General Clauses (CA Inter 1 Law) Complete Chapter 31 PG

By: - CA.
Sumit Goyal The General Clauses Act, 1897
The General Clauses Act, 1897
Object / Purpose of the Act

1. In the Absence of definition of a Particulars word in any Central Act or Regulation, the Definition given
in the General Clauses Act, 1897 (enacted on 11 March, 1897) shall apply. Thus, while enacting any Central
Act or Regulation, the Legislature need Not define a term if such term is to be given the same meaning as
been given in the General Clauses Act, 1897. This helps in shortening the language of the Central Acts
and Regulations.
The General Clauses Act, 1897 (Act) was enacted on 11 th March, 1897 to Consolidate and extend the
General Clauses Act, 1868 and 1887.
2. The Provisions contained in the General Clauses Act, 1897 Apply uniformity to all the Central Acts
and Regulations. Thus, the General Clauses Act, 1897 seeks to ensure that a Word is given the same
meaning (viz. uniform meaning) in All the Central Acts and Regulations. Also, this helps in Avoiding
Repetition of Words in the Central Acts and Regulations.
Example 1, Suppose Distance is mentioned in any Act but it is Not specified that how to measure it, aerially
or horizontally, the General Clauses Act suggests to take it horizontally.
Example 2, Suppose Rate of Custom Duty is Specified on certain Article is Rs. 1,000 per 100 Kg, if u
import 170 kg then General Clauses Act suggests to take it proportionately i.e. Rs. 1,700.
Example 3, Suppose in any Act, it is specified that someone who Contravenes of the respective Act, he is to
be punished with Certain amount. The General Clauses Act Clear that he includes She.
Example 4, In some Acts, word Government is mentioned then General Clauses Act says it should be taken
as State Govt. and Central Govt. both.
3. The legal Principles as Contained in the General Clauses Act, 1897 help in Resolving any Conflict
which may arise between 2 or more Central Acts or Regulations.
* Much more, however, can be said about the importance of an Interpretation Act (It is Interpretation
Act), which has been Called the “Law of All Laws”.
* If any word is defined many times in an Act differently, which is confusing situation, then Definition
of General Clauses Act, 1897 is generally used.
Example 5: Wherever the law provides that court will have the power to appoint, suspend or remove
a receiver, the legislature simply enacted that wherever convenient the court may appoint receiver
and it was implied within that language that it may also remove or suspend him.
- Rayarappan V. Madhavi Amma, 1950
4. To guard against slips and oversights by importing into every Act certain Common Form Clauses, which
otherwise ought to be inserted in every Central Act.
The Applicability of the General Clauses Act

1. The General Clauses Act does Not define any ‘Territory extent’ Clause.
2. It shall apply to every Territory where a Central Act is applicable and would apply in the
construction of that Central Act. Article 367 of the Constitution of India authorises use of General
Clauses Act for the interpretation of constitution.
Goyal Institute of Commerce & Science 12.1 98960-70560, 92151-70560

By: - CA. Sumit Goyal The General Clauses Act, 1897
Process/Sequence of using the meaning of any Word

1. Definition of the respective Act is used First.
2. Reference of any Other Act is used in any Act then the meaning of any ‘Word’ from other Act can be
used. (e.g. words, Security, Resident are Not defined in Companies Act, 2013 but the meaning of
Security is taken from Sec. 2(h) of SCRA and Resident from Income Tax Act, 1961)
3. Meaning from General Clauses Act (GCA, 1897) is to be taken.
4. Common Parlance Theory is used.
SOME BASIC UNDERSTANDING OF LEGISLATION

Preamble (Object) of Act
A Preamble is an Introductory statement in a Document that Explains the Documents purpose
(purpose to form Law) and underlying Philosophy.
When Applied to the Opening Paragraphs of a Statute, it may recite historical facts relating to the
subject of the Statute. It gives brief background of the Act.
The preamble expresses the Scope and Object of the a more Comprehensively than the Long Title.
It Conveys the main Objectives of an enactment in a Summary way.
Where a Phrase used in the Enactment (Act/Law) has more than one meaning, the preamble may be
used as a guide to find out the legislative intent and then arrive at the true meaning of such phrase.
The Preamble may recite the ground and the cause of making a Statute and the evil which is sought
to be Remedied by it. Preamble is the part of the Act.
In Case of a Conflict between the Preamble and Section, the Permeable is Succumb (to be
ignored) and Section/ provision (of the Law) shall prevail. Preamble Can’t Override the plain
provision of the Law.
The Preamble of the Act can be used to Understand the intention of Legislature, if meaning
of the word in the Act is Not Clear. (If an enactment is Clear and unambiguous the permeable
must be disregarded).
Preamble is key to read the mind of the maker of Act. It is part of Act and can be Read with
other portions of the Statute to find out the meaning of the Words.
In Older statute, importance of Preamble is Not Considered as significant.
Kashi Prasad vs. State, the Court held that even though the Preamble Cannot be used to
defeat the enacting Clauses (Sections) of a Statute, it can be treated as a key for the
interpretation of the statute.
Example 1, Preamble of The Sale of Goods Act, 1930 :-

An Act to Define and amend the Law relating to the Sale of Goods.
Example 2, Preamble of the Companies Act, 2013 is- It is an Act to Consolidate (Consolidation of
Old Co. Act, 1956) and Amend the Law in relation to Company.

Example 3 : Use of the word ‘May’ in Section 5 of the Hindu Marriage Act,1955 provides that “a
Marriage may be Solemnized between two Hindus.....” has been construed to be mandatory in the
sense that both parties to the Marriage must be Hindus as defined in section 2 of the Act. It was held
that a marriage between a Christian male and a Hindu female solemnized under the Hindu Marriage
Act was void. This result was reached also having regard to the Preamble of the Act which reads:-
‘An Act to amend and codify the Law relating to Marriage among Hindus’
- Gullipoli Sowria Raj V. Bandaru Pavani, (2009)
Definitions of any Act:

Every Act contains Definition part for the purpose of that particular Act and that Definition part are usually
mentioned in the initial Sections (e.g. Sec. 2, 3, etc.) of the respective Acts. However, if there may be words
which are Not Defined in the Definitions of any Central or State Act, the meaning of such Words may be
taken from General Clauses Act, 1897.
For Example, The Word ‘Company’ used in the Companies Act, 2013 is Defined in Sec. 2(20) of the
respective Companies Act, 2013 but the Word ‘Digital Signature’ used in the Companies Act, shall be
construed as per the Sec. 2(1)(p) of the Information Technology Act, 2000.
The Word ‘Affidavit’ used in Sec. 7 during the Incorporation of Company, in the Companies Act, 2013 shall
derive its meaning from the Word ‘Affidavit’ as Defined in the General Clauses Act, 1897.
“Means” and/or “Include”: Some Definitions use the Word “Means”. Such Definitions are
Exhaustive (Comprehensive and Complete, Nothing else) Definitions and Exactly Define the Term.
Example (1) : Definition of ‘Company’ as Given in Sec. 2(20) of the Companies Act, 2013. It states,
“Company” means a Company Incorporated under this Act Or Under any Previous Company law. It is
Exhaustive Definition (Nothing else Can’t treated as Company according to this definition).
Example (2) : Section 2(34) of the Companies Act, 2013 defines the term Director as “Director” means a
Director Appointed to the Board of a Company. It is also an Exhaustive Definition.
Some Definitions Use the Word “Include”. Such definitions do Not Define the Word But are Inclusive in
Nature. Where the Word is Defined to ‘Include’ Such and Such, the Definition is ‘Prima Facie’ Extensive
(Covering a Large Area Or having a great Range). The Word defined is Not Restricted to the Meaning
assigned to it But has Extensive Meaning which Also Includes the Meaning Assigned to it in the Definition
Section (Includes Means some other matters can also be included except specified matters in definition).
Example (1) : Word ‘Debenture’ Defined in Sec. 2(30) of the Companies Act, 2013 states that “Debenture”
Includes Debenture Stock, Bonds Or Any Other Instrument of a Company Evidencing a Debt, Whether
Constituting a Charge on the Assets of the Company Or Not”. This is a Definition of Inclusive Nature.
Example (2) : “Body Corporate” Or “Corporation” Includes a Company Incorporated Outside India.
[Sec. 2(11) of the Companies Act, 2013].
The Above Definition of Body Corporate does Not Define the term Body Corporate, But Just States that
Companies Incorporated Outside India will Also Cover under the Definition of Body Corporate, Apart from
Other Entities which are Called as Body Corporate (it means other Entities Can also be Covered under body
Corporate e.g. LLP, Co-operative Societies, etc.).
We may also find a Word being Defined as ‘Means and Includes’ Such and Such: here Again the Definition
would be Exhaustive (Comprehensive/Entire and Complete) .

Example : Share Defined u/s 2(84) of the Companies Act, 2013, States that “Share” Means a Share in the
Share Capital of a Company and Includes Stock. (It is also an Exhaustive definition)
On the Other Hand, if the Word is Defined ‘to Apply to and Include’, the Definition is Understood as
Extensive {Covering a Large Area (Comprehensive and Detailed) Or having a great Range}.
“Shall” and “May” :

The Word ‘Shall’ is used to Raise a Presumption of Something which is Mandatory or Imperative
(Vital importance/Crucial) while the Word ‘May’ is used to Connote (Express) something which is Not
Mandatory But is Only Directory (a Provision under Law Or Rule) Or Enabling. Hence, While Interpreting
any Provision of Law, the Words “Shall” and “May” have to be Given Utmost Importance to Understand
What is Mandatory and What is Optional Or Directory (Discretionary Power) under Law. All depends on
the Intention of Law Makers.
May is Directory and Shall is Mandatory

Example : As per the Rule of Educational Institute, Every Student May Come on weekend for Extra
Classes but Every Student Shall appear for weekly Test conducted by Institute. Here, Extra Classes is
Optional (May) but Test is Compulsory (Shall).
Example (1) : Sec. 3 of the Companies Act, 2013 States that “A Company May be Formed for any Lawful
Purpose by................”
Here the Word Used “May” shall be Read as “Shall”. Usage of Word ‘May’ here makes it Mandatory’ for a
Company for the Compliance of Sec. 3 for its Formation. (It means Company Can’t do Illegal Business)
Example (2) : Sec. 21 of the Companies Act, 2013, provides that Documents/ Proceeding requiring
Authentication or the Contracts made by Or on behalf of the Company, may be Signed by Any Key
Managerial Personnel Or an Officer of the Company duly Authorized by the Board in this behalf.
Usage of the ‘May’ shall be Read as ‘May’. It means Documents/Contracts Can be Signed by Any
Authorised Person.
The Use of Word ‘Shall’ with respect to One matter and Use of Word ‘May’ with respect to Another matter
in the same Section of a Statute, will Normally Lead to the Conclusion that the Word ‘Shall’ imposes an
Obligation, Whereas Word ‘May ’ Confers a Discretionary Power (Labour Commr., M.P.V. Burhanpur
Tapti Mill, AIR, 1964 SC 1687).
Our Approach in this Text is to provide Basic Understanding of Law While Studying any Legislation. These
are few Concepts Which Every Student should keep in mind while Studying Law. Some Other Related
aspects will Cover under the Chapter of ‘Interpretation of Statutes’.
PRELIMINARY ( Sec. 1)
“Short Title” [Sec. 1(1)]: This Act may be Called the General Clauses Act, 1897.
Preliminary is the introductory part of any Law which generally contains Short Title, Extent,
Commencement, Application etc. The Title although the part of the Act is in itself Not an enacting
Provision. Every Act is given a Title to carve out itsOwn identity just like people are given their Names to
identify them.
The General Clauses Act, 1897 contains Only Short Title in the Preliminary part of the Act.
Note: Sec. 2 of the General Clauses Act, 1897 has been Repealed.

Definitions (Sec. 3 of the General Clauses Act, 1897)

Sec. 3, which is the Principal Section containing Definitions, Applies to the General Clauses Act itself and
to Post 1897 Central Acts and Regulations unless those Laws contain separate Definitions of their Own.
(Generally, all Laws cover the Definition under Sec. 2 but GCA, 1897 covers the Definition u/s 3)
In this Act, and in All Central Acts and Regulations made after the Commencement of this Act, unless there
is Anything Repugnant (in Conflict Or Unacceptable/Inconsistent) in the Subject Or Context, : –
Act (Act here means doing something Not of any Enactment) Sec. 3(2)
‘Act’, used with Reference to an Offence Or a Civil Wrong, shall include a Series of acts, and words
which Refer to acts done extend also to Illegal Omissions.
An act required to be done cannot necessarily mean a positive act only and may also include acts
which one is precluded from doing from decree. This Definition is based on sections 32 and 33 of the
Indian Penal Code and applies to civil wrongs as well as Crimes. 'Act' includes illegal omissions as
well but it does Not include an omission which is not illegal.
In the illustration to Section 36 of the Indian Penal Code, the act 'by which A Causes Z's Death
consists of a Series of acts, namely, the blows given in Beating him, plus a series of illegal
omissions, namely, wrongfully neglecting Or refusing to supply him with Food at proper times.
Affidavit [ Sec. 3(3)] (a Declaration on the Stamp Paper to anyone e.g. Court, Govt. Deptt., etc.)
‘Affidavit’ shall include Affirmation (to confirm Or Ratify) and Declaration in the Case of persons
by Law Allowed to Affirm Or Declare instead of Swearing.
This Definition does Not define Affidavit. However, we can understand this term in General
Parlance. Affidavit is a Written Statement (on stamp paper) confirmed by Oath Or Affirmation for
use as Evidence in Court Or before any Authority.
Central Act Sec. 3(7)

‘Central Act’ shall means an Act of Parliament {i.e. after the Commencement of the Constitution of
India (26-01-1950)} , and shall include :–
(a) An Act of the Dominion Legislature (i.e. Legislature passed by British Govt. for its Colonies
before 15-8-1947) Or of the Indian Legislature passed (Law enacted by Indian Govt. between
15-8-47 to 26-1-50, e.g. The Indian Contract Act, 1872 (i.e. Contract Act, 1872 Converts to
Indian contract Act, 1872 in year 1947) was enacted by Indian Govt before the
Commencement of the Constitution and CA Act, 1949 also enacted before the constitution),
before the Commencement of the Constitution,
Structure of the British Govt:- (1) Chief Commissioner’s Province/State :- Middle Level or
Minority types of Province (States) in British India.
(2) Governor General :- for Larger Level of Province/States (e.g. Bengal, Madras,
Maharashtra was covered under Larger Province in the British Rule. Further
Governor General are divided in 2 Parts :- One is Governor General in Council who
were worked through the Committees (who framed Laws with discussion within the
Committee) and Second is Governor General acting in a Legislature Capacity who
were Sole Decision maker (who are able to make Law on his own Individual
Capacity).
(b) an Act made before such Commencement by the Governor General in Council Or the
Governor General, acting in a Legislature Capacity.

Central Government Sec. 3(8)

‘Central Government’ shall, : -
(a) in relation to anything before the Government of the Constitution mean Governor General in
Council (between 15-8-1947 to 26-1-1950), as the Case may be, and shall include, -
(i) in relation to Functions entrusted under Sub-section (1) of Section 124 of the
Government of India Act, 1935, to the Government of a Province, the Provincial
Government acting within the Scope of the Authority given to it under that u/s 94(3)
of the said Act, and (Govt. of Province- Small provinces are there before independence)
(ii) in relation to the Administration of a Chief Commissioner’s Province, the Chief
Commissioner acting within the Scope of the Authority given to it under that
u/s 94(3) of the said Act, and
(b) In relation to Anything done or to be done after the Commencement of the Constitution,
mean the President (After Constitution i.e. 26-1-1950). And shall include :–
(i) in relation to Functions entrusted under Clause (1) of Article 258 of the Constitution,
to the Government of a State, the State Government acting within the Scope of the
Authority Given to it under that Clause,
(ii) in relation to the Administration of a Part C State before the Commencement of the
Constitution (Seventh Amendment) Act, 1956, the Chief Commissioner Or the
Lieutenant-Governor (LG) Or the Government of a Neighboring State Or other
Authority acting within the Scope of the Authority given to him or it under Article
239 Or Article 243 of the Constitution, as the Case may be, and
(iii) in relation to the Administration of a Union Territory (e.g. Chandigarh, Andeman,

etc), the Administrator thereof acting within the Scope of the Authority given to him
under Article 239 of the Constitution.
Commencement (when the Act will come in operation) Sec. 3(13)]

‘Commencement’ used with Reference to an Act Or Regulation, shall mean the Day on which the
Act Or Regulation Comes into force. Sometimes, a Date is given in the Act from which it will be
enforced.
Coming into force Or entry into force (Also called commencement) Refers to the process by which
legislation; Regulations, Treaties and other Legal instruments come to have Legal force and effect.
Document Sec. 3(18) (same as Interpretation of Statute)

‘Document’ shall include any matter Written, Expressed Or Described upon any Substance by means
of Letters, Figures Or Marks, Or by more than One of those means which is intended to be Used, Or
which may be Used. For the Purpose or Recording that matter.
For Example, Book, file, painting, inscription and even Computer files are all Documents. However,
it does Not include Indian Currency Notes.

Enactment Passing Something Sec. 3(19) (Enactment means Act or Law)

‘Enactment’ shall include a Regulation (as hereinafter Defined) and any Regulation of the Bengal,
Madras Or Bombay Code, and shall also include any Provision Contained in any Act Or in Any Such
Regulation as aforesaid.
It has been held that an “Enactment” would include any Act (Or a Provision contained therein) made
by the Union Parliament or the State Legislature.
Rules and Regulation are Nothing but a Species of Legislation. The Legislature instead of enacting
the same itself delegates the Power to other person. Whatever is enacted by the Delegate of
Legislature is also Enactment
Financial Year Sec. 3(21)

‘Financial year’ shall mean the year Commencing on the First day of April and ended on 31st March
of Next year.
The term Year has been defined under Section 3(66) as a year reckoned according to the British Calendar.
Thus, as per General Clauses Act, Year means Calendar year which starts from January to December.
Difference between Financial Year and Calendar Year: Financial year starts from first day of April but
Calendar Year starts from first day of January.
Good Faith Sec. 3(22)

A thing shall be deemed to be done in ‘Good faith’ Where it is in fact done Honestly, Whether it is
done Negligently Or Not.
Thus, anything done with due care and attention, which is not malafide is presumed to have been
done in good faith. For e.g. An Authority is Not acting honestly where it had a Suspicion that there
was something wrong and did Not make further Enquiries.
The term “Good Faith” has been Defined differently in different enactments. This Definition of the
Good faith does Not Apply to that Enactment which contains a Special Definition of the term “Good
Faith” and the Definition given in that particular enactment has to be followed.
In Maung Aung Pu Vs. Maung Si Maung, it was pointed out that the expression “Good faith” is
Not Defined in the Indian Contract Act, 1872 and the definition given here in the General Clauses
Act, 1897 does Not expressly Apply the term on the Indian Contract Act. The Definition of Good
faith as is generally understood in the Civil law and which may be taken as a practical guide in
understanding the expression in the Contract Act is that nothing is said to be done in Good faith
which is done without Due care and attention as is expected with a man of Ordinary prudence.
An honest purchase made carelessly without making proper enquiries Cannot be said
to have been made in good faith so as to convey good Title.
Government Or the Government Sec. 3(23)

‘Government’ Or ‘the Government’ shall include Both the Central Govt. and any State Govt.
Government Securities Sec . 3(24)

‘Government Securities’ shall mean Securities of the Central Govt. and any State Govt.

Immovable Property Sec. 3(26)

‘Immovable Property’ shall include Land, benefits to arise out of Land, and things attached to
the Earth (e.g. Standing Tree, etc. until it is cut down), Or Permanently Fastened to Anything
attached to the Earth (e.g. Buildings, bunglows, etc.)
Example 1 : Trees are Immovable Property because Trees are Benefits arise out of the Land and attached
to the Earth. However, Timber is Not Immovable Property as the same are Not Permanently attached to the
Earth. In the same manner, Buildings are Immovable Property.
Example 2: Right of way to access from One Place to Another, may come within the Definition of
Immovable Property Whereas to Right to Drain of Water is Not Immovable property. Any Machinery Fixed
to the Soil, Standing Crops Can be held as Immovable property According to the General Clauses Act, 1897.
Example 3: A Claim of the Right to catch Fish came under the Consideration of Court in Ananda
Behera v. State of Orissa. The Court tended to decide Whether the right to Catch Or Carry Fish is a
Movable Or Immovable Property.
Sec. 3(26) of the General Clauses Act, 1897 reads as under: - “Immovable property” shall include Land,
benefits to arise out of Land, and things attached to the Earth, Or permanently fastened to anything attached
to the Earth;” The Sec. 3 of Transfer of Property Act does Not define the term Except to say that
Immovable Property does Not include Standing Timber, Growing Crops Or Grass. As Fish do Not come
under that Category, the Definition in the General Clauses Act Applies and as a Profit a prendre (Right of
taking Soil Or produce of Land that someone else Owns, mean jiske jameen Rent pe li hai wohi Fish pe right
rakhta hai) is regarded as a benefit arising out of Land, it follows that it is immovable property within the
meaning of the Transfer of Property Act.”
Thus, the Court construed “Right to catch or carry Fish‟ as an Immovable property .
Que: X Owned a Land with 50 Tamarind Trees (Imli). He Sold his Land and the Timber (obtained after
Cutting the 50 Trees) to Y. X wants to know Whether the Sale of Timber tantamount to Sale of Immovable
Property. Advise him with Reference to provisions of General Clauses Act, 1897?
Ans: Sale of Timber does Not amount to Sale of Immovable Property

Since Timber obtained after Cutting the Trees is Not covered under any of the following Expressions
{as used under Clause (26) of Sec. 3 of the General Clauses Act, 1897};
* Land
* Benefits to arise out of Land

* Things attached to the Earth, or Permanently fastened to anything attached to the Earth
Imprisonment (Jail) Sec. 3(27)
‘Imprisonment’ shall mean Imprisonment of Either Description as defined in the Indian Penal Code.
By Section 53 of the Indian Penal Code, the Punishment to which offenders are Liable under that
Code are Imprisonment which is of two descriptions, namely, Rigorous, that is with hard Labour and
Simple. So, when an Act provides that an Offence is Punishable with imprisonment, the Court may,
in its Discretion, make the imprisonment Rigorous Or Simple.

Indian Law [Sec.3(29)] (Indian Law i.e. Anything which is passed in India before 26-1-1950)
‘Indian Law' shall mean any Act, Ordinance, Regulation, Rule, Order, Bye-Law (Regulation made
by Local Authority Or Corporation) Or Other Instrument which before the Commencement of the
Constitution, had the force of Law in any Province of India Or Part thereof, Or thereafter has the
force of Law in any part A State Or Part C State Or Part thereof, but does Not include any Act of
Parliament of the United Kingdom Or any Order in Council, Rule Or other Instrument made under
Such Act.
Month [Sec.3(35)] (Month does Not mean Hindu Months like Jeth, sawan, bhado, etc., In
Laws/enactments, Month means Months according to British Calanders e.g. Jan, Feb, Dec., etc.)
'Month' shall mean a Month reckoned According to the British Calendar.
Movable Property [Sec.3(36)]

'Movable Property' shall mean Property of Every Description, Except Immovable Property.
Thus, any Property which is Not Immovable Property is Movable Property. Debts, Share, Electricity
are Moveable Property.
Oath [Sec.3(37)] (In general Language- Shapth, e.g. Oath at the joining of any duty/Job/Ministry, Or Oath before
the Court, etc.)
‘Oath’ shall include Affirmation (to confirm Or Ratify) and Declaration, in the Case of Persons by
Law Allowed to Affirm Or Declare instead of Swearing.
• The Oath is a Religious Commitment Where as an Affirmation is Non-Religious (i.e. does Not
refer to God).
Offence [Sec.3(38)] (doing something wrong i.e. Crime)

‘Offence’ shall mean any act Or Omission made Punishable by any Law for the time
being in force.
Any act Or omission which is if done, is punishable under any Law for the time being in force, is
Called as Offence
Official Gazette Or Gazette [Sec.3(39)] (i.e. Magazine issued by the CG and SG separately)
‘Official Gazette’ Or ‘Gazette’ shall mean the Gazette of India Or the Official Gazette
of a State.
The Gazette of India is a public journal and an authorised legal document of the Government of
India, published weekly by the Department of Publication, Ministry of Housing and Urban Affairs.
As a public journal, the Gazette prints official notices from the government. It is authentic in content,
accurate and strictly in accordance with the Government policies and decisions. The gazette is
printed by the Government of India Press.
Person [Sec.3(42)] ‘Person’ shall include any Company Or Association Or Body of Individuals
(Company or AOP or BOI), Whether Incorporated Or Not.
But we know that Under Income tax Act, 1961, Person is defined u/s 2(31) so that Definition must be
followed for Income Tax purpose, Definition of Person under the General Clauses Act is to be ignored in
that Case.

Registered [Sec.3(49)]
‘Registered’ used with Reference to a Document, shall mean Registered in India under the Law
for the time being in Force of the Registration of Documents.
Rule [Sec.3(51)]
'Rule' shall mean a Rule made in Exercise of a Power Conferred by any Enactment (Act), and shall
include a Regulation made as a Rule under any Enactment e.g. Companies Rules, 2014 has been
framed in concerned to matters covered under The Companies Act, 2013.
Schedule [Sec.3(52)] (e.g. Schedule I, II, III, etc. of Companies Act, 2013)
'Schedule' shall mean a Schedule to the Act Or Regulation in which the word occurs.
Section [Sec.3(54)]
'Section' shall mean a Section of the Act Or Regulation in which the Word Occurs.
Sub-Section [Sec.3(61)]
‘Sub-Section’ shall mean Sub-section of the Section in which the Word occurs.
Swear (In general Language- Kasam, e.g. I swear in the Name of God………) [Sec.3(62)]
'Swear' with its Grammatical Variations and Cognate Expressions, shall include Affirming (to
Confirm Or Ratify) and Declaring in the Case of Persons by Law allowed to Affirm or Declare
instead of Swearing.
Note: The terms “Affidavit”, “Oath” and “Swear” have the same Definitions in the Act.
Writing [Sec.3(65)]
Expressions referring to ‘Writing’ shall be construed (understood) as including References to
Printing, Lithography (metal ya stone se chappa lagana), Photography and other modes of
representing Or Reproducing Words in a Visible Form.
Year [Sec.3(66)]
‘Year’ shall mean a year Reckoned According to the British Calendar (i.e. 1st Jan to 31st Dec.)

Application of Foregoing Definition to Previous Enactments (Sec. 4)

Definitions comes in part, some Definition comes in 1868 Or in 1887 Or 1897. Sec 4 and 4A defines the
Words Or Definition which are Applicable to the certain Laws enacted between Above periods.
Effective Date of Certain Words and Expressions

Unless there is Anything repugnant (inconsistent) in the subject or context, the following words and
expressions, as defined in Sec. 3 of the General Clauses Act, 1897, shall Apply to All Central Acts
made After the 3rd Day of January, 1868, and to all Regulations made on Or After the 14th day of
January, 1887:-
Affidavit Magistrate
Swear Month
Year Movable Property
Section Oath
Immovable Property Person
Imprisonment
Effective Date of Certain Other Words and Expressions
Unless there is anything repugnant in the subject or context, the following Words and Expressions,
as defined in Sec. 3 of the General Clauses Act, 1897, shall Apply to All Central Acts and
Regulations made on Or After the 14th Day of January, 1887:-
Writing Schedule
Sub-Section Offence
Commencement Part
Financial year Registered
Acts (e.g. Contract Act, 1872 Or Negotiable Instrument Act, 1881) formed between 1868 to 1897,
GCA, 1897 will be applicable regarding certain Definitions Only as given above. Acts framed
before GCA, 1868 (e.g. Indian Penal Code, 1860), GCA 1897 is Not applicable over that Acts.
Application of Certain Definitions to All Indian Laws (Sec. 4A)
Applicability of Certain Words and Expressions to All Indian Laws

Unless there is anything repugnant in the subject or context, the following words and expressions, as
defined in section 3 of the General Clauses Act, 1897, shall Apply to All Indian Laws:-
Official Gazette Government Part A State
Central Act Government Securities Part B State
Central Government High Court Provincial
Gazette India Government
Authority Indian Law Constitution
State Government Indian State
Construction of Words referring to Revenues of CG / SG

In any Indian Law, references, by whatever form of Words, to Revenues of the Central Government
Or to any State Government shall, on and from the first day of April, 1950, be Construed as
References to the Consolidated Fund of India or the Consolidated Fund of State, as the case may be.

GENERAL RULES OF CONSTRUCTION
Coming into Operation of Enactments (Sec. 5)
Where any Central Act does Not expressly Specify any Particular day as to the Day of Coming into
Operation of Such Central Act, then it shall Come into Operation on the Day on which it Receives
Assent { i.e. Approval (Sign of) of the Governer General Or President of India} : -
(a) (In the Case of a Central Act made before the Commencement of the Constitution), of the Governor
General (For Act enacted between 15-8-1947 to 26-1-1950); and
(b) (In the Case of an Act of Parliament), of the President (For Act enacted after 26-1-1950).
Example: The Companies Act, 2013 received Assent of President of India on 29th August, 2013 and was
Notified in Official Gazette on 30th August, 2013 with the enforcement of Section 1 of the Act. Accordingly,
the Companies Act, 2013 came into enforcement on the Date of its Publication in the Official Gazette.
Where, if any Specific Date of Enforcement is prescribed in the Official Gazette, Act shall into Enforcement
from such Date (e.g. Companies Act, 2013 passed in the year 2013 but enforced from 1st April, 2014).
Law / Act may be effective Retrospectively if it is Clearly Specifically mentioned in the Act / Law.
Generally, all Laws/ Acts are Applicable Prospectively.
Example: SEBI (Issue of Capital and Disclosure Requirements) (Fifth Amendment) Regulations, 2015 was
issued by SEBI vide Notification dated 14th August, 2015 with effect from 1 January, 2016.
Here, this Regulation shall come into enforcement on 1st January, 2016 rather than the Date of its
Notification in the Gazette.
The Supreme Court in A.K. Roy v UOI, 1982, observed that where an Act empowers the government to
bring any of the provisions into operation on any day which it deems fit, no Court can issue a mandamus
(written order of Court commanding the performance of Official duty) with a view to compel the
Government to bring the same into operation on particular day.
However, in Altemeis Rein v UO, 1768, it was held that if a sufficient time has elapsed Since an Act Or any
of its provisions has been passed and it has Not been brought into force (operation) by the Government, the
Court through a writ (written Order) can direct the Government to consider the question as to When the
same should begin to operate.
In the Case of State of Uttar Pradesh v. Mahesh Narain, AIR 2013 SC 1778, Supreme Court held that
Effective Date of Rules would be When the Rules are Published vide Gazette Notification and Not from
Date When the Rules were under Preparation.
Also, law takes No cognizance of fraction of day, thus where an Act provides that it is to come into force on
the First day of January, it will come into force on as soon as the Clock has struck 12 on the Night of 31st
December.

Effect of Repeal (Cancellation as if Not Existed from the Beginning Or jadd se Khatm kar dena)
(e.g. Companies Act, 1956, Wealth Tax Act, 1957 and VAT Act Repealed) (Sec.6)
‘Repeal’ means Cancel, i.e., as if it Never Existed and it shall have no effect to anything prior of after such
Cancellation, e.g. VAT Act is Repealed.
However, Repealing any Act does Not Change anything done as per the Act in the Past When is was
Prevlent.
Where any Central Act Repeals Any Enactment then, Unless a Different Intention Appears (unless another
purpose Exists), the Repeal shall Not (Exception of Repeal i.e. following will Not be affected due to Repeal
of Enactment) :-
(a) Revive Anything Not in force Or Existing at the time at which the Repeal takes effect (e.g. Govt
Repeal Companies Act, 1956, it does Not mean that Companies Act, 1913 will Revive); Or
(b) Affect the Previous Operation of any Enactment so Repealed Or Anything duly Done Or Suffered there
under (Suppose, a Director of Company has been appointed under the provisions of Companies Act,
1956 but his appointment will continue and will remain unaffected even after repealing of Companies
Act, 1956); Or
(c) Affect any Right, Privilege, Obligation Or Liability Acquired, Accrued Or Incurred under any Enactment
so Repealed (e.g. Debentures raised/issued by Company under the Compliance of Companies Act, 1956
and Companies Act, 1956 Repealed later then it will Not affect the Existence of Debt/ Debentures
against Company i.e. Company is continuously liable over such Debentures) ; Or
(d) Affect any Penalty, Forfeiture Or Punishment incurred in respect of Any Offence Committed against any
Enactment so Repealed. Example, A person punished for 5 yr imprisonment under Companies Act,
1956 and Companies Act, 1956 was repealed Later, and Suppose Companies Act, 2013 awards the 7
years Imprisonment for same Offence then it does Not mean his Imprisonment will be extended); Or
(e) Affect any Investigation, Legal proceeding Or Remedy in respect of any such Right, Privilege,
Obligation, Liability, Penalty, Forfeiture Or Punishment is aforesaid and any Such Investigation, Legal
proceeding Or Remedy may be Instituted, Continued Or Enforced, and any such Penalty, Forfeiture Or
Punishment may be imposed as if the Repealing Act Or Regulation had Not been Passed (e.g. person
punished for 1 yr imprisonment under Liquor Prohibition Act and Liquor Prohibition Act repealed Later,
it does Not mean, that person will get free due to repeal of the Prohibition Act, Cases will remains
operative/continue even after Repeal of Liquor Prohibition Act).
Example, Co. Act, 1956 is Repealed, suppose a Managerial person has been appointed under the provision
of the Co. Act, 1956, his remuneration was decided under that Act, any Legal proceeding initiated against
him under Co. Act 1956 then On repealing the Co. Act, 1956, his Remuneration, his appointment, legal
proceeding against him will Not affect.
In State of Uttar Pardesh Vs. Hirendra pal Singh, (2011), SC held that whenever an Act is Repealed, it
must be Considered as if it had Never Existed. Object of Repeal is to Obliterate (Wipe out/Erase or
disappear) the Act from Statutory Books, Except for Certain purposes as provided u/s 6 of the Act.
Repeal Vs Deletion
Repeal means Cancellation (disapper) something from the beginning i.e. it was Not existed in your life
but Delete means it was existed till the Date, After that it is Not existed (In Other words, Deletion means
such Provision/Act Existed till the date of Deletion. But does Not Exist on situation after deletion). In
both the Cases Acts are Not Existed at the end.

In Narangpura Gam Dharmada Milkat Trust Vs. Rmtuji Ramaji, AIR 1994 Guj 75: ‘Repeal’ of Provision
is in Distinction from ‘Deletion’ of Provision. ‘Repeal’ Ordinarily brings about Complete Obliteration (jadd
se khatm hona) of the provision as if it never Existed, thereby affecting all incoherent (Unclear or Not
consistent) Rights and all Causes of action related to the ‘Repealed’ provision while ‘Deletion’ ordinarily
takes effect from the date of legislature affecting the said deletion, Never to effect total effecting or Wiping
out of the Provision as if it Never existed. For the purpose of this Section, the above distinction between the
two is Essential.
Example of Repeal and Delete of any Provision of Law :- Suppose a Person do any mischief under
any provision of Companies Act, 1956 which was Not detected till the time of Repeal of Companies Act,
1956, that mischief detected Now (after Repeal of Companies Act, 1956) will Not have any effect, it means
that person will Not be hold liable for Past mischief related to repealed Act. But you should remember that
if that mischief has already been detected before repeal of Companies Act and get imprisonment of 2 yrs
then that imprisonment will remain unaffected even after the repeal of Companies Act, 1956.
On the Other hand, suppose a mischief or wrong doing done in past and it was detected after the Deletion
of that respective Act or its provision regarding which mischief has been done then the person will be
hold liable even after deletion of that Act or Provision. Deletion will Not effect the wrong doings of past
period.
Repeal of Act Making Textual Amendment in Act Or Regulation (Sec. 6A)
Where any Central Act Or Regulation made After the Commencement of this Act Repeals any Enactment by
which the Text of any Central Act or Regulation was Amended by the Express Omission, Insertion or
Substitution of any matter, then, Unless a different intention Appears, Repeal shall Not affect the
Continuance of any Such Amendment made by the Enactment so Repealed and in Operation at the time of
Such Repeal.
Example 1, Companies Act, 1956 repealed but Reference to Companies Act, 1956 is given in Other Law
(e.g. Income Tax Act) then Other Laws Can’t be amended, Other Laws shall have to consider same meaning
of Companies Act, 1956 Or the meaning from New Companies Act, 2013 .
Example 2, SEBI Act has been referred Sec. 202 (of the Punishment to Promoters for the Negligence in the
formation of the Company) of the Companies Act, 1956 for certain Clarification, Now Co. Act, 1956 has
been Repealed, it does Not mean SEBI Act has also been Repealed. SEBI Act will Not be affected wholly.
Example 3, Bonus Act Refer the meaning of F.Y. as under Co. Act, 1956. In that Case, No Need to Change
All Acts which has used the meaning of Co. Act, 1956 (which is Repealed), Meaning Can be drawn from
Companies Act, 2013.
Revival (Coming back) of Repealed Enactments (Sec. 7)

Express Provision Required for Revival (Purpose/Reason of Revival is to be mentioned)
In Any Central Act or Regulations made after the Commencement of this Act, it shall be Necessary, for the
purpose of Reviving, Either Wholly or Partially, any Enactment Wholly or Partially Repealed, Expressly to
State that Purpose. Example, Companies Act, 1956 was Repealed but it was Revived by the Govt. as
Companies Act, 2013, then purpose (e.g. for Modifications with changed Environment and Circumstances)
of its Revival (After Repealing) is to be disclosed by Govt.

Construction of References to Repealed Enactments (Sec. 8)

Situation where a Provision is Repealed and is Re-enacted by Any Other Act
Where this Act, or Any Central Act or Regulation made After the Commencement of this Act, Repeals and
Re-enacts, With or without Modification, any Provision of a Former Enactment, then References in any
other Enactment or in any Instrument to the Provision so Repealed shall, Unless a different Intention
Appears, be Construed (to interpret/understood) as References to the Provision so Re-enacted (New Act).
Situation Where a Provision is Repealed and is Re-enacted by any Act before 15th August, 1947
Where before the l5th day of August, 1947, any Act of Parliament of the United Kingdom Repealed and
Re-enacted, With or without Modification, any Provision of a Former Enactment, then References in any
Central Act or in any Regulation or instrument to the Provision so Repealed shall, Unless a different
intention Appears, be construed as Reference to the Provision so re-enacted.
In Gauri Shankar Gaur Vs. State of U.P., AIR 1994 SC 169, it was held that Every Act has its Own
Distinction. If a later Act merely makes a Reference to a Former Act or Existing Law, it is Only by
Reference and all amendments, Repeals New Law subsequently, made will have effect unless its operation
is saved by the relevant Provision of the Section of the Act.
Example, In Sec. 115JB of the Income Tax Act, 1961, for Calculation of Book Profits of the Companies
Act, 1956 are Required to be referred. With the Advent (beginning/Arrival) of Companies Act, 2013, the
corresponding change has Not been made in Sec. 115JB of the Income Tax Act, 1961. On Referring of
Sec. 8 of the General Clauses Act, Book Profits to be Calculated u/s 115JB of the Income Tax Act will be as
per the Companies Act, 2013.
Commencement and Termination of Time (Sec. 9)

In any Central Act or Regulation made after the Commencement of this Act, is shall be Sufficient, for the
Purpose of Excluding the First in a Series of Days or Any Other period of time, to Use the Word ‘from’, and
for the purpose of including the Last in a Series of days or Any other period of time, to Use the Word ‘to’.
(i.e. While counting Gap days From 1 Jan to 28 Feb, we should ignore 1 Jan and to include 28 Feb)
Example, If a Company declares Dividend for its shareholder in its AGM held on 30-9-2021. Under the
Provisions of the Companies Act, 2013, Company is Required to pay declared Dividend within 30 days from
the date of declaration i.e. from 1-10-21 to 30-10-21. In this Series of 30 days, 30-9-2021 will be Excluded
and Last 30th day i.e. 30-10-2021 will be included.
Computation of Time (Sec. 10)

Where, by any Central Act or Regulation made After the Commencement of this Act, any act or Proceeding
is directed or Allowed to be done or taken in any Court or Office on a Certain day Or Within a Prescribed
period, then, if the Court or Office is Closed on that Day Or the Last day of the Prescribed Period, the act or
Proceeding shall be Considered as done or taken in Due time if it is done or taken on the Next day
afterwards on which the Court or Office is Open.
Example, In K. Soosalrathnam Vs. Div. Engineer, NHC Tirunelveli, it was held by Madras High court that
since the last date of the prescribed period was subsequently to the date of Notification, declared to be a
holiday on the basis of the principles laid down in this Section, the last date of prescribed period for
obtaining the tender schedules was extended to the Next working day.
* This Section shall Not apply to any act or proceeding to which the Indian Limitation Act, 1877,
applies.

Measurement of Distance (Sec. 11)

In the measurement of any distance, for the purpose of any Central Act or Regulation made after the
commencement of this Act, that distance shall, unless a different intention appears, be measured in a straight
line on a horizontal plane.
Example, Suppose Distance is mentioned in any Act but it is Not specified that how to measure it, aerially
or horizontally, the General Clauses Act suggests to take it horizontally.
Duty to be Taken Pro rata in Enactment (Sec. 12)

Where, by any Enactment Now in force or hereafter to be in force, any Duty of Customs or Excise, or in the
Nature thereof, is Leviable on any Given Quantity, by Weight, Measure or Value of Goods or Merchandise,
then a like Duty is Leviable According to the Same Rate on any Greater or Less Quantity.
Example, Suppose Rate of Custom Duty is Specified on certain Article is Rs. 1,000 per 100 Kg, if u import
1,000 kg then according to General Clauses Act, Duty is to be taken as proportionately i.e. Rs. 10,000.
Gender and Number (Sec. 13)

Interpretation of Masculine Gender
In All Central Acts and Regulations, Any Words which Denote the Masculine Gender shall also be
taken to include Females. (Not Vice Versa, means She does Not include He)
Example, Suppose in any Act, it is specified that someone who Contravenes of the respective Act, he
is to be punished with Certain amount. The General Clauses Act Clear that he includes She.
Interpretation of Singular Words

In All Central Acts and Regulations, Words in the Singular shall include the Plural, and Vice Versa.
For Example, It is written that Ram (KMP) of X Ltd. Can be the KMP of the Subsidiary Company
of X Ltd. Also. Suppose, X Ltd. Has 3 Subsidiary Companies then Ram can be appointed KMP of
All 3 Subsidiary Companies. Here, Subsidiary mean Subsidiaries.
Non-Applicability of Sec. 13
Sec' 13 shall Not Apply if there is Anything Repugnant (Conflicted) in the Subject Or Context.

Powers Conferred to be Exercisable from Time to Time (Sec. 14)

Powers may be Exercised from Time to time (when it needs)
Where, by Any Central Act Or Regulation made after the Commencement of this Act, any Power is
conferred (provided) then Unless a Different intention Appears that Power may be Exercised from
time to time as Occasion requires.
Suppose, a Power is given to Authority, they can use that power whenever it needs e.g. Income Tax
officer is authorizes to conduct Survey then he can use that Power again and again.
Example, Power is given to ROC to incorporation of Company. It means that Power to incorporate
company can be used again and again.
Example, In Income Tax Act, 1961 provides Power to the Commissioner of Income Tax to appoint
Assessing officer for the settlement of cases, It means Commissioner will appoint Assessing officers
whenever it needs Or the demand of the occasion.
Power to Appoint to Include Power to Appoint Ex Officio (One Post because of another Post
you hold) (Sec. 15)
Where, by any Central Act or Regulation, a Power to appoint any person to fill any Office or Execute
any function is Conferred, then, Unless it is Otherwise Expressly provided, any such Appointment, if
it is made after the Commencement of the Act, may be made either by Name Or by-virtue of Office.
* Ex officio - Holding a Position or membership due to Power or influence of One’s
Office/Post and Not by Election or appointment. For Example, Chairman of Board Meeting
can be treated as the Chairman of General meeting if No other person is appointed as
Chairman of it.
Example, Under the Bye Laws of Sirsa Club, Sirsa, DC of the City will be the President of the Club.
It means a Person is the President of the Club because of the another Post of District Collector.
There is No appointment required for the president post of the Club, it is by default.
Power to Appoint to Include Power to Suspend or Dismiss (Sec. 16)

Power to appoint to be given wider meaning
Where, by any Central Act or Regulation, a Power to make any Appointment is Conferred, then,
the Authority having the Power to make the Appointment shall Also have the Power to Suspend Or
Dismiss any Person Appointed Whether by itself or any other Authority in exercise of that Power.
Example, Wherever the Law provides that Court will have the Power to Appoint a Receiver, the
Legislature simply enacted that Wherever Convenient the Court may Appoint Receiver and it was
implied within that Language that it may also Remove or Suspend him.
- Rayarappan Vs. Madhavi Amma, AIR 1950
Example, In Example of Sec. 14 as above, Commissioner has Power to appoint Assessing officer
means he has power to suspend Assessing officer whenever it requires.
Non-Applicability of Sec. 16: Sec. 16 shall Not Apply if a different intention Appears by Referring to
the Provision Contained in any Central Act or Regulation.

Substitution of Functionaries (One holding Office in Govt. or Political party) (Sec. 17)
Sufficient to mention Title of the Officer

In Any Central Act or Regulation, made After the Commencement of this Act, it shall be Sufficient,
for the purpose of indicating the Application of a Law to Every Person or Number of Persons for the time
being Executing the Functions of an Office, to mention the Official Title of the Officer at Present
Executing the Functions, Or that of the Officer by Whom the Functions are Commonly Executed.
Example, Minutes of the meeting is to be signed by Chairman of the Meeting but if he is unable to sign due
to various reasons then BOD can appoint Vice Chairman to sign the minutes but Vice Chairman has to
mention the fact of signing on behalf of Chairman (due to unavailability of Chairman).
Example, Suppose Principal of the College is required to sign the Tender agreement of the College but he
is on leave, so Vice Principal is signing on the Tender, in that Case, while signing the Tender agreement,
Vice principal has to mention in the bracket that he is Vice principal. Such information is to be given to all
stakeholders in advance.
Suppose, a Certificate of incorporation received and signed by ROC, Delhi (Name of ROC was Not
Specified) then it is valid Certificate. Sign over the description of Post/Designation is sufficient.
Successors (Cases will be succeeded by the successor of Functionaries) (Sec. 18)
Effect of Succession in Case of Functionaries Or Corporations

In any Central Act or Regulation made After the Commencement of this Act, it shall be Sufficient for the
purpose of indicating the Relation of a Law to the Successors of Any Functionaries or of
Corporations having Perpetual Succession, to Express its relation to the Functionaries or Corporations.
Suppose, If certain documents signed by ROC (Mr. X) regarding Incorporation of Company, Now Mr X get
retired. Mr Y joined as ROC in place of Mr. X. Now, Mr. Y is Not required to sign all the documents again.
Documents with X’s sign will remain valid.
Example, A Company has perpetual succession, but in case of OPC, there is Only One person and if he
dies then who will carry out the company. So Co Act has to specify the Provision of Nominee (compulsory
in Case of OPC) in that particular cases otherwise it will create Confusion about the Continuity of the
Company in case of Death of One person.
Official Chiefs and Subordinates (Sec. 19)
Applicability of Law to Subordinates

In any Central Act or Regulation made after the Commencement of this Act, it shall be Sufficient,
for the purpose of Expressing that a Law Relative to the Chief or Superior of an Officer shall Apply
to the Deputies or Subordinates Lawfully Performing the Duties of that Office in the Place of their
Superior, to Prescribe the Duty of the Superior (e.g. on Deputation for some time).
In other words, All provisions applicable regarding Duties of Officer are equally applicable to
Subordinates also. Suppose, ROC will have to do duty from 9 am to 5 pm, it means, Other
Subordinates will also join the duty from 9 am to 5 pm.
Example, In Above Example u/s 17 of Substitution, if Vice president is signing the Tender
Agreement, then same duties and responsibilities are applicable to Vice principal which are
applicable to the Principal.

Construction of Notifications, etc. Issued under Enactments (Sec. 20)

Where, by any Central Act or Regulation, a Power to issue any Notification, Order, Scheme, Rule,
Form, or Bye-Law is Conferred, then Expressions Used in the Notification, Order, Scheme, Rule,
form or Bye-law, if it is made after the Commencement of this Act, shall, Unless there is Anything
Repugnant (conflict/inconsistent) in the Subject or Context, have the Same respective Meaning as in the
Act or Regulation Conferring the Power.
In other words, If any Notification is issued under Any Act (e.g. Companies Act) then words used in the
Notification shall draw the meaning from the the respective Act (i.e. Companies Act).
Example, a Company is defined under the Companies Act, 2013 u/s 2(20) as Company is a company
formed under this Act or Earlier Act. Suppose a Notification or Order, etc. issued under the Companies
Act, in which Word Company has been used then the meaning of the Company is to be taken same as
defined the respective Act i.e. Companies Act u/s 2(20).
In Subhash Ram Kumar Vs. State of Maharashtra, AIR 2003 SC 269, it was held that ‘Notification’ in
common English acceptation mean and imply a formal announcement of a legally relevant fact and
‘Notification’ publish in Official Gazette’ means Notification published by the Authority of Law. It is a
formal declaration and should be in accordance with the declared policies Or statute. Notification Cannot be
substituted by Administrative instructions.
Power to issue, to Include Power to Add to, Amend, Vary or Rescind Notifications,
Orders, Rules, or Bye-Law (Sec. 21)
Where, by any Central Act or Regulation, a Power to issue Notifications, Orders, Rules, or Bye-laws
is Conferred (provided), then that Power includes a Power, Exercisable in the like manner and Subject to the
like Sanction and Condition, if any, to Add to, Amend, Vary or Rescind any Notifications, Orders, Rules or
Bye-laws so issued.
Example, If any Authority is has power to make Law then it is implied that they are Authorised to amend or
Cancel the Law e.g. Parliamentarian are Authorised to make Law then they are impliedly authorised to
change, amend Cancel the Law or to issue Notification,Circular under Law whenever it is required.
Example, DC of all the Districts frequently change the Orders during the era of Covid-19.
In Rasid Javed Vs. State of Uttar Pradesh, AIR 2010 SC 2275, Supreme Court held that u/s 21 of the Act,
an Authority which has Power to issue a Notification has the undoubted Power to Rescind or Modify the
Notification in the like manner.
In Shreesidhbali Steels Ltd. Vs. State of U.P., AIR 2011, SC 1175, Supreme Court held that Power u/s 21 of
the Act is Not so Limited as to be Exercised Only Once, Power Can be Exercised from time to time having
regard to Exigency (Demand or Need) of Time.
Making of Rules or Bye-Law and Issuing of Orders Between Passing and

Commencement of Enactment (Sec. 22)
Where by any Central Act or Regulation which is Not to Come into force Immediately, On the
Passing thereof , a Power is Conferred (provided) :-
(a) to make Rules or Bye-Laws, Or
(b) to issue Orders with respect to :-
- the Application of the Act Or Regulation (ie. Rules formed before the Enforceability of Act, then
Rules will be effective from Commencement of Act), Or

- the Establishment of Any Court or Office or the Appointment of Any Judge or Officer thereunder,
or for which, Anything is to be done under the Act or Regulation,
Exercise of Power- The Above Power may be Exercised at Any time After the Passing of the Act or
Regulation, But Rules, Bye-Laws or Orders so make Or issued shall Not take effect till the Commencement
of the Act or Regulation.
For Example, Sec. 408 (NCLT) of Companies Act, 2013 was made effective long after implementation of
Co. Act, 2013. It means, Rules related to that Sec. (Sec. 408) will also Not be effective till the effecting of
respective Section. First, Section will come in existence then only Rules will come in existence.
Example, Any Notification or Ruling issued after passing the Law/Act will Not have any effect till the
introduction/commencement of Act/Law (i.e. Approval of President). Suppose Contract Act passed on
25-4-1872 but it is commenced/introduced (approved by the Authority) on 1-9-1872, Any Notification or
Ruling issued between 25-4-1872 and 1-9-1872 will Not have any effect till the commencement of Act i.e.
1-9-1872.
Provisions Applications to Making of Rules or Bye-Laws after Previous Publication

(Sec. 23)
Where by any Central Act or Regulation, a Power to make Rules or Bye-laws is Expressed to be
Given Subject to the Condition of the Rules or Bye-laws being made After Previous Publication,
then the following Provisions shall Apply, Namely:-
(l) The Authority having Power to make the Rules or Bye-Laws shall, before making them, Publish a
Draft of Proposed Rules or Bye-Laws for the information of Persons likely to be affected thereby'
(2) The Publication shall be made in such manner as that Authority deems to be Sufficient, or, if the
Condition with respect to Previous Publication so Requires, in such manner as the Government
Concerned Prescribes.
(3) There shall be Published with the Draft a Notice Specifying a Date On or After which the Draft
will be taken into Consideration.
(4) The Authority having Power to make the Ru1es or Bye-laws, and Where the Rules or Bye-laws are
to be made with the Sanction, Approval or Concurrence of Another Authority, that Authority also,
shall Consider any Objection or Suggestion which may be Received by the Authority having Power
to make the Rules or Bye-laws from any person with respect to the Draft before the date so
Specified.
(5) The Publication in the Official Gazette of a Rule or Bye-law purporting to have been made in
Exercise of a Power to make Rules or Bye-laws after Previous Publication shall be Conclusive
Proof that the Rule or Bye-law has been duly made.
In Other words, Suppose any Authority (e.g. Parliament) is going to make Law/Act, but Authority consider
that there may be Error or Anomalies or Objections (or Unacceptability) in the Law/Act to be formed. So
Authority makes a Draft of the Law and publish it and advertise to the public that draft has been published
and where can public read it. Public is invited to give suggestions and objections, After considering all
suggestions and objections, authority may amend the published Draft if they want so. After All
Amendments they passed that Law/Act and again publish it in official Gazette and draft will become the
Act/Law.

Continuation of Orders, etc, Issued under Enactments Repealed and Re-Enacted

(Sec. 24)
Where any Central Act or Regulation is, After the Commencement of this Act, Repealed and Re-enacted
With or Without Modification, then, Unless it is Otherwise Expressly Provided, Any Appointment
Notification, Order, Scheme, Rule, form or Bye-law made or Issued under the Repealed Act or Regulation,
shall, so far as it is Not Inconsistent with the Provisions re-enacted, Continue in force, and be Deemed to
have been made or issued under the Provisions so re-enacted, Unless and Until it is Superseded by any
Appointment Notification, Order, Scheme, Rule, form or Bye-law, made or-issued under the Provisions so
re-enacted and When any Central Act or Regulation which, by a Notification u/s 5 or 5A of the Scheduled
Districts Act, 1874 or any like Law, has been Extended to any Local Area, has, by a Subsequent
Notification, been Withdrawn from and Re-extended to such Area or Any part thereof the Provisions of such
Act or Regulation shall be deemed to have been Repealed and Re-enacted in such Area or part within the
meaning of this Section. Suppose, Order of Tribunal/ Court passed in year 2012 under Co. Act, 1956 that
Ram Can’t be appointed as Director of any Company for Next 10 years. Later on, Co. Act, 1956 repealed
and Companies Act, 2013 enforced. In this situation, until it is Not mentioned in New Act (2013) to cancel
the order made under earlier Act, Order under earlier Act will exist and remain effective as it is.
In Simple words, the New Rules on certain matter is Not covered under New Act enforced then that Rules
of Old Act can be followed.
Example, An Order which is passed under any Law/Act but that Law under which order has been issued is
repealed, that Order will still exist (continue). If that repealed Law is revived again then also Order under
repealed law will exist. Suppose some Order was passed under Companies Act, 1956 when that Act was
Existed, Co. Act 1956 is repealed, Order will still continue. Now that repealed Act is revived as Companies
Act, 2013, Order issued under Co. Act, 1956 will still continue.
In State of Punjab v. Harnek Singh, AIR 2002 SC 1074, It was held that Investigation Conducted by
Inspectors of Police, under the Authorization of Notification issued under Prevention of Corruption Act, of
1947 will be Proper and will Not be Quashed under New Notification taking the Above Power, till the
Aforesaid Notification is Specifically Superseded or Withdrawn or Modified under the New Notification.
Recovery of Fines (Sec. 25)

Sections 63 to 70 of the Indian Penal Code (IPC) and the Provisions of the Code of Criminal Procedure
(CPC) for the time being in force in relation to the issue and the Execution of Warrants for the Levy of Fines
shall Apply to All Fines imposed under Any Act, Regulation, Rule or Bye-Law, Unless the Act, Regulation,
Rule or Bye-law Contains an Express Provision to the Contrary.
Suppose, Income tax Deptt. Wants to take action to recover Income tax then for that recovery, All
Provisions for Criminal Procedure Code (CPC) will apply and Police protection can be taken by IT Deptt.
In Other words, if someone is unable to pay the Fine imposed by any Act in case of its Contravention then it
will Covered under the Provisions of IPC and CPC. The General Clauses Act does Not specify any process
for the Recovery of the Fine imposed.

Provisions As to Offences Punishable under Two or more Enactments (Sec. 26)

Where an act or Omission Constitutes an Offence under Two or more Enactments, then the Offender shall
be Liable to be Prosecuted and Punished under Either or Any of those Enactments, But shall Not be Liable
to be Punished Twice for the same Offence.
In Other Words, if someone commits a Crime which is Crime under 2 Laws/Acts then he should Not be
sued Twice for the same Crime. He should be punished or penalized only Once for a Crime.
Suppose, A person commits Crime which is an Offence under two different Acts/ Laws. There is provision
of imprisonment in One Law is 10 years and same 10 years imprisonment under any other Law for same
Crime, then that person Can’t be imprisoned for 20 years. He will be punished for total 10 years.
Meaning of Service by Post (Sec. 27)
Where Any Central Act or Regulation Requires any Document to be Served by Post, then unless a Different
Intention Appears (in the respective Act/Law regarding Service of Post of Notices, etc.), the Service shall
be deemed to be Effected (under the General Clauses Act) by :-
- Properly Addressing (write proper Address)
- Pre- paying (i.e. affix proper Postal Stamps, or Sender must pay to Courier, etc) and
- Posting by Registered Post.
A Letter Containing the Document and, unless the Contrary is Proved, to have been effected at the Time at
which the Letter would be Delivered in the Ordinary Course of Post.
In United Commercial Bank v. Bhim Sain Makhija, AIR 1994 Del 181 : A Notice When Required under
the Statutory Rules to be sent by ‘Registered Post Acknowledgement Due’ is instead Sent by ‘Registered
post’ Only, the Protection of Presumption regarding Serving of Notice under ‘Registered Post’ under this
Section of the Act Neither Tenable Not based upon Sound Exposition of Law.
In Jagdish Singh Vs. Nathu Singh, AIR 1992 SC 1604, it was held that where a Notice is sent to the
Landlord by Registered Post and the same is Returned by the Tenant with an endorsement of Refusal, it will
be presumed that the Notice has been served.
In Smt. Vandana Gulati Vs. Gurmeet Singh alias Mangal Singh, AIR 2013 All 69, it was held that where
Notice sent by Registered Post to person concerned at proper Address is deemed to be served upon him in
due course unless contrary is proved. Endorsement ‘Not Claimed/Not met’ is sufficient to prove deemed
Service of Notice.
Citation of Enactments (quoting something Or giving Reference of something) (Sec. 28)

References to Act or Regulation by Title or Short Title
In any Central Act or Regulation, and in any Rule, Bye-law, Instrument or Document, made under,
or with Reference to Any such Act or Regulation, Any Enactment may be Cited by Reference to the
Title or Short Title (if Any) Conferred thereon or by Reference to the Number and Year thereof, and
Any Provision in an Enactment may be Cited by Reference to the Section or Sub- section of the
Enactment in which the Provision is Contained.
Example, Sometime * is used with some words in the paragraph of any Section of the Law/Acts and
at end of the paragraph, person drafting Law will put * and write the meaning of that word there or
give some reference of that word under any Act. It is Citation.

Construction of Citation of a Portion of Another Enactment

In this Act and in any Central Act or Regulation made after the commencement of this Act, a
Description or Citation of a Portion of Another Enactment shall, unless a Different Intention
Appears, be Construed as including the Word, Section or other part mentioned or Referred to as
forming the beginning and as forming the end of the portion comprised in the description Or citation.
In Other Words, while writing the draft of any Law, sometime some words are used, the meaning of
such words is referred under any other Act e.g. if word Company is used under SEBI Act and it is
referred as Company is Company specified u/s 2(20) of the Companies Act, 2013. It is citation of
enactment.
Saving for Previous Enactment, Rules and Bye-Laws (Sec. 29)
The Provisions of this Act respecting the Construction of Acts, Regulations, Rules or Bye-laws made
After the Commencement of this Act shall Not affect the Construction of any Act, Regulation, Rule
or Bye-law made before the Commencement of this Act, Although the Act, Regulation, Rule or
Bye-law is Continued or Amended by an Act, Regulation, Rule or Bye-law made After the
Commencement of this Act.
Acts framed before GCA, 1868 (e.g. Indian Penal Code, 1860), GCA 1897 is Not applicable over
that Acts.
In Other Words, If there is amendments which are coming in the Law/Act then Old Law and its
Provisions/Rules/bye-Laws are saved and other matters is added to it (Old law) time to time.
Application of Act to Ordinances (an Authoritative Order) (Sec. 30)
In this Act the Expression 'Central Act', Wherever it occurs, Except in Section 5 and the Word 'Act'
in Clauses (9), (13), (25), (40), (43), (52), and (54) of Section 3 and in Section 25 shall be deemed to
include an Ordinance made and Promulgated (Promote or make widely known) by the President
under Article 123 of the Constitution.
In case of Emergency, where there is No session of Parliament is held then Expert Committee framed the
Ordinance. It is temporary in nature. Ordinance is to be approved by parliament within 6 months to make it
Law/ Act.
In Other Words, any Central Act/Law is passed by Parliament but parliament doesn’t sit through out the
year. It (Parliament) may sit just for 70 or 80 days during the year. Suppose Any Act is required to be
passed during the absence of the Parliament (period in which there is No proceeding continued in the
parliament) then how the Act/Law is to be passed. Parliament is not to be called. In that case, there will be
a temporarily authority which is going to make Laws and when they (Temporarily Authorities) makes Law
that Law is called Ordinance. Ordinance is generally valid for 6 months, when Parliament will come back
then that Ordinance will be approved by it. All the Provision/Sections of the General Clauses Act are Not
only applicable to the Acts but to Ordinance also.

SUMMARY of the Chapter

∎ General Clauses Act, 1897 intends to provide general definitions which shall be applicable to all Central
Acts and Regulations where there is no definition in those Acts.
∎ Every Act has a preamble which expresses the scope, object and purpose of the Act. It is the main source
for understanding the intention of lawmaker behind the Act.
∎ Financial year shall mean the year commencing on the first day of April.
∎Where legislation has not specifically mentioned to come into force on a prescribed date, it shall be
implemented on the day that it receives the assent of the President.
∎ Whenever an Act is repealed, it must be considered as if it had never existed.

∎ Where by any legislation, any act or proceeding is directed or allowed to be done or taken in any court or
office on a certain day or within a prescribed period then, if the Court or office is closed on that day, the
act or proceeding shall be considered as done or taken in due time if it is done or taken on the next day
afterwards on which the Court or office is open.
∎ In any legislation, words importing the masculine gender shall be taken to include females, and words in
singular shall include the plural and vice versa.
∎ Power to appoint includes power to appoint ex-officio.
∎ Power to appoint includes power to suspend or dismiss.
∎ A law relative to the chief or superior of an office shall apply to the deputies or subordinates lawfully
performing the duties of that office in the place of their superior.
∎ Where any legislation or regulation requires any document to be served by post, then unless a different
intention appears, the service shall be deemed to be effected by properly addressing, pre-paying, and
posting by registered post.

Multiple Choice Questions (Part -1)

1. The General Clauses Act, 1897 intends to:-
(a) Provide general Definitions.
(b) Applicable to All Central Acts and Regulations.
(c) Applicable Where there is No Definition, unless there is anything repugnant (conflicted) in the
subject Or Context.
(d) All of the Above.
2. The General Clauses Act is one of the Oldest Acts, Came into force on:
(a) 01st April, 1897 (b) 11th March, 1897
(c) 11th March, 1887 (d) 01st April, 1868
3. The Preamble (introductory part of the Law or its justification) is most important in any Legislation, it:-
(a) Provides Definitions in the Act.
(b) Expresses Scope, Object and Purpose of the Act (e.g. NI Act, 1881, Preamble says it covers Bill of
Exchange , Promissory Note and Cheque).
(c) Provides summary of the Entire Act.
(d) None of the above.
4. As per a Rule of an Educational Institution, Every student may come on weekends for Extra Classes but
Every student shall appear on a weekly Test Conducted in the Institute, which means: -
(a) Attending weekend classes is Optional but appearing in weekly Test is Compulsory
(b) Attending weekend classes is compulsory but appearing in weekly test is optional
(c) Attending weekend classes and appearing in weekly Test, both are compulsory for students
(d) Attending weekend classes and appearing in weekly test both are optional for students.
5. Which of the following is Not an Immovable Property:

(a) Land (b) Building
(c) Timber (d) Machinery permanently attached to the Land
Answer to MCQs
1. (d) 2. (b) 3. (b) 4. (a) 5. (c)

Some Multiple Choice Questions (Part -2)

Que. 1 Section _______ of the Act Defines Certain Words and Expressions.
(a) 2 (b) 3 (c) 4 (d) 5
Que. 2 Where an Act of Parliament does Not Expressly Specify any Particular day as to the Day of
Coming into Operation of Such Act, then it shall come into Operation on the Day on which
______.
(a) It Receives the Assent of the President

(b) It Receives the Assets of the Governor-General
(c) It is Notified in the Official Gazette
(d) None of these
Que. 3 In any Central Act or Regulation made after the Commencement of this Act, it shall be sufficient,
for the Purpose of _____ the First in a Series of Days or any other Period of Time, to Use the
Word ‘From’ and for the Purpose of _____ the Last in a Series of Days any other Period of Time,
to use the Word ‘To’.
(a) Including ; Excluding (b) Excluding ; Including

(c) Including ; Including (d) Excluding ; Excluding
Que. 4 Where, by any Central Act or Regulation made after the Commencement of this Act, any or
Proceeding is Directed or Allowed to be done or Taken in any Court or Office on a Certain Day
or within a Prescribed Period, then, if the Court or Office is Closed on that Day or the Last Day
of the Prescribed Period, the Act shall be Considered as Done or taken in Due Time if it is Done
or Taken on ______.
(a) The Next Day Afterwards on which the Court or Office is Open
(b) The Next Day (c) Such Day as the Court Directs
(d) None of these
Que. 5 In the Measurement of any Distance, for the Purpose of any Central Act or Regulation made after
the Commencement of this Act, that Distance shall, unless a Different Intention Appears, be
Measured ______.
(a) As per the Map Approved by the Govt. (b) As per the Map Approved by the Court
(c) In a Straight Line on a Horizontal Plane (d) None of these
Que. 6 Where, by any Enactment Now in Force or Hereafter to be in Force, any Duty of Customs or
Excise, or in the Nature thereof, is Leviable on any given Quantity, by Weight, Measure or
Value of any Goods or Merchandise, then a Duty is Leviable According to the Same Rate on
any _____.
(a) Greater Quantity (b) Lesser Quantity
(c) Either (a) or (b) (d) None of these

Que. 7 Statement (1) : In all Central Acts and Regulations, any Words which Denote the Masculine
Gender shall be Taken to Include Females, and Vice Versa.
Statement (2) : In all Central Acts and Regulations, Words in the Singular shall Include the
Plural, but not Vice Versa.
(a) Only Statement (1) is Correct (b) Only Statement (2) is Correct
(c) Both the Statement are Correct (d) None of these Statement is Correct
Que. 8 Where a Power to Appoint any Person to fill any Office or Execute any Function is Conferred,
then, such Appointment may be made________.
(a) By Name (b) By Virtue of Office
(c) Either (a) or (b) (d) None of these
Que. 9 Where, by any Central Act or Regulation, a Power to Issue any Notification, order, Scheme,
Rule, form, or Bye-Law is Conferred, then Expressions used in the Notification, Order, Scheme,
Rule, Form or Bye-Law, shall, unless there is anything Repugnant in the Subject or Context,
have the Same Respective meaning as in ______.
(a) The General Clauses Act, 1897 (b) The Act or Regulation Conferring the Power
(c) The Former Enactment (d) None of these
Que. 10 Where an Act or Omission Constitutes an Offence under Two or More Enactments, then the
Offender shall be Liable to be Prosecuted and Punished______.
(a) Under Either or any of those Enactments (b) Twice for the same Offence
(c) Either (a) or (b), as per the Discretion of the Court (d) None of these
Que. 11 Where any Central Act or Regulation made after the Commencement of this Act Authorizes or
Requires any Documents to be served by Post, then, Unless a different Intention Appears, the
Service shall be Deemed to have been Effected ______.
(a) At the Time at which the Letter Would be Delivered in the Ordinary Course of Post
(b) After 24 Hours of Posting of Letter Containing such Document
(c) After 48 Hours of Posting of Letter Containing such Document
(d) None of these
Que. 12 The Object of the General Clauses Act, 1897 is _______.

(a) To Shorten the Language of the Central Acts and Regulations
(b) To Resolve any Conflict which may Arise between 2 or more Central Acts or
Regulations
(c) To give a Uniform meaning to this Words in all the Central Acts and Regulations
(d) All of these
Ans : (MCQ, Part-2 ).

1 (b) 2 (a) 3 (b) 4 (a) 5 (c) 6 (c)
Sec. 3 Sec. 5 Sec. 9 Sec. 10 Sec. 11 Sec. 12
7 (d) 8 (c) 9 (b) 10 (a) 11 (a) 12 (d)
Sec. 13 Sec. 15 Sec. 20 Sec. 26 Sec. 27

D Descriptive Questions related to the Chapter
Question 1 What is “Financial Year” under the General Clauses Act, 1897?
Answer According to Section 3(21) of the General Clauses Act, 1897, ‘Financial Year’ shall mean the
year commencing on the first day of April. The term year has been defined under Section 3(66) as a year
reckoned according to the British calendar. Thus as per General Clauses Act, Year means calendar year
which starts from January to December. Hence, in view of the both above definitions, it can be concluded
that Financial Year is a year which starts from first day of April to the end of March
Question 2 What is “Immovable Property” under the General Clauses Act, 1897?
Answer According to Section 3(26) of the General Clauses Act, 1897, ‘Immovable Property’ shall
include: (i) Land, (ii) Benefits to arise out of land, and (iii) Things attached to the earth, or permanently
fastened to anything attached to the earth. For example, trees are immovable property because trees are
benefits arise out of the land and attached to the earth. However, timber is not immovable property as the
same are not permanently attached to the earth. In the same manner, buildings are immovable property.
Question 3
As per the provisions of the Companies Act, 2013, a whole time Key Managerial Personnel (KMP) shall not
hold office in more than one company except its subsidiary company at the same time. Referring to the
Section 13 of the General Clauses Act, 1897, examine whether a whole time KMP can be appointed in more
than one subsidiary companies?
Answer Section 203(3) of the Companies Act, 2013 provides that whole time key managerial
personnel shall not hold office in more than one company except in its subsidiary company at the same time.
With respect to the issue that whether a whole time KMP of holding company be appointed in more than one
subsidiary companies or can be appointed in only one subsidiary company. Subsidiary means Subsidiaries.
It can be noted that Section 13 of General Clauses Act, 1897 provides that the word ‘singular’ shall include
the ‘plural’, unless there is anything repugnant to the subject or the context. Thus, a whole time key
managerial personnel may hold office in more than one subsidiary company as per the present law.
Question 4 A Notice when required under the Statutory rules to be sent by “Registered Post
acknowledgment Due” is instead sent by “Registered Post” Only. Whether the protection of presumption
regarding serving of Notice by “Registered Post” under the General Clauses Act is Tenable? Referring to the
provisions of the General Clauses Act, 1897, examine the validity of such notice in this case.
Answer: As per the provisions of Section 27 of the General Clauses Act, 1897, where any legislation
or regulation requires any document to be served by Post, then unless a different intention appears, the
Service shall be deemed to be effected by: (i) properly addressing, (ii) pre-paying, and (iii) posting by
Registered Post. A Letter containing the Document to have been effected at the time at which the Letter
would be delivered in the Ordinary Course of Post. Therefore, in view of the Above provision, since, the
statutory Rules itself provides about the Service of Notice that a Notice when required under said Statutory
Rules to be sent by ‘Registered Post Acknowledgement Due’, then, if Notice was sent by ‘Registered Post’
Only, it will Not be the compliance of said Rules. However, if such provision was Not provided by such
statutory Rules, then service of Notice if by Registered Post Only shall be deemed to be Effected.
Furthermore, in similar Case of In United Commercial Bank v. Bhim Sain Makhija, AIR 1994 Del 181 : A
Notice when required under the statutory Rules to be sent by ‘Registered Post Acknowledgement due’ is
instead sent by ‘Registered Post’ Only, the protection of Presumption regarding Serving of Notice under
‘Registered Post’ under this Section of the Act Neither Tenable Not based upon sound Exposition of Law.
So Its Not a Valid Notice when it is expressly Cleared under respective Law that it should be sent by
Registered post AD.

Question 5
X Owned a Land with fifty tamarind trees. He sold his land and the timber (obtained after cutting
the fifty trees) to Y. X wants to know whether the sale of timber tantamount to sale of immovable property.
Advise him with reference to provisions of General Clauses Act, 1897.
Answer:
“Immovable Property” [Sec. 3(26) of the General Clauses Act, 1897]:-
‘Immovable Property’ shall include:-

(i) Land,
(ii) Benefits to arise out of land, and
(iii) Things attached to the earth, or
(iv) Permanently fastened to anything attached to the earth.
It is an inclusive definition. It contains four elements: land, benefits to arise out of land, things attached to
the earth and things permanently fastened to anything attached to the earth. Where, in any enactment, the
definition of immovable property is in the negative and not exhaustive, the definition as given in the
General Clauses Act will apply to the expression given in that enactment.
In the instant case, X sold Land along with timber (obtained after cutting trees) of fifty tamarind trees of his
land. According to the above definition, Land is immovable property; however, timber cannot be immovable
property since the same are not attached to the earth.
Question 6
What is the meaning of service by post as per provisions of the General Clauses Act, 1897?
Answer:
“Meaning of Service by post” [Section 27 of the General Clauses Act, 1897]:-
Where any legislation or regulation requires any document to be served by post, then unless a
different intention appears, the service shall be deemed to be effected by:-
(i) properly addressing
(ii) pre-paying, and
(iii) posting by registered post.
A letter containing the document to have been effected at the time at which the letter would be delivered in
the ordinary course of post.
Question 7
‘Repeal’ of provision is different from ‘deletion’ of provision. Explain as per the General Clauses
Act, 1897.
Answer: In Navrangpura Gam Dharmada Milkat Trust Vs. Rmtuji Ramaji, AIR 1994 Guj 75
Case, it was decided that ‘Repeal’ of provision is in distinction from ‘Deletion’ of Provision. ‘Repeal’
ordinarily brings about complete obliteration (abolition) of the provision as if it never existed, thereby
affecting all incoherent rights and all causes of action related to the ‘repealed’ provision while ‘deletion’
ordinarily takes effect from the date of legislature affecting the said deletion, never to effect total effecting
or wiping out of the provision as if it never existed.

Question 8
Komal Ltd. declares a dividend for its shareholders in its AGM held on 27th September, 2019.
Referring to provisions of the General Clauses Act, 1897 and Companies Act, 2013, advice:
(i) The dates during which Komal Ltd. is required to pay the dividend?
(ii) The dates during which Komal Ltd. is required to transfer the unpaid or unclaimed dividend to
unpaid dividend account?
Answer:
As per Section 9 of the General Clauses Act, 1897, for computation of time, the Section states that in any
legislation or regulation, it shall be sufficient, for the purpose of excluding the first in a series of days or any
other period of time to use the word “from” and for the purpose of including the last in a series of days
or any other period of time, to use the word “to”.
(i) Payment of Dividend: In the given instance, Komal Ltd. declares Dividend for its shareholder in its
Annual General Meeting held on 27/09/2019. Under the provisions of Section 127 of the Companies Act,
2013, a company is required to pay declared dividend within 30 days from the date of declaration, i.e. from
28/09/2019 to 27/10/2019. In this series of 30 days, 27/09/2019 will be excluded and last 30 th day, i.e.
27/10/2019 will be included. Accordingly, Komal Ltd. will be required to pay dividend within 28/09/2019
and 27/10/2019 (both days inclusive).
(ii) Transfer of Unpaid Or Unclaimed Divided: As per the Provisions of Section 124 of the Companies
Act, 2013, where a Dividend has been declared by a company but has not been paid or claimed within 30
days from the date of the declaration, to any shareholder entitled to the payment of the dividend, the
company shall, within 7 days from the date of expiry of the said period of 30 days, transfer the total amount
of dividend which remains unpaid or unclaimed to a special account to be opened by the company in that
behalf in any scheduled bank to be called the “Unpaid Dividend Account” (UDA). Therefore, Komal Ltd.
shall transfer the unpaid/unclaimed dividend to UDA within the period of 28 th October, 2019 to 3 rd
November, 2019 (both days inclusive).
Question 9
The Companies Act, 2013 provides that the amount of Dividend remained Unpaid/Unclaimed on
Expiry of 30 Days from the date of declaration of Dividend shall be transferred to unpaid dividend account
within 7 days from the date of expiry of such period of 30 days. If the expiry date of such 30 days is
30.10.2019, Decide the last date on or before which the unpaid/unclaimed dividend amount shall be
required to be transferred to a separate bank account in the light of the relevant provisions of the General
Clauses Act, 1897?
Answer:
Section 9 of the General Clauses Act, 1897 provides that, for computation of time, in any legislation or
regulation, it shall be sufficient, for the purpose of Excluding the first in a series of days or any other period
of time to use the word “from” and for the purpose of including the last in a series of days or any other
period of time, to use the word “to”.
As per the facts of the question the company shall transfer the unpaid/unclaimed dividend to unpaid
dividend account within the period of 7 days. 30th October 2019 will be excluded and 6th November 2019
shall be included, i.e. 31st October, 2019 to 6th November, 2019 (both Days inclusive).

Question 10
Referring to the provisions of the General Clauses Act, 1897, find out the day/ date on which the
following Act/Regulation comes into force. Give Reasons also,
(1) An Act of Parliament which has not specifically mentioned a particular date.
(2) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Fifth
Amendment) Regulations, 2015 was issued by SEBI vide Notification dated 14 th August, 2015 with
effect from 1 st January, 2016.
Answer:
(1) According to section 5 of the General Clauses Act, 1897, where any Central Act has not specifically
mentioned a particular date to come into force, it shall be implemented on the day on which it
receives the assent of the President in case of an Act of Parliament
(2) If any specific date of enforcement is prescribed in the Official Gazette, the Act shall come into
enforcement from such date.
Thus, in the given question, the SEBI (Issue of Capital and Disclosure Requirements) (Fifth Amendment)
Regulations, 2015 shall come into enforcement on 1 st January, 2016 rather than the date of its notification
in the gazette.

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Sumit Goyal The General Clauses Act, 1897

The General Clauses Act, 1897

Object / Purpose of the Act

The Applicability of the General Clauses Act

Goyal Institute of Commerce & Science 12.1 98960-70560, 92151-70560

Process/Sequence of using the meaning of any Word

SOME BASIC UNDERSTANDING OF LEGISLATION

Example 1, Preamble of The Sale of Goods Act, 1930 :-

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Definitions of any Act:

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“Shall” and “May” :

May is Directory and Shall is Mandatory

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Definitions (Sec. 3 of the General Clauses Act, 1897)

Central Act Sec. 3(7)

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Central Government Sec. 3(8)

(iii) in relation to the Administration of a Union Territory (e.g. Chandigarh, Andeman,

Commencement (when the Act will come in operation) Sec. 3(13)]

Document Sec. 3(18) (same as Interpretation of Statute)

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Enactment Passing Something Sec. 3(19) (Enactment means Act or Law)

Financial Year Sec. 3(21)

Good Faith Sec. 3(22)

Government Or the Government Sec. 3(23)

Government Securities Sec . 3(24)

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Immovable Property Sec. 3(26)

Ans: Sale of Timber does Not amount to Sale of Immovable Property

* Benefits to arise out of Land

Imprisonment (Jail) Sec. 3(27)

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Movable Property [Sec.3(36)]

Offence [Sec.3(38)] (doing something wrong i.e. Crime)

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Application of Foregoing Definition to Previous Enactments (Sec. 4)

Effective Date of Certain Words and Expressions

Effective Date of Certain Other Words and Expressions

Application of Certain Definitions to All Indian Laws (Sec. 4A)

Applicability of Certain Words and Expressions to All Indian Laws

Construction of Words referring to Revenues of CG / SG

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GENERAL RULES OF CONSTRUCTION

Coming into Operation of Enactments (Sec. 5)

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Repeal of Act Making Textual Amendment in Act Or Regulation (Sec. 6A)

Revival (Coming back) of Repealed Enactments (Sec. 7)

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Construction of References to Repealed Enactments (Sec. 8)

Commencement and Termination of Time (Sec. 9)

Computation of Time (Sec. 10)

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Measurement of Distance (Sec. 11)

Duty to be Taken Pro rata in Enactment (Sec. 12)

Gender and Number (Sec. 13)

Interpretation of Singular Words

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Powers Conferred to be Exercisable from Time to Time (Sec. 14)

Power to Appoint to Include Power to Suspend or Dismiss (Sec. 16)