Where the courts find that by the application of the rule of beneficial construction, it
would be re-legislating a provision of statute either by substituting, adding or altering any
provision of the act, it should not apply the said rule of construction.
 Where any word in a statute confers to a single meaning only. Then the courts should
refrain from applying the rule of beneficial construction to the statute.
 When there is no ambiguity in a provision of a statute so construed. If the provision is
plain, unambiguous and does not give rise to any doubt, the rule of beneficial
construction cannot be applied.

EFFECT OF SUBSEQUENT LAW

 A subsequent law cannot be interpreted to defeat the effect of a beneficial legislation
except by a clear provision.

DUTY OF THE COURT

 Although beneficial legislation does receive liberal interpretation, the courts try to remain
within the scheme and not extend the benefit to those not covered by the scheme. 

24
BENEFICIAL CONSTRUCTION IN SOCIO-ECONOMIC LEGISLATIONS
 Beneficial Construction of statutes have enormously played an important role in the
development.
 Beneficial interpretation of socio – economic legislations and have always encouraged
the Indian legislators to make more laws in favour of the backward class of people in
India.
 Socio – Economic legislation which is aimed a social or economic policy changes in such
Statutes the interpretation should not be narrow.
 The Supreme Court has held that the welfare legislations shall be interpreted in the third
world perspective favouring the weak and poor class.
 Even in case of labour legislations it has been held that the Court should not stick to the
grammatical constructions but also have regard to the purpose and protective intendment
of the Legislation.
 Interpretation of labour legislations should be done by the Courts with more concern with
the colour, the context and the content of the Statute rather than its literal import.

BENEFICIAL CONSTRUCTION – A TENDENCY RATHER THAN A RULE

 Maxwell has stated that the Beneficial Construction is a tendency and not a rule.
 This principle is based on the human tendency to be fair, accommodating and just.
 Instead of restricting people from getting benefit of the Statute, Court tends to include as
many classes as it can while remaining faithful to the wordings of the Statute.

25
HARMONIOUS RULE OF INTERPRETATION

MEANING
 When two or more provisions of the same Statute are repugnant, the Court will try to
construe provisions in such a manner, if possible as to give effect to both by harmonizing
them with each other.
 When there are, in an enactment two provisions which cannot be reconciled with each
other, they should be so interpreted, that if possible, effect should be given to both.
 A construction which makes one portion of the enactment a dead letter should be avoided
since harmonization is not equivalent to destruction.

SCOPE & BASIS

 The basis of the principle of harmonious construction probably is that the legislature must
not have intended to contradict itself.
 It follows a very simple rule that every statute has a purpose and intent as per law and
should be read as a whole.
 This principle is mostly used in number of cases dealing with the interpretation of the
Constitution.
 It is based on the assumption that when the Legislature gives something by one hand it
does not take away the same by other.
 The Legislature cannot be presumed to contradict itself by enacting apparently two
conflicting provisions in the same Act.

APPLICATION
 When there is conflict between two or more statutes or two or more parts of the Statute
then the rule of harmonious construction needs to be applied.
 It follows the basic premises that every statute has a purpose and intent as per law and
should be read as a whole.

DUTY/ROLE OF THE COURT

 To avoid a head on clash between two sections of the same act.
 To construe provisions which appear to be conflicting in a way so that they harmonize.
 The Court may do so by regarding two or more apparently conflicting provisions as
dealing with separate situations; Or
 By holding that one provision merely provides for an exception of the general rule
contained in the other.
 Harmonious Construction should be applied to statutory rules and courts should avoid
absurd or unintended results.
 In case it is impossible to harmonize both the provisions, the Courts decision regarding
the provision shall prevail.
26
SUPREME COURT’S PRINCIPLES
The Supreme Court has laid down five principles on the rule of Harmonious Construction in the
landmark case ofCIT v Hindustan Bulk Carriers:
1. COURT MUST AVOID HEAD ON CLASH - The courts must avoid a head on clash of
seemingly contradicting provisions and they must construe the contradictory provisions
so as to harmonize them.
2. ONE SECTION SHALL NOT MAKE OTHER USELESS - The provision of one section cannot be
used to defeat the provision contained in another unless the court, despite all its effort, is
unable to find a way to reconcile their differences.
3. DIFFERENCE SHOULD BE RECONCILED - When it is impossible to completely reconcile the
differences in contradictory provisions, the courts must interpret them in such as way so
that effect is given to both the provisions as much as possible.
4. Courts must also keep in mind that interpretation that reduces one provision to a useless
number or dead is not harmonious construction.
5. To harmonize is not to destroy any statutory provision or to render it fruitless.

NOTE: Restrictive Rule of Interpretation nahihaiisme.

27