Chapter 1 The General Clauses Act, 1897

INTRODUCTION

Why we study General Clauses Act?

The General Clauses Act, 1897 (Act) was enacted on 11th March, 1897 to
consolidate and extend the General Clauses Act, 1868 and 1887.
The General Clauses Act, 1897 contains ‘definitions’ of certain terms and general
principles of interpretation. The general definitions provided are applicable to all
Central Acts and Regulations in the absence of definition of a particular word
in any Central Act or Regulation, unless there is anything repugnant in the subject or
context.
The General Clauses Act, 1897 also comes for a rescue in the absence of clear
definition in the specific enactments and where there is a conflict between the
pre-constitutional laws and post-constitutional laws. The Act gives a clear
suggestion for the conflicting provisions and differentiates the legislation
according to the commencement and enforcement to avoid uncertainty.

Example 1: 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, A.I.R. 1950 F.C. 140)

OBJECT, PURPOSE AND IMPORTANCE OF THE GENERAL CLAUSES ACT

The objects of the Act are several, namely:
(1) to shorten the language of Central Acts;

(2) to provide, as far as possible, for uniformity of expression in Central Acts, by

giving definitions of a series of terms in common use;
(3) To state explicitly certain convenient rules for the construction and
interpretation of Central Acts;
(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.

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 The General Clauses Act, thus, makes provisions as to construction of General Acts and
other laws of all- India application. Its importance, therefore, in point of the number of
enactments to which it applies, is obvious.

The purpose of the Act has been stated by the Supreme Court in the case of The
Chief Inspector of Mines v. Karam Chand Thapar. It stated that the purpose
of this Act is to place in one single Statute different provisions as regards
interpretation of words and legal principles which would otherwise have to be
specified separately in many different Acts and regulations. The purpose of the
Act is to avoid superfluity of language in statutes wherever it is possible to do so.

So, whatever General Clauses Act says whether as regards to the meaning of words
or as regards legal principles, has to be read in every statute to which it applies.
Example 2: 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.

Section 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 Section 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) 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.

APPLICATION OF THE GENERAL CLAUSES ACT

The Act does not define any “territorial extent” clause. Its application is
primarily with reference to all Central legislation and also to rules and
regulations made under a Central Act. It is in a sense a part of every Central Acts or
Regulations. If a Central Act is extended to any territory, the General Clauses Act
would also deem to be applicable in that territory and would apply in the
construction of that Central Act. The Central Acts to which this Act apply are: —
(a) Acts of the Indian Parliament (Central Act) along with the rules and
regulations made under the Central Act;
 (b) Acts of the Dominion Legislature passed between the 15th August, 1947 and
the 26th January, 1950;

(c) Acts passed before the commencement of the Constitution by the

Governor-General in Council or the Governor-General acting in a legislative
capacity. The Act does not define any “territorial extent” clause.

Article 367 of the Constitution of India authorises use of the General Clauses Act
for the interpretation of constitution. Article 367 states that:
“Unless the context otherwise requires, the General Clauses Act, 1897, shall, subject
to any adaptations and modifications that may be made therein under Article
372, apply for the interpretation of this Constitution as it applies for the
interpretation of an Act of the Legislature of the Dominion of India".

The provisions of the General Clauses Act, 1897 are mere rules of interpretation
and it applies automatically in each and every case. It all depends on the facts and
circumstances of each case.

In many countries, Legislatures similar to the General Clauses Act are called
Interpretation Acts. But, as the provisions of the General Clauses Act (whether
relating to definitions and meanings of words and terms or dealing with
construction and interpretation) are, so far as may be necessary, common to every
Central Act, the title “General Clauses Act” is not less appropriate than the title
“Interpretation Act”. The Supreme Court had observed in the case of Chief Inspector of
Mines v. K. C. Thapar “Whatever the General Clauses Act says, whether as regards
the meanings of words or as regards legal principles, has to be read into every
Act to which it applies.”

The scope and effect of each section depends upon the text of the particular
section.

Example 3: Section 3 of the General Clauses Act, which deals with the
definitional clause, applies to the General Clauses Act itself and to all Central Acts
and Regulations made after the commencement of the General Clauses Act in
1897.
Similarly, section 4 of the General Clauses Act which deals with the application of
foregoing definitions to previous enactment, applies to Central Acts and after January
3, 1868 and to regulations made after January 14, 1887.

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So, there is a difference in the applicability of each section as regards the
statutes to which it applies.

The language of each section of the General Clauses Act has to be referred to ascertain
to which class of instruments or enactment it applies. In certain cases, even if no
section of the General Clauses Act applies to particular case, the court applies the
general principles of the General Clauses Act.

It may also be noted that the Act also serves as a model for State General Clauses
Act. It is evident that the State General Clauses Acts should conform to the
General Clauses Act of 1897, for, otherwise, divergent rules of construction and
interpretation would apply and. as a result, great confusion might ensue.

Before delving into the saddle of the provisions under General Clauses Act, 1897
let’s have some basic understanding of law.

SOME BASIC UNDERSTANDING OF LEGISLATION

“Preamble”: 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.
Whenever there is ambiguity in understanding any provision of Act, Preamble is
accepted as an aid to construction of the Act.
The Preamble of a Statute is a part of the enactment and can legitimately be
used for construing it. However, the Preamble does not over-ride the plain
provisions of the Act but if the wording of the statute gives rise to doubts as to its
proper construction, for example, where the words or phrase has more than one
meaning and a doubt arises as to which of the two meanings is intended in the
Act, the Preamble can and ought to be referred to in order to arrive at the proper
construction.

In short, the Preamble to an Act discloses the primary intention of the legislature but
can only be brought in as an aid to construction if the language of the statute is not
clear. However, it cannot override the provisions of the enactment.
Example 4: Preamble of the Negotiable Instruments Act, 1881 states - “An Act to
define and amend the law relating to Promissory Notes, Bills of Exchange and
Cheque.”
Example 5: Preamble of the Companies Act, 2013 states – “An Act to consolidate
and amend the law relating to companies.”
 In order to understand Preamble of the Act, it is important to know the ‘Act’. Act is
a bill passed by both the houses of Parliament and assented to by the President.
Whereas ‘Bill’ is a draft of a legislative proposal put in the proper form which, when
passed by both houses of Parliament and assented to by the President becomes an
Act. On getting assent from President, an Act is notified on the Official Gazettes of
India.

“Definitions”: Every Act contains definition part for the purpose

of that particular Act and that definition part are usually
mentioned in the Section 2 of that Act but in some
other Acts, it is also mentioned in Section 3 or in other initial sections. Hence, definitions
are defined in the Act itself. The object of the definition clause is to avoid the
necessity of frequent repetitions in describing all the subject matter to which the
word or expression so defined is intended to apply.
However, if there may be words which are not defined in the definitions of
the Act, the meaning of such words may be taken from General Clauses Act,
1897.
Words are defined in the respective Act. Sometimes, definitions are referred in
other statutes. If words are not defined in the respective Acts, such words are to be
taken from General Clauses Act.
Example 6: The word ‘Company’ used in the Companies Act, 2013, is defined in section
2(20) of the respective Act.

Example 7: Word ‘Security’ used in the Companies Act, 2013, is not defined in the
respective Act. It has been defined under section 2(h) of the Securities Contracts
(Regulations) Act, 1956. This word is equivalently applicable on the Companies Act,
2013. Similarly, the word ‘Digital signature’ used in the Companies Act, shall be
construed as per the section 2(1) (p) of the Information Technology Act, 2000.

Clause 95 of Section 2 of the Companies Act, 2013 clearly says that -

Words and expressions used and not defined in this Act but defined in the
Securities Contracts (Regulation) Act, 1956 or the Securities and Exchange Board of
India Act, 1992 or the Depositories Act, 1996 shall have the meanings respectively
assigned to them in those Acts.
Example 8: The word ‘Affidavit’ used in section 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.

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 “Means” and/or “include”: Some definitions use the
word “means”. Such definitions are exhaustive
definitions and exactly define the term.

Example 9: Definition of ‘Company’ as given in section 2(20) of the Companies

Act, 2013. It states, “Company” means a company incorporated under this Act or
under any previous company law.
Example 10: Section 2(34) of the Companies Act, 2013 defines the term director
as “director” means a director appointed to the Board of a company.

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. 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.
Example 11: Word ‘debenture’ defined in section 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 12: “Body Corporate” or “Corporation” includes a company incorporated
outside India. [Section 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.
We may also find a word being defined as ‘means and includes’ such and such,
here again the definition would be exhaustive.
Example 13: Share defined under section 2(84) of the Companies Act, 2013,
states that “Share” means a share in the share capital of a company and includes
stock.

On the other hand, if the word is defined ‘to apply to and include’, the definition is
understood as extensive.
“Shall” and “May”: The word ‘shall’ is used to raise a
presumption of something which is mandatory or imperative
while the word ‘may’ is used to connote something which is
not mandatory but is only directory or enabling. However, sometimes the words
 “may and shall” can be interpreted interchangeably depending on the intention of
the legislator.

Example 14: Section 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 section 3 for its
formation.
Example 15: Section 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 authorised by the Board in this behalf.

Usage of the ‘may’ shall be read as ‘may’.

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. v. Burhanpur Tapti Mill, AIR, 1964 SC1687).

In Sainik Motors v. State of Rajastan J. Hidyatullah observed “the word Shall is ordinarily
mandatory but it is sometimes not so interpreted if the context or the intention
otherwise demands.

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. You will read the following concepts in detail in the chapter of
‘Interpretation of Statutes’.

PRELIMINARY [SECTION 1]
“Short title” [Section 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 its own
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.
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Note: Section 2 of the General Clauses Act, 1897 has been repealed.

DEFINITIONS [SECTION 3]

Three sections of the General Clauses Act, i.e., section 3 (Definitions), 4 (application
of foregoing definitions to previous enactment) and 4A (Application of certain
definitions to Indian laws), contain general definitions.

Here in this chapter, we shall be discussing some of the relevant definitions or

terms which are by and large seen in the Acts.
Section 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 or there is something repugnant in the
subject or context. Section 3 seeks to define 67 phrases and terms commonly used
in enactments and are intended to serve as a dictionary for the phrases.

Bartley in his commentary on the General Clauses Act, 1897 has pointed out that a
definition may be explanatory, restrictive or extensive.
Section 3 reads as – “In this Act, and in all Central Acts and Regulations made after the
commencement of this Act, unless there is anything repugnant in the subject or context,-
1. “Act” [Section 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.

2. “Affidavit” [Section 3(3)]: ‘Affidavit’ shall include affirmation and declaration

in the case of persons by law allowed to affirm or declare instead of
swearing.
There are two important points derived from the above definition:
 1. Affirmation and declaration,

2. In case of persons allowed affirming or declaring instead of swearing.

The above definition is inclusive in nature. It states that Affidavit shall

include affirmation and declarations. This definition does not define affidavit.
However, we can understand this term in general parlance. Affidavit is a
written statement confirmed by oath or affirmation for use as evidence in
Court or before any authority.

3. “Central Act” [Section 3(7)]: ‘Central Act’ shall mean an Act of Parliament, and
shall include-

(a) An Act of the Dominion Legislature or of the

Indian Legislature passed before the commencement of the
Constitution*, and

(b) An Act made before such commencement by the Governor General

in Council or the Governor General, acting in a legislative capacity;
*The date of the commencement of the Constitution is 26th January, 1950.
4. “Central Government” [Section 3(8)]:
‘Central Government’ shall-

(a) In relation to anything done before

the commencement of the Constitution, mean the Governor General in
Council, as the case may be; and shall include,-
(i) In relation to functions entrusted under sub-section (1) of the
section 124 of the Government of India Act, 1935, to the
Government of a Province, the Principal Government acting
within the scope of the authority given to it under that sub- section;
and
(ii) In relation to the administration of a Chief Commissioner’s
Province, the Chief Commissioner acting within the scope of the
authority given to him under sub-section (3) of section 94 of the said
Act; and

(b) In relation to anything done or to be done after the commencement of

the constitution of the Constitution, mean the President; and shall
include;-
(i) In relation to function entrusted under clause (1) of the article

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 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 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, the
administrator thereof acting within the scope of the authority given
to him under article 239 of the Constitution;

*The date of commencement of the Constitution (Seventh Amendment)

Act, 1956 is 01st January, 1956.

The new Constitution of India, which came into force on 26 January 1950,
made India a sovereign democratic republic. The new republic was also
declared to be a "Union of States". Between 1947 and 1950 the
territories of the princely states were politically integrated into the Indian
Union. The constitution of 1950 distinguished between three main
types of states and a class of territories:

Part A states, which were the former governors' provinces of British India,
were ruled by a Governor appointed by the President and an elected state
legislature. The nine Part A states were Assam, Bihar, Bombay, Madhya
Pradesh (formerly Central Provinces and Berar), Madras, Orissa, Punjab
(formerly East Punjab), Uttar Pradesh (formerly the United Provinces), and
West Bengal.

Part B states, which were former princely states or groups of princely states,
governed by a Rajpramukh, who was usually the ruler of a constituent
state, and an elected legislature. The Rajpramukh was appointed by the
President of India. The eight Part B states were Hyderabad, Jammu and
Kashmir, Madhya Bharat, Mysore, Patiala and East Punjab States Union
(PEPSU), Rajasthan, Saurashtra, and Travancore-Cochin.

Part C states included both the former chief commissioners' provinces and
some princely states, and each was governed by a chief commissioner
appointed by the President of India. The ten Part C states were Ajmer,
 Bhopal, Bilaspur, Coorg, Delhi, Himachal Pradesh, Cutch, Manipur, Tripura,
and Vindhya Pradesh.

The sole Part D territory was the Andaman and Nicobar Islands, which were
administered by a Lieutenant Governor appointed by the Central
Government.
5. “Commencement” [Section 3(13)]:
‘Commencement’ used with reference to an Act
or Regulation, shall mean the day on
which the Act or Regulation comes into force;

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.

A Law cannot be said 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. The theory of a statute being “in
operation in a constitutional sense” though it is not in fact in operation has no
validity. [State of Orissa Vs. Chandrasekhar Singh Bhoi, Air 1970 SC 398]

6. “Document” [Section 3(18)]: ‘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.

Thus, the term “Document” includes any substance upon which any matter is
written or expressed by means of letters or figures for recording that matter.
For example, book, file, painting, inscription and even computer files are all
documents. However, it does not include Indian currency notes.

7. “Enactment” [Section 2(19)]: ‘Enactment’ shall

include a Regulation (as hereinafter defined) and
any Regulation of 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.
Again, since “enactment” is defined to include also any provision of an Act, section

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 6 (Effect of repeal) would apply to a case where not only the entire Act is
repealed, but also where any provision of an Act is repealed. [State of Punjab Sukh
Deo Sarup Gupta A.LR. 1970 SC 1661, 1942, para 3, affirming
A.I.R. 1965 Punj. 399 and Godhra Electricity Co. v. Somalal, A.I.R. 1967 Guj.
772, 776, para 6.]
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.
8. “Financial Year” [Section 3(21)]: 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.
Difference between Financial Year and Calendar Year: Financial year starts
from first day of April but Calendar Year starts from first day of January.

Commencing on
Financial Year The year
the first day of
April

9. “Good Faith” [Section 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;(only need to mention in answer)
The question of good faith under the General Clauses Act, 1897 is one of
fact. It is to determine with reference to the facts and circumstances of each case.
Thus, anything done with due care and attention, which is not malafide is
presumed to have been done in good faith. For eg: 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. This definition may be applied only
if there is nothing repugnant in subject or context.
 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.

10. “Government” [Section 3(23)]: ‘Government’ or ‘the Government’ shall include

both the Central Government and State Government.
Hence, wherever, the word ‘Government’ is used, it will include Central
Government and State Government both.
The object of this definition is to make it clear that the word ‘Government’,
frequently used as a convenient abbreviation, may be construed according to
the context in either of the two senses indicated. Government generally
connotes three wings, the Legislature, the Executive and the Judiciary; but
in a narrow sense it is used to connote the Executive only. Meaning to be
assigned to that expression, therefore, depends on the context in which it is used.

11. “Government Securities” [Section 3(24)]:

‘Government securities’ shall mean securities
of the Central Government or of any State
Government, but in any Act or Regulation
made before the
commencement of the Constitution shall not include securities of the
Government of any Part B state.

By virtue of section 4A, this definition applies to all Indian laws.

12. “Immovable Property” [Section 3(26)]:

‘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

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 inclusive definition.

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.

Example 16: In Shantabai v. State of Bombay, the Supreme Court pointed

out that trees must be regarded as immovable property because they are
attached to or rooted in the earth.

An agreement to convey forest produce like tendu leaves, timber, bamboos etc.,
the soil for making bricks, the right to build on and occupy the land for business
purposes and the right to grow new trees and to get leaves from trees that grow
in further are all included in the term immovable property.
Example 17: 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.

13. “Imprisonment” [Section 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 labor 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.
14. “Indian law” [Section 3(29)] : ‘Indian law’ shall mean any Act,
Ordinance,
Regulation, rule, order, bye law 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
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;
15. “Month” [Section 3(35)]: ‘Month’ shall mean a month
reckoned according to the British calendar;

16. “Movable Property” [Section 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.
17. “Oath” [Section 3(37)]: ‘Oath’ shall include affirmation and
declaration in the case of persons by law allowed to affirm
or declare instead of swearing.
18. “Offence” [Section 3(38)]: ‘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.
19. “Official Gazette” [Section 3(39)]: ‘Official Gazette’ or ‘Gazette’ shall
mean:
(i) The Gazette of India, or
(ii) 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.

20. “Person” [Section 3(42)]: “Person” shall include:

(i) any company, or
(ii) association, or

(iii) body of individuals, whether incorporated or not

Eg. Trust, H.U.F, IDOL, Trade Union

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21. “Registered” [Section 3(49)]: ‘Registered’ used
with reference to a document, shall mean
registered in India under the law for the time
being force for the registration of documents.

22. “Rule” [Section 3(51)]: ‘Rule’ shall mean a rule made in exercise of a
power conferred by any enactment, and shall include a Regulation made
as a rule under any enactment;

23. “Schedule” [Section 3(52)]: ‘Schedule’ shall mean

a schedule to the Act or Regulation in which the
word occurs;

24. “Section” [Section 3(54)]: ‘Section’ shall mean a section of the Act or
Regulation in which the word occurs;
25. “Sub-section” [Section 3(61)]: ‘Sub-section’ shall
mean a sub-section of the section in which the word
occurs;

26. “Swear” [Section 3(62)]: “Swear”, with its grammatical variations and cognate
expressions, shall include affirming 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.

27. “Writing” [Section 3(65)]: Expressions referring to ‘writing’

shall be construed as including references to printing,
lithography, photography and other modes of
representing or reproducing words in a visible forms.

28. “Year” [Section 3(66)]: ‘Year’ shall mean a year reckoned according to the
British calendar.

Question 1 SUGGESTED QUESTION / NOV- 19/ 3 MARKS

Define the term "Affidavit" under the General Clauses Act, 1897.
ANSWER
“Affidavit” [Section 3(3) of the General Clauses Act, 1897]: ‘Affidavit’ shall include
affirmation and declaration in the case of persons by law allowed to affirm or declare
instead of swearing.
 There are two important points derived from the above definition:

1. Affirmation and declaration,

2. In case of persons allowed affirming or declaring instead of swearing.

The above definition is inclusive in nature. It states that Affidavit shall include affirmation
and declarations. This definition does not define affidavit. However, we can understand
this term in general parlance. Affidavit is a written statement confirmed by oath or
affirmation for use as evidence in Court or before any authority.

Question 2. RTP/ MAY-21/ (Q.11-(i)

Mr. Apar and Mr. New, both aspiring Chartered Accountants have met in a
conference for CA students. Both are having an argument about the meaning of
Financial Year. They have approached you as a senior in the profession to guide
them about the meaning of Financial Year as per the provisions of the General
Clauses Act, 1872. Also, brief them about the difference between a calendar year
and financial year.
Answer
Financial Year: 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.
Difference between Financial Year and Calendar Year: Financial year starts from
first day of April but Calendar Year starts from first day of January.

Question 3 SUGGESTED QUESTION /JAN- 21/(Q.No.5D) 3 MARKS

"The act done negligently shall be deemed to be done in good faith." Comment
with the help of the provisions of the General Clauses Act, 1897.
ANSWER
Good Faith

In general, anything done with due care and attention, which is not malafide is
presumed to have been done in good faith.

But, according to section 3(22) of the General Clauses Act, 1897, 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.

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 17

The question of good faith under the General Clauses Act is one of fact. It is to determine
with reference to the circumstances of each case.

It is therefore understood that the General Clauses Act, 1897 considers the honesty in
doing the Act as a primary test to constitute the thing done in good faith and therefore
the act done honestly but with negligence may also be termed as done in good faith as
per the General Clauses Act, 1897.
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 there the definition given in that particular
enactment has to be followed. This definition may be applied only if there is nothing
repugnant in subject or context, and if that is so, the definition is not applicable.
Question 4. SUGGESTED QUESTION / NOV- 20/(Q. 3B –(i) 2 MARKS)
Mrs. K went to a Jewellary shop to purchase diamond ornaments. The owners of
jewellary shop are notorious and indulging in smuggling activities. Mrs. K
purchased diamond ornaments honestly without making proper enquiries. Was the
purchase made in Good faith as per the provisions of the General Clauses Act, 1897
so as to convey good title?
Answer
In the instant case, the purchase of diamond ornaments by Mrs. K from a Jewellary Shop,
the owners of which are notorious and indulged in smuggling activities, madein good
faith, will not convey good title.
As per section 3 (22) of the General Clauses Act, 1897, 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.
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 Indian Contract
Act, 1872 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.
Question 5.

Income Tax Act, 1961 provides that the gratuity paid by the government to its
employees is fully exempt from tax. You are required to explain the scope of the
term 'government' and clarify whether the exemption from gratuity income will be
available to the State Government Employees? Give your answer in accordance
with the provisions of the General Clauses Act, 1897.
 Answer

According to section 3(23) of the General Clauses Act, 1897, ‘Government’ or ‘the
Government’ shall include both the Central Government and State Government.
Hence, wherever, the word ‘Government’ is used, it will include Central Government and
State Government both.
Thus, when the Income Tax Act, 1961, provides that gratuity paid by the government to
its employees is fully exempt from tax, the exemption from gratuity income will be
available to the State Government employees also.

QUESTION 6 RTP MAY 2025

Mr. N is caught stealing a bicycle, an offense punishable under the Indian Penal
Code. According to Section 379 of the IPC, the punishment for theft was charged
against him. Elaborate how the term "imprisonment" levied under the General
Clauses Act, 1897, can be applied in line with the relevant law specified in the IPC?

ANSWER
According to section 3(27) of the General Clauses Act, 1897 states that ‘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 labor 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.

In this case:
If the court considers Mr. N's offense as a minor theft and believes it does not
warrant harsh punishment, it might sentence him to simple imprisonment.
However, if the theft involved force, was committed in a violent manner, or if Mr. N has a
history of criminal behavior, the court may decide to impose rigorous imprisonment.

Question 7

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

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 19

(iii) Things attached to the earth, or
(iv) 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 8.

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” [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
(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 9
“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.” Explain in the light of provisions of the General Clauses Act,
1897.
 ANSWER
1. “Immovable Property” [Section 3(26)]:
 ‘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.
2. 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.
So based on the abovementioned provisions right of way to access from one
place to another may come within the definition of Immovable property
because it is a benefit arises out of the land whereas right to drain of water is
not immovable property because it is not covered within the above definition of
immovable property.

QUESTION 10 RTP MAY 2024

Yogveer Singh has a mango orchard at Manchanga Village, Bilaspur. The orchard
has more than one hundred Mango trees. Yogveer Singh has sold orchard along
with all the mango trees. Explain, in the lights of provisions of the General Clauses
Act 1897, whether the sale of trees will be considered as sale of Immovable
Property?

ANSWER
According to section 3(36) of the General Clauses Act 1897, ‘Movable Property’ shall
mean property of every description, except immovable property. While section 3(26)
provides, ‘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.
In the given question, Yogveer Singh has sold mango orchard along with all the mango
trees. In the lights of provisions of the Act, as trees are benefits arise out of the land and
attached to the earth, hence, mango trees are immovable property.

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 21

QUESTION 11 SUGGESTED JAN. 2025
State what do you understand by the term 'document' as per the General Clauses
Act, 1897? Discuss which of the following will be treated as a document:
(i) Power of Attorney
(ii) Cheque

ANSWER
According to section 3(18) of the General Clauses Act, 1897, ‘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, books, file, painting, inscription and even computer files are all
documents. However, it does not include Indian Currency Notes.
(i) Power of Attorney
It is a written legal instrument by which a person (the principal) authorizes another
person (the agent) to act on their behalf. It meets the criteria of a document as it is
written or expressed, contains information describing the authority granted and is
intended to record and communicate the legal relationship.
(ii) Cheque
A cheque is a negotiable instrument that directs a bank to pay a specified sum of
money from the drawer's account to the payee. It qualifies as a document because it is
written or printed, records details such as the amount, date, and parties involved and
serves as evidence of a financial transaction.

Hence, both a Power of Attorney and a Cheque fall within the definition of a
"document" within the meaning of Section 3(18) of the General Clauses Act, 1897. They
are tangible representations of written information intended for legal or transactional
purposes.

QUESTION 12 SUGGESTED JAN. 2025

Define the term 'person' as per the General Clauses Act, 1897. Discuss which of the
following will be treated as a person:
(i) An idol
(ii) A public body
(iii) A company

ANSWER
Definition of the term “Person”
As per section 3(42) of the General Clauses Act, 1897, “Person” shall include:
  any company, or
 an association, or
 body of individuals, whether incorporated or not. From the above definition, we can
conclude:
(i) An Idol: An idol is a juristic person. A juristic person is a legal entity with a legal
personality that is recognized by law. Hence, an idol is a person.
(ii) A Public Body: A public body to be a person need not always be set- up by
the statute. It may be set-up by the Government by exercising its executive
function. A public body is a legal entity and is treated as a "person."
(iii) A Company: The definition of person includes a company. Thus, a company is a
person.

QUESTION 13 SUGGESTED NOV. 2022

What is the meaning of 'Official Gazette' as per the provisions of the General
Clauses Act, 1897?

ANSWER
“Official Gazette” [Section 3(39) of the General Clauses Act, 1897]: ‘Official Gazette’ or
‘Gazette’ shall mean:
(i) The Gazette of India, or
(ii) 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.

QUESTION 14 MTP MARCH. 2025

CCTV recording of an incident can be considered as a document. Explain what do
you understand by the word document and how will you justify your answer in
accordance with the provision of the General Clauses Act, 1897?

ANSWER
As per Section 3 of the Indian Evidence Act, 1872, a document refers to any matter that is
expressed or described upon a substance using letters, figures, or marks with the
intention of recording information. Similarly, Section 3(18) of the General Clauses Act,
1897, states that a document includes any material on which information is written,
Piyush Sir (Bikaneri) Notes based on ICAI Module Page 23
expressed, or described through various means.

A document generally consists of four key elements:

1. Matter – The content or subject recorded in the document.
2. Record – The process of fixing or storing the matter on a particular medium.
3. Substance – The physical medium on which the information is recorded (paper,
digital file, stone engraving, etc.).
4. Means – The method used to record the information, such as letters, numbers,
symbols, or figures.
So a contract agreement between two businesses is a document because it contains
matter (terms and conditions of the agreement). It is recorded in writing on a substance
(paper or electronic document). It is written using letters and symbols to communicate
between the parties.

A CCTV recording of an incident is a document. Even though it is not written on

paper, it is still a document because it records matter (the incident), is stored on a
medium (hard drive or tape) and can be used as proof in a legal proceeding.

Application to foregoing definitions to previous enactments [Section 4]- There

are certain definitions in section 3 of the General Clauses Act, 1897 which would also
apply to the Acts and Regulations made prior to 1897 i.e., on the previous enactments
of 1868 and 1887. This provision is divided into two parts-

(1) Application of terms/expressions to all [Central Acts] made after 3rd January,
1868, and to all Regulations made on or after the 14th January, 1887-
Here the given relevant definitions in section 3 of the following words and
expressions, that is to say, ‘affidavit’, ‘immovable property’, ‘imprisonment’,
‘‘month’, ‘movable property’, ‘oath’, ‘person’, ‘section’, ‘and ‘year’ (total 9 words)
apply also, unless there is anything repugnant in the subject or context, to all
Central Acts made after the 3rd January, 1868, and to all Regulations made on
or after the 14th January, 1887.

(2) Application of terms/expressions to all Central Acts and Regulations made

on or after the fourteenth day of January, 1887- The relevant given
definitions in the section 3 of the following words and expressions, that is to
say, ‘commencement’, ‘financial year’, ‘offence’, ‘registered’, schedule’, ‘sub-
section’ and ‘writing’ (total 7 words) apply also, unless there is anything
repugnant in the subject or context, to all Central Acts and Regulations made
on or after the fourteenth day of January, 1887.
 Application of certain definitions to Indian Laws [Section 4A]-

(1) The definitions in section 3 of the expressions ‘Central Act’, ‘Central

Government’, ‘‘Gazette’, ‘Government’, ‘Government Securities’, ‘Indian
Law’, and ‘‘Official Gazette’, ‘shall apply, unless there is anything repugnant in
the subject or context, to all Indian laws.

(2) In any Indian law, references, by whatever form of words, to revenues of the
Central Government or of 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 the State, as the case may be.

GENERAL RULES OF CONSTRUCTION: [SECTION 5 TO SECTION 13]

“Coming into operation of enactment” [Section 5]: 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 Governor
General in case of a Central Acts made before the commencement of the
Indian Constitution and/or, of the President in case of an Act of Parliament.

(Step 3)
Example 18: 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. (Step 2)
Example 19: SEBI (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 January, 2016. Here, this regulation shall come into force
on 1st January, 2016 rather than the date of its notification in the gazette.

The Supreme Court in A.K. Roy v. UOI, AIR 1982 SC 710, 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 with a view to compel the
Government to bring the same into operation on particular day.

However, in Altemeis Rein v. UOI AIR 1988 SC 1768, it was held that if a sufficient time

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 25

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
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.

PRESUMPTION AGAINST RETROSPECTIVITY

All laws which affect substantive vested rights generally operate prospectively and
there is a presumption against their retrospectivity till there are express words
giving retrospective effect or where the language used necessarily implies that
such retrospective operation is intended. Hence, the question whether a statutory
provision has retrospective effect or not depends primarily on the language in
which it is couched.

QUESTION 15 RTP JAN. 2025

The Parliament recently passed the Environment Protection Amendment Act, 2024,
to strengthen regulations on industrial waste disposal. The Act specified the
commencement date as 1st September, 2024. The President gave assent to the Act
on 15th July, 2024.
Green Earth Limited, an industrial company, is uncertain about when the provisions
of the Environment Protection Amendment Act, 2024, will start to apply. The
company’s legal team has raised question on whether they need to immediately
comply with the new regulations or if they have a grace period until the
commencement date. Give your answer in reference to the provisions of the
General Clauses Act, 1897.

ANSWER
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 Governor General in case of a Central
Acts made before the commencement of the Indian Constitution and/or, of the President
in case of an Act of Parliament.
 In the given question, the Environment Protection Amendment Act, 2024, received assent
of President of India on 15th July, 2024. The commencement date is prescribed as 1st
September 2024. Accordingly, the Environment Protection Amendment Act, 2024, shall
come into enforcement 1st September, 2024.
Question 16 MTP/ OCT. 2021/3 MARKS
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.
Referring to the provisions of the General Clauses Act, 1897, examine the date
of enforcement of these Regulations?
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 Governor General in case of a Central Acts made before the
commencement of the Indian Constitution and/or, of the President in case
of an Act of Parliament.
2. Hence, in the given question, SEBI (Issue of Capital and Disclosure
Requirements) (Fifth Amendment) Regulations, 2015 shall come into
enforcement on 1st January, 2016 rather than the date of its notification in
the gazette.

“Effect of Repeal” [Section 6]: Where any Central legislation or any regulation made
after the commencement of this Act repeals any Act made or yet to be made,
unless another purpose exists, the repeal shall not:
 Revive anything not enforced or prevailed during the period at which repeal
is effected or;
 Affect the previous operation of any enactment so repealed or anything duly
done or suffered thereunder; or
 Affect any right, privilege, obligation or liability acquired, accrued or incurred
under any enactment so repealed; or
 Affect any penalty, forfeiture or punishment incurred in respect of any offence
committed against any enactment so repealed; or
 Affect any inquiry, litigation or remedy with regard to such claim, privilege,
Piyush Sir (Bikaneri) Notes based on ICAI Module Page 27
 debt or responsibility or any inquiry, litigation or remedy may be initiated,
continued or insisted.
In State of Uttar Pradesh v. Hirendra Pal Singh, (2011), 5 SCC 305, SC held that whenever
an Act is repealed, it must be considered as if it had never existed. Object of repeal
is to obliterate the Act from statutory books, except for certain purposes as provided
under Section 6 of the Act.

In Kolhapur Canesugar Works Ltd. v. Union of India, AIR 2000, SC 811, Supreme
Court held that Section 6 only applies to repeal and not to omissions and applies when
the repeal is of a Central Act or Regulation and not of a Rule.

In Navrangpura Gam Dharmada Milkat Trust v. Ramtuji Ramaji, AIR 1994 Guj 75: ‘Repeal’
of provision is in distinction from ‘deletion’ of provision. ‘Repeal’ ordinarily brings
about complete obliteration 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. For
the purpose of this section, the above distinction between the two is essential.

QUESTION 17 SUGGESTED SEP. 2024

Referring to the provisions of the General Clauses Act, 1897, answer the following
questions:
(i) Whenever a new law is enacted by the Government of India, what shall be its
date of coming into force?
(ii) Whenever a new law is enacted to replace the existing law, it repeals the old
enactment. Describe the points which shall not have any effect of repeal of
the old enactment.

ANSWER
(i) As per 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 Governor General in case of a
Central Act made before the commencement of the Indian Constitution and/or, of
the President, in case of an Act of Parliament.
Where, if any specific date of enforcement is prescribed in the Official Gazette, the
Act shall into enforcement from such date.
(ii) According to section 6 of the General Clauses Act, 1897, where any Central
legislation or any regulation made after the commencement of this Act repeals
any Act made or yet to be made, unless another purpose exists, the repeal shall
 not:
 Revive anything not enforced or prevailed during the period at which repeal is
effected or;
 Affect the previous operation of any enactment so repealed or anything duly done
or suffered thereunder; or
 Affect any right, privilege, obligation or liability acquired, accrued or incurred under
any enactment so repealed; or
 Affect any penalty, forfeiture or punishment incurred in respect of any offence
committed against any enactment so repealed; or
 Affect any inquiry, litigation or remedy with regard to such claim, privilege,
debt or responsibility or any inquiry, litigation or remedy may be initiated,
continued or insisted.

Question 18
What are the various effects of repeal of Central Act or Regulation under the
provisions of the General Clauses Act, 1897?
ANSWER
“Effect of Repeal” [Section 6]: Where any Central legislation or any regulation
made after the commencement of this Act repeals any Act made or yet to be made,
unless another purpose exists, the repeal shall not:
1. Revive anything not enforced or prevailed during the period at which
repeal is effected or;
2. Affect the previous operation of any enactment so repealed or anything duly
done or suffered thereunder; or
3. Affect any right, privilege, obligation or liability acquired, accrued or incurred
under any enactment so repealed; or
4. Affect any penalty, forfeiture or punishment incurred in respect of any offence
committed against any enactment so repealed; or
5. Affect any inquiry, litigation or remedy with regard to such claim, privilege,
debt or responsibility or any inquiry, litigation or remedy may be initiated, continued or
insisted.
Question 19.

Repeal’ of provision is different from ‘deletion’ of provision. Explain as per

the General Clauses Act, 1897.

Answer

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 29

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.

“Repeal of Act making textual amendment in Act or Regulation” [Section 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, the 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.

“Revival of repealed enactments” [Section 7]- (1) In any Central Act or

Regulation 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, expressed to state that purpose.
(2) This section applies also to all Central Acts made after the third day of January, 1968
and to all Regulations made on or after the fourteenth day of January, 1887.
In other words, to revive a repealed statute, it is necessary to state an intention to do
so.
“Construction of references to repealed enactments” [Section 8]- (1) Where this
Act or 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 as references to the
provision so re-enacted.

(2) Where before the fifteenth 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 reference in any Central Act or in any Regulation or instrument
to the provision so repealed shall, unless a different intention appears, be construed as
references to the provision so re-enacted.

In Gauri Shankar Gaur v. 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 20: In section 115 JB of the Income Tax Act, 1961, for calculation of book
profits, the Companies Act, 1956 are required to be referred. With the advent of
Companies Act, 2013, the corresponding change has not been made in section 115 JB
of the Income Tax Act, 1961. On referring of section 8 of the General Clauses Act,
book profits to be calculated under section 115 JB of the Income Tax Act will be as per
the Companies Act, 2013.
QUESTION 20 RTP QUESTION/NOV.2022/MARKS….
Section 2(18)(aa) of the Income Tax Act, 1961, provides that a company is said to
be a company in which the public are substantially interested, if it is a company
which is registered under section 25 of the Companies Act, 1956. After the advent
of Companies Act, 2013, the corresponding change has not been made in section
2(18) of the Income tax Act, 1961. Explain, with reference to the provisions of the
General Clauses Act 1897, how will the provisions of section 2(18)(aa) of the
Income Tax Act, 1961, will be considered after the enactment of the Companies Act
2013?
RTP ANSWER
According to section 8 of the General Clauses Act, 1897, where this Act or 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 as references to the provision so re-enacted.
Also, in Gauri Shankar Gaur v. 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.

As per the facts of the question, even after the advent of the Companies Act 2013, no
corresponding amendment was done in section 2(18)(aa) of the Income Tax Act, 1961,
which provides that a company is said to be a company in which the public are
substantially interested, if it is a company which is registered under section 25 of the
Companies Act, 1956.

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 31

In the given situation, as per section 8 of the General Clauses Act, 1897 and the decision
of case of Gauri Shankar Gaur v. State of U.P., for section 2(18)(aa) of the Income Tax Act,
1961, provisions of the Companies Act, 2013 will be applicable in place of the Companies
Act, 1956.

“Commencement and termination of time”[Section 9]: 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”.
Example 21: A company declares dividend for its shareholder in its Annual General
Meeting held on 30/09/2022. 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 01/10/2022 to 30/10/2022. In this series of 30 days, 30/09/2022 will
be excluded and last 30th day i.e. 30/10/2022 will be included.

Question 21.
Komal Ltd. declares a dividend for its shareholders in its AGM held on 27th
September, 2018. 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 27/09/2018. 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
28/09/2018 to 27/10/2018. In this series of 30 days, 27/09/2018 will be
excluded and last 30th day, i.e. 27/10/2018 will be included. Accordingly,
Komal Ltd. will be required to pay dividend within 28/09/2018 and
27/10/2018 (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 28th
October, 2018 to 3rd November, 2018 (both days inclusive).

“Computation of time” [Section 10]: Where by any legislation or regulation,

 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 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.

In K. Soosalrathnam v. Div. Engineer, N.H.C. Tirunelveli, it was held by Madras High Court
that since the last date of the prescribed period was subsequent 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.
Question 22 SUGGESTED QUESTION /JULY- 21/(Q.No. 5D)/ 3 MARKS
Ajit was supposed to submit an appeal to High Court of Kolkata on 30th March,
2020, which was the last day on which such appeal could be submitted.
Unfortunately, on that day High Court was closed due to total Lockdown all over
India due to Covid-19 pandemic. Examine the remedy available to Ajit under the
Piyush Sir (Bikaneri) Notes based on ICAI Module Page 33
provisions of the General Clauses Act, 1897.
ANSWER
The given answer is based on section 10 which deals with “Computation of time” under
the General Clauses Act, 1897. Where by any legislation or regulation, 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 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.

In the question, Ajit was supposed to submit an appeal to High Court on 30th March
2020, which was the last day of filing the same. On that day High Court was closed due
to total lockdown all over India.

In line with said provision, Ajit can submit an appeal on the day on which the High Court
is open.

Question 23 RTP/ NOV-21/

Mr. Sohan has issued a promissory note of `1000 to Mr. Mohan on 17th May 2021
payable 3 months after date. After that, a sudden holiday was declared on 20 th
August 2021 due to Moharram. As per the provisions of the General Clauses Act
1897, what should be the date of presentment of promissory note for payment?
Whether it should be 19 th August 2021 or 21st August 2021?
ANSWER
Section10 of the General Clauses Act 1897 provides where by any legislation or
regulation, 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 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.
A promissory note of `1000 was issued by Mr. Sohan to Mr. Mohan on 17th May 2021
which was payable 3 months after date. After that, a sudden holiday was declared on 20
th August 2021 due to Moharram.
In the given case, the period of 3 months ends on 17th August 2021. Three days of grace
are to be added. It falls due on 20th August 2021 which declared to be a public holiday
after the issue of Promissory Note. In the light of provisions of Sec. 10 of the General
Clauses Act 1897, the due date will be on next day when office is open i.e. 21 st August
2021.
 “Measurement of Distances” [Section 11]: In the measurement of any distance, for
the purposes 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.

QUESTION 24 MTP DEC. 2024

ABC Limited operates a factory situated near a river. As per a recent Central Act,
factories must be located at least 5 kilometers away from any river. A dispute arises
when an environmental agency claims that ABC Limited's factory is only 4.5
kilometers away from the river, while ABC Limited contends that the distance is 5.3
kilometers as per the road distance measured along the winding path leading to the
river.
Based on the provisions of the General Clauses Act, 1897, advise whether the
contention of ABC Limited is correct.

ANSWER
According to section 11 of the General Clauses Act, 1897, in the measurement of any
distance, for the purposes 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.
In this case, the distance between ABC Limited’s factory and the river must be measured in
a straight line on a horizontal plane, not based on the road or path distance. The
environmental agency's claim that the factory is only 4.5 kilometers away in a straight
line is correct. Since this measurement is less than the required 5 kilometers, the factory
does not comply with the law.
Therefore, ABC Limited’s contention is not correct.

“Duty to be taken pro rata in enactments” [Section 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 any goods or merchandise,

 then a like duty is leviable according to the same rate on any greater or less
quantity.

 Pro rata is a Latin term used to describe a proportionate allocation.

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 35

Example 22: Where several debtors are liable for the whole debt and each is liable
for his own share or proportion only, they are said to be bound pro rata.
Example 23: When a company pays dividends to its shareholders, each investor is paid
according to their holdings. If a company has 100 shares outstanding, for example, and
issues a dividend of ` 2 per share, the total amount of dividends paid will be ` 200.
No matter how many shareholders there are, the total dividend payments cannot
exceed this limit. In this case, ` 200 is the whole, and the pro rata calculation must
be used to determine the appropriate portion of that whole due to each shareholder.

Assume there are only four shareholders who hold 50, 25, 15, and 10 shares,
respectively. The amount due to each shareholder is their pro rata share. This is
calculated by dividing the ownership of each person by the total number of shares
and then multiplying the resulting fraction by the total amount of the dividend
payment.

The majority shareholder's portion, therefore, is (50/100) x ` 200 = ` 100. This

makes sense because the shareholder owns half of the shares and receives half of the
total dividends. The remaining shareholders get ` 50, ` 30, and ` 20, respectively.

QUESTION 25 RTP SEP. 2024

Mr. Chaggan Lal is an importer dealing in luxury perfumes. Recently, a new
enactment was passed which imposes a duty of 15% on the value of luxury goods,
including perfumes.
Now Mr. Chaggan Lal has approached you to explain to him the provisions in
relation to ‘Duty to be taken pro rata in enactments’ of the General Clauses Act,
1897. Also, help him to calculate the amount of duty on a Shipment of 100 bottles
of perfumes, each valued at $50.

ANSWER
According to section 12 of the General Clauses Act, 1897, 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 like duty is leviable according to the same rate on any greater or
less quantity.
The amount of duty would be= (100* 50)*15%= $750.
 Question 26 MTP/ OCT. 21/3 MARKS
Explain the meaning of ‘calculation of duty to be taken on pro rata basis’ as per the
provisions of the General Clauses Act, 1897. Give an example.
ANSWER
“Duty to be taken pro rata in enactments”: According to section 12 of the General
Clauses Act, 1897, 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 like duty is leviable
according to the same rate on any greater or less quantity.
Pro rata is a Latin term used to describe a proportionate allocation.
Example: Where several debtors are liable for the whole debt and each is liable for his
own share or proportion only, they are said to be bound pro rata.

“Gender and number” [Section 13]: In all legislations and regulations, unless
there is anything repugnant in the subject or context-

(1) Words importing the masculine gender shall be taken to include females,
and
(2) Words in singular shall include the plural and vice versa.
In accordance with the rule that the words importing the masculine gender are to be
taken to include females, the word men may be properly held to include women,
and the pronoun ‘he’ and its derivatives may be construed to refer to any person
whether male or female. So, the words ‘his father and mother’ as they occur in
Section 125(1) (d) of the CrPC, 1973 have been construed to include ‘her father and
mother’ and a daughter has been held to be liable to maintain her father unable to
maintain himself.

Where a word connoting a common gender is available but the word used
conveys a specific gender, there is a presumption that the provisions of General
Clauses Act, 1897 do not apply.

Thus, the word ‘bullocks’ could not be interpreted to include ‘cows’.

But the general rule in Section 13(1) has to be applied with circumspection of
interpreting laws dealing with matters of succession. Thus, the words “male
descendants” occurring in Section 7 and Section 8 of the Chota Nagpur
Tenancy Act, 1908 were not interpreted to include female descendants.
Piyush Sir (Bikaneri) Notes based on ICAI Module Page 37
Question 27
Under the provisions of companies Act, 2013 if a person committed fraud in
respect of Company then he shall be punishable under section 447 for fraud. Miss
Katrina committed fraud with respect to company. On a prosecution against her in
the court, she challenges that liability of only male person under section 447
because use of word “He shall be punishable …………”, represents to a male
person. Advice as per the provision of General clauses Act, 1897, whether
contention of Miss Katrina is tenable?

ANSWER
1. As per the provisions of section 13 of General clauses Act,1897 In all legislations
and regulations, unless there is anything repugnant in the subject or context-
Words importing the masculine gender shall be taken to include females.

2. So applying abovementioned provision the word male shall include female and he
shall include she unless there is any repugnancy appear from the context.

3. Contention of Miss Katrina shall not be tenable and she shall be liable Under
section 447 for fraud.

Question 28
‘Bullocks’ could not be interpreted to include ‘Cows’. Comment as per the
provisions of the General Clauses Act, 1897?
ANSWER
1. “Gender and number” [Section 13]: In all legislations and regulations, unless there
is anything repugnant in the subject or context-
(i) Words importing the masculine gender shall be taken to include females, and
(ii) Words in singular shall include the plural and vice versa.
2. In accordance with the rule that the words importing the masculine gender are to
be taken to include females, the word men may be properly held to include
women, and the pronoun ‘he’ and its derivatives may be construes to refer to
any person whether male or female. So the words ‘his father and mother’ as
they occur in S.125(1) (d) of the CrPC, 1973 have been construed to include
‘her father and mother ‘ and a daughter has been held to be liable to maintain her
father unable to maintain himself
3. But the general rule in S. 13(1) has to be applied with circumspection of
interpreting laws dealing with matters of succession. Thus, the words “male
descendants” occurring in S.7 and S.8 of the Chota Nagpur Tenancy Act, 1908
 were not interpreted to include female descendants.
4. Where a word connoting a common gender is available but the word used conveys
a specific gender, there is a presumption that the provisions of GC Act do not
apply. Thus, the word ‘bullocks’ could not be interpreted to include ‘cows’
Question 29
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 company?

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.
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 30 SUGGESTED QUESTION /JULY- 21/(Q.No. 4C) 4 MARKS

Examine the validity of the following statements with reference to the General
Clauses Act, 1897:
(i) Insurance Policies covering immovable property have been held to be
immovable property.
(ii) The word "bullocks" could be interpreted to include "cows".
ANSWER
(i) Insurance Policies covering immovable property have been held to be
immovable property: This statement is not valid.
Insurance policy is a written document containing an agreement between the
insurer and insured. It includes a matter intended to be used or may be used for
the purpose or recording of the matter. Hence, the insurance policies
coveringimmovable property is not covered under the definition of immovable
property.
(ii) The word ‘bullocks’ could be interpreted to include ‘cows’: This statement isnot
Piyush Sir (Bikaneri) Notes based on ICAI Module Page 39
 valid. Where a word connoting a common gender is available but the word used
conveys a specific gender, there is a presumption that the provisions of General
Clauses Act, 1897 do not apply. Thus, the word ‘bullocks’ could not be
interpreted to include ‘cows’.

QUESTION 31 RTP MAY 2023

Mrs. Neelu Chandra was director in Laddoo Sweets Private Limited. Once while
dealing with supplier of raw materials for company, she agreed to get some secret
commission from supplier for making the deal. Afterwards, on finding the facts,
the company has filed the suit against Mrs. Neelu Chandra. She contended that
section 166 of the Companies Act, 2013, provides “A director of a company shall
not achieve or attempt to achieve any undue gain or advantage either to himself or
to his relatives, partners, or associates and if such director is found guilty of
making any undue gain, he shall be liable to pay an amount equal to that gain to
the company.” She contended that section 166 is applicable to male director only,
she being female will not be liable.
In the light of the provisions of the General Clauses Act, 1897, decide whether she
is bound by the provisions of section 166 of the Companies Act, 2013?

ANSWER
By virtue of provisions of section 13 of the General Clauses Act, 1897, in all Central Acts
or Regulations, unless there is anything repugnant in the subject or context, words
importing the masculine gender shall be taken to include females.
Mrs. Neelu Chandra, director in Laddoo Sweets Private Limited, made an undue gain in
the form of commission (from supplier for making the deal) in dealing for Laddoo Sweets
Private Limited but she denied accepting the liability by saying that the language of
section 166 provides penalty only for male directors not for females.
On the basis of provisions of the General Clauses Act, 1897 and facts of the case, the
provisions of section 166 of the Companies Act, 2013, are not only applicable to males
but also to females. Therefore, Mrs. Neelu Chandra is bound to comply by section 166 of
the Companies Act, 2013.

POWER AND FUNCTIONARIES [SECTION 14 TO 19]

“Power conferred to be exercisable from time to time” [Section 14]: (1) Where,
by any Central Act or Regulation made after the commencement of this Act, any
power is conferred, then unless a different intention appears that power may be
exercised from time to time as occasion requires.

(2) This section applies to all Central Acts and Regulations made on or after the
 fourteenth day of January, 1887.
Relying on Section 14, the SC has held that the power under Section 51(3) of the States
Reorganisation Act, 1956 can be exercised by the Chief Justice as and when the
occasion arose for its exercise.
“Power to appoint to include power to appoint ex-officio” [Section 15]:
Where by any legislation 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, may be made either by name or by virtue of
office.
Ex-officio is a Latin word which means by virtue of one’s position or office.
Provision under this section states that where there is a power to appoint, the
appointment may be made by appointing ex-officio as well.

“Power to appoint to include power to suspend or dismiss” [Section 16]: The

authority having for the time being power to make the appointment shall also
have power to suspend or dismiss any person appointed whether by itself or any
other authority in exercise of that power.

Order 40, Rule 1(a) of CPC, 1908, which authorises a court to appoint a receiver,
has been construed to embrace power of removing a receiver.

Article 229(1) of the Constitution which empowers the Chief Justice to make
appointment of officers and servants of a High Court has been interpreted to
include a power to suspend or dismiss.

QUESTION 32 SUGGESTED MAY 2024

(i) The Board of Directors of Cool Private Limited, through a resolution passed in
the board meeting, granted authorization to Mr. Sharad, the CEO of the
company to appoint two employees for the procurement department.
Subsequently, Mr. Sharad selected Mr. Suresh and Mr. Hemant for the
positions. However, after one month, Mr. Sharad, noticing unsatisfactory
performance and lack of honesty in their duties, issued dismissal orders for
both employees, citing proper reasons. Mr. Suresh contested his dismissal in
the court, arguing that the Board had only empowered Mr. Sharad for
appointments and not for dismissals and hence the dismissal order is invalid.
Assess the validity of Mr. Suresh's argument under the provisions of the
General Clauses Act, 1897.
(ii) Mr. M issued a cheque of ` 3,00,00 dated 31.12.2023 at 10 a.m. to Mr. N as a
consideration towards the medical services provided by the later. Mr. N

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 41

 presented the above cheque on 31.03.2024 during the banking business
hours. The cheque was dishonoured taking the plea that it was not presented
within the requisite time of 3 months as provided under section 138 of the
Negotiable Instruments Act 1881. Referring to the provisions of the General
Clauses Act, 1897 decide, whether the plea for dishonouring the cheque was
valid.

ANSWER
(i) According to section 16 of the General Clauses Act, 1897, the authority having for
the time being power to make the appointment shall also have power to
suspend or dismiss any person appointed whether by itself or any other
authority in exercise of that power.
In the given question, Mr. Sharad was granted authorization to appoint the said
employees. This implies (in terms of the General Clauses Act, 1897) that he
also had the power to dismiss or suspend these employees. Hence, Mr. Suresh’s
argument is not valid.
(ii) As per the section 9 of the General Clauses Act, 1897, in case 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”.
The first day in series is 31.12.2023 and last day is 31.03.2024. Hence, applying the
above provisions, 31.12.2023 is to be excluded and 31.03.2024 is to be included in
calculation as per the General Clauses Act, 1897.
Since, the cheque has been presented within 3 months i.e. on 31.03.2024, it is
eligible for honor and payment.
Hence, the plea of dishonouring the cheque is not valid.

“Substitution of functionaries” [Section 17]: (1) 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.

(2) This section applies also to all Central Acts made after the third day of January, 1868
and to all Regulations made on or after the fourteenth day of January, 1887.
 “Successors” [Section 18]: (1) 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.

(2) This section shall also apply to all Central Acts made after the third day of January,
1868 and to all Regulations made on or after the fourteenth day of January, 1887.
“Official Chiefs and subordinates” [Section 19]: 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, to prescribe
the duty of the superior. This section applies to all the Central Acts made after
the third day of January, 1868, and to all Regulations made on or after the fourteenth
day of January, 1887.
In K.G. Krishnayya v. State, AIR 1959 it was held that it is not essential that same
statutory authority that initiated a scheme under the Road Transport Corporation Act
1950, should also implement it. It is open to the successor authority to implement or
continue the same.
Similarly, in case under the Preventive Detention Act, where there is a change in
the Advisory Board after service of the detention order, the new Advisory Board
can consider the case pending before the earlier board.

PROVISION AS TO ORDERS, RULES ETC. MADE UNDER

ENACTMENTS [SECTION 20 TO SECTION 24]
“Construction of orders, etc., issued under enactments” [Section 20]: Where by
any legislation or regulation, a power to issue any notification, order, scheme, rule,
form, or by-law is conferred, then expression 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 the Act or regulation conferring
power.

Example 24: The term ‘collector’ used in Rule 4 of the Land Acquisition
(Companies) Rule, 1963, will have the same meaning as in Section 3(c) of the Land
Acquisition Act, 1894.

In Subhash Ram Kumar v. State of Maharashtra, AIR 2003 SC 269, it was held that
‘Notification’ in common English acceptation mean and imply a formal announcement

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 43

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-laws” [Section 21]: Where by any legislations or regulations a
power to issue notifications, orders, rules or bye-laws is conferred, then that
power, exercisable in the like manner and subject to the like sanction and
conditions (if any), to add, to amend, vary or rescind any notifications, orders, rules
or bye laws so issued.

In Rasid Javed v. State of Uttar Pradesh, AIR 2010 SC 2275, Supreme Court held
that under Section 21 of the Act, an authority which has the power to issue a
notification has the undoubted power to rescind or modify the notification in
the like manner.

In Shreesidhbali Steels Ltd. v. State of Uttar Pradesh, AIR 2011 SC 1175, Supreme Court
held that power under section 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 of time.

“Making of rules or bye-laws and issuing of orders between passing and

commencement of enactment” [Section 22]: Where, by any Central Act or
Regulation which is not to come into force immediately, on the passing thereof, a
power is conferred to make rules or bye-laws, or to issue orders with respect to
the application of the Act or Regulation or with respect to the establishment of
any Court or the appointment of any Judge or officer thereunder, or with
respect to the person by whom, or the time when, or the place where, or the manner in
which, or the fees for which, anything is to be done under the Act or Regulation, then
that power may be exercised at any time after passing of the Act or
Regulation; but rules, bye-laws or orders so made or issued shall not take
effect till the commencement of the Act or Regulation.

It is an enabling provision, its content and purpose being to facilitate the making of
rules, bye laws and orders before the commencement of the enactment in anticipation
of its coming into force. In other words, it validates rules, bye laws and orders
made before the coming into force of the enactment, provided they are made after
its passing and as preparatory to the enactment coming into force.
 Question 33 MTP OCT. 2018
What is the effect on the implementation of the Rules that are issued between
passing and commencement of enactment. Explain as per the provisions of the
General Clauses Act, 1897.
ANSWER
“Making of rules or bye-laws and issuing of orders between passing and
commencement of enactment” [Section 22]:

 Where, by any Central Act or Regulation which is not to come into force
immediately, on the passing thereof,
 a power is conferred to make rules or bye-laws, or to issue orders with respect to
the application of the Act or Regulation or with respect to the establishment of any
Court or the appointment of any Judge or officer thereunder, or with respect to the
person by whom, or the time when, or the place where, or the manner in which, or
the fees for which, anything is to be done under the Act or Regulation,
 then that power may be exercised at any time after passing of the Act or
Regulation;
 but rules, bye-laws or orders so made or issued shall not take effect till the
commencement of the Act or Regulation.

“Provisions applicable to making of rules or bye-laws after previous publications”

[Section 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:-

(1) Draft : The authority having power to make the rules or bye-laws shall,
before making them, publish a draft of the proposed rules or bye-laws for the
information of persons likely to be affected thereby;

(2) Manner : 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) Notice specifying date : There shall be published with the draft a notice
specifying a date on or after which the draft will be taken into consideration;

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 45

 (4) Objection and Suggestion of other Authority : The authority having power
to make the rules 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) Conclusive Proof : 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-
laws has been duly made.

Section 23(5) raises a conclusive presumption that after the publication of the rules
in the Official Gazette, it is to be inferred that the procedure for making the rules had
been followed. Any irregularities in the publication of the draft cannot therefore be
questioned.

It is also open to the authority publishing the draft and entitled to make the
rules to make suitable changes in the draft before finally publishing them. It is not
necessary for that authority to re-publish the rules in the amended form
before their final issue so long as the changes made are ancillary to the earlier draft and
cannot be regarded as foreign to the subject matter thereof.
QUESTION 34
SUGGESTED QUESTION/MAY 2022/MARKS 4
The Ministry of Corporate Affairs (MCA) published in the Gazette of India, the
proposed draft of Rules further to amend certain rules under the Companies Act,
2013. The MCA made some modifications in the draft Rules already published. In
the light of the provisions of the General Clauses Act, 1897, answer the following:
(i) Is it required for MCA to publish a draft of the proposed Rules?
(ii) In case of any irregularities in the publication of the draft, can it be
questioned?
(iii) Is MCA entitled to make suitable changes in the draft?
(iv)Is it necessary to re-publish the Rules in the amended form when the changes
made are ancillary to the earlier draft?
SUGGESTED ANSWER
The answer can be given in terms of section 23 of the General Clauses Act, 1897.
Following shall be the answers in the light of the given information and the relevant legal
provisions:
(i) Yes, MCA is required to publish a draft of the proposed Rules for the information
 of persons likely to be affected thereby.
(ii) No, in case of any irregularities in the publication of the draft, it cannot be
questioned. The publication in the Official Gazette of a rule or bye-law after
previous publication, shall be conclusive proof that the rule or bye-laws has been
duly made. It raises a conclusive presumption that after the publication of the rules
in the Official Gazette, it is to be inferred that the procedure for making the rules
had been followed. Any irregularities in the publication of the draft cannot
therefore be questioned.

(iii) Yes, MCA is entitled to make suitable changes in the draft before finally publishing
them.
(iv) No, it is not necessary to re-publish the Rules in the amended form when the changes
made are ancillary to the earlier draft.

“Continuation of orders etc., issued under enactments repealed and re- enacted”
[Section 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, continue in force,
and be deemed to have been made or issued under the 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 under section 5 or 5A of the
Scheduled District Act, 1874, or any like law, has been extended to any local area, has,
by a subsequent notification, been withdrawn from the 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.

This section accords statutory recognition to the general principle that if a

statute is repealed and re-enacted in the same or substantially the same terms, the
re- enactment neutralizes the previous repeal and the provisions of the repealed
Act which are re-enacted, continue in force without interruption. If however,
the statute is repealed and re-enacted in somewhat different terms, the amendments
and modifications operate as a repeal of the provisions of the repealed Act which are
changed by and are repugnant to the repealing Act.

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

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 47

 new notification taking the above power, till the aforesaid notification is specifically
superseded or withdrawn or modified under the new notification.

The Mines Act of 1923 was repealed and replaced by the Mines Act of 1952. Rules made
under the repealed Act must be deemed to continue in force by virtue of this
section until superseded.
Where an Act is repealed and re-enacted, the fact that the repealed Act stated that
rules made under that Act shall have effect as if enacted in the Act does not mean that
the rules automatically disappear with the repeal of the Act under which they are
made and that there is no room for the application of this section.
Question 35
An investigation was started under the Companies Act, 1956 but before conclusion
of such investigation the Companies Act, 1956 was repealed and replaced by the
Companies Act, 2013. State whether such Investigation be continued under the
Companies Act, 2013? Give your answer in reference of the provisions of the
General Clauses Act, 1897.
ANSWER
1. “Continuation of orders etc., issued under enactments repealed and re- enacted”
[Section 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, continue in force, and
be deemed to have been made or issued under the 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 under section 5 or
5A of the Scheduled District Act, 1874, or any like law, has been extended to
any local area, has, by a subsequent notification, been withdrawn from the 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.
2. This section accords statutory recognition to the general principle that if a statute
is repealed and re-enacted in the same or substantially the same terms, the re-
enactment neutralizes the previous repeal and the provisions of the repealed
Act which are re-enacted, continue in force without interruption. If however, the
statute is repealed and re-enacted in somewhat different terms, the amendments
and modifications operate as a repeal of the provisions of the repealed Act
which are changed by and are repugnant to the repealing Act.
So based on the abovementioned provisions such investigation may be continued
under the Companies Act, 2013.
 MISCELLANEOUS [SECTION 25 TO SECTION 30]
“Recovery of fines” [Section 25]: Section 63 to 70 of the Indian Penal Code and
the provisions of the Code of Criminal Procedure 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-laws, unless the Act,
Regulation, rule or bye-law contains an express provision to the contrary.

“Provision as to offence punishable under two or more enactments” [Section 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 punished twice for the same offence.

Article 20(2) of the Constitution states that no person shall be prosecuted and
punished for the same offence more than once.(Protection against double jeopardy)

According to the Supreme Court, a plain reading of section 26 shows that there is no
bar to the trial or conviction of an offender under two enactments, but there is only a
bar to the punishment of the offender twice for the same offence. In other words, the
section provides that where an act or omission constitutes an offence under two
enactments, the offender may be prosecuted and punished under either or both the
enactments but shall not be liable to be punished twice for the same offence.

In State of M.P. v. V.R. Agnihotri, AIR 1957 SC 592 it was held that when there are two
alternative charges in the same trial, e.g., section 409 of the Indian Penal Code and
section 5(2) of the Prevention of Corruption Act, the fact that the accused is
acquitted of one of the charges will not bar his conviction on the other.
Provisions of Section 26 and Article 20(2) of the Constitution apply only when the
two offences which form the subject of prosecution is the same, i.e., the ingredients
which constitute the two offences are the same. If the offences under the two
enactments are distinct and not identical, none of these provisions will apply.

Question 36
Mr. R, an advocate, fraudulently deceived his client Mr. Chandan who was taking
his expert advise on taxation matters. Now, Mr. R is liable to a fine for his
fraudulent act both under the Advocates Act and the Income Tax Act, 1961. State
the provision as to whether his offence is punishable under both Acts. Give your
answer as per the provisions of the General Clauses Act, 1897.
Answer

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"Provision as to offence punishable under two or more enactments" (Section 26 of
the General Clauses Act, 1897)
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.
Thus, Mr. R shall be liable to be punished either under the Advocates Act, 1961 or under
the Income Tax Act, 1961, but shall not be punished twice for the same offence. He can
be punished under any of the enactments if his offence is established.

QUESTION 37 SUGGESTED SEP. 2024

(i) In a contract of sale, Mr. A fraudulently sold certain unmarketable goods to
Mr. B. Now Mr. A is liable for the fraudulent activity under both the Indian
Contract Act, 1872 and the Sale of Goods Act, 1930. State the provision as per
the General Clauses Act, 1897 as to whether his offence is punishable under
the both the Acts?
(ii) Mr. P bought a car from Mr. G who was his friend. Mr. P did not check the car
or test drive it. Whether the purchase made could be said to be made in good
faith? Explain with reference to the provisions of the General Clauses Act,
1897.

ANSWER
(i) Whether offence is punishable under both the Acts?
According to section 26 of the General Clauses Act, 1897, 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 punished twice for the same offence.
Thus, Mr. A who is liable for the fraudulent activity under both the Indian Contract
Act, 1872 and the Sale of Goods Act, 1930, will be prosecuted and punished
under either or both the enactments but shall not be liable to be punished
twice for the same offence.
(ii) Whether Purchases made could be said to be made in Good Faith?
According to section 3(22) of the General Clauses Act, 1897, 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.
The question of good faith under the General Clauses Act, 1897 is one of fact
in Maung Aung Pu v. 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.
Hence, in the given case, the purchase of car by Mr. P cannot be said to be made in good
faith.

“Meaning of Service by post” [Section 27]: 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.
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.v Natthu 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 v. 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.
Question 38
Mr. Mike has lent his house property to Mr. Wise at a monthly rent of Rs. 15,0000
per month. The yearly rent agreement was due to expire in near future. However,
Mr. Mike does not intend to continue this agreement and he has sent a notice to

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Mr. Wise for the termination of the agreement. Mr. Wise on the other hand does
not want to vacate the property and hence has returned the notice with an
endorsement of refusal. Now, Mr. Wise has contended that the no notice was
served to him and hence there is no need for him to vacate the property. As per the
provisions of the General Clauses Act, 1897, discuss whether a notice was served to
Mr. Wise.
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.
1. Thus, where a notice is sent by 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.
2. Hence, in the given situation, a notice was rightfully served to Mr. Wise.

QUESTION 39 MTP MARCH 2024

Mr. Rachit purchased a new house and after some time he shifted to his new house.
He was regularly filing his Income Tax Return but he did not update his address
with the Income Tax Department. The Income Tax department sent a show cause
notice to Mr. Rachit whereby the time limit for reply was 15 days from service of
notice. The notice was properly sent by registered post to his address which was in
the records of the Income Tax Department. The notice reached at old house and
present owner of that house refused to accept that notice. After a certain period,
the Income Tax Department took a penal action against Mr. Rachit. He requested
the department, that he should not be charged as he did not receive the said
notice. Advise in terms of the provisions of the General Clauses Act, 1897, whether
sending of the show cause notice by the Income Tax Department would be
considered proper service of notice?
Give your answer with reference to the provisions of the General Clauses Act, 1897.
ANSWER
According to 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.
Further, on the basis of decision taken by the apex court in case of Jagdish Singh vs
Natthu Singh, 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 the given case, the Income Tax Department sent the show cause notice properly by a
registered post at the address which was in the records of the department. Hence, it was
a proper service of notice. Further, refusal by current owner of house to accept the
notice, will not amount to- that the notice was not properly served by the Income Tax
Department. It was the duty of Mr. Rachit to update his address. Therefore, Income Tax
Department is correct in its decision.

Question 40 RTP/ MAY-20

Mr. Vyas is the owner of House No. 20 in Geeta Colony, Delhi. He has rented two
rooms in this house to Mr. Iyer. The Income Tax Authority has served a show cause
notice to Mr. Vyas. The said notice was received by Mr. Iyer and returned the notice
with an endorsement of refusal. Decide with reference to provisions of "General
Clauses Act, 1897”, whether the notice was rightfully served on Mr. Vyas.
ANSWER
According to 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.
The facts of the question are similar to a decided case law, wherein 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. Thus, in the given question it can be deemed that the notice was rightfully served
on Mr. Vyas.
Question 41
A notice was served on Mr. P for appearing in the court. However, the notice could
not be served on account of the fact that the house of the Mr. P was found locked.
Thus, Mr. P. did not appear in the court at the said date. Examine the situation as

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 53

per the provisions of the General Clauses Act, 1897 and determine whether Mr. P.
will be liable in the given situation.
ANSWER
1. According to 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.
2. 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.
3. Hence, where the where the notice could not be served on account of the fact that
the house of Mr P was found locked, it will be deemed that the notice was properly
served as per the provisions of Section 27 of the General Clauses Act, and it would
be for Mr. P to prove that it was not really served and that he was not responsible
for such non- service.

Question 42 RTP MAY 2019

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.

“Citation of enactments” [Section 28]: (1) 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 years 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.

(2) 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.

“Saving for previous enactments, rules and bye laws” [Section 29]: The provisions
of this Act respecting the construction of Acts, Regulations, rules or bye-laws made
after commencement of this Act shall not affect the construction of any 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.

“Application of Act to Ordinances” [Section 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), (53) and (54) of section 3 and in section 25 shall be deemed to
include Ordinance made and promulgated by the Governor General under section 23
of the Indian Councils Act, 1861 or section 72 of the Government of India Act,
1915, or section 42 of the Government of India Act, 1935 and an Ordinance
promulgated by the President under Article 123 of the Constitution.

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 55

MCQ based Questions
1. Which of the following is not an Immovable Property?

(a) Land
(b) Building

(c) Timber
(d) Machinery permanently attached to the land

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 assent of the Governor General
(c) It receives assent of both the houses of Parliament
(d) It receives assent of the Prime Minister

3. An act or omission constitutes an offence under two enactments.

Referring to the provisions of the General Clauses Act, 1897, state which
among the following is correct in such a situation:
(a) The offender shall be liable to be prosecuted and punished under that
enactment only, which was enacted last and not under the other enactment.
(b) The offender shall be liable to be prosecuted and punished under that
enactment only, which was enacted first and not under the other enactment.
(c) The offender shall be liable to be prosecuted and punished under both
the enactments.

(d) The offender shall be liable to be prosecuted and punished under that either
or any of those enactments, but shall not be punished twice for the
same offence.
4. Every Act has a which expresses the scope, object and purpose of the
Act. It is the main source for understanding the intention of lawmaker behind
the Act.
(a) Definition
(b) Preamble

(c) Affidavit
 (d) Document

Answer to MCQ based Questions

1. (c) Timber
2. (a) It receives the assent of the President
3. (d) The offender shall be liable to be prosecuted and punished
under that either or any of those enactments, but shall not be
punished twice for the same offence
4. (b) Preamble

QUESTION 1 RTP JAN. 2025

X purchased a car from Y, believing that Y was the legitimate owner. Although X
paid the full purchase price and took possession of the car, he did not check the
Registration Certificate (RC) of the car to verify the authenticity of Y’s ownership.
Later, it was discovered that Y was not the rightful owner, and the car had been
stolen. In the context of “good faith” as defined in the General Clauses Act, 1897,
determine the validity of X’s ownership claim over the car.
(a) X holds valid ownership of the car because he paid the full price and believed Y to
be the legitimate owner.
(b) X does not hold valid ownership because his purchase was made without due care
and attention, even though he acted honestly.
(c) X holds valid ownership because he had no knowledge of the car being stolen,
showing he acted in “good faith.”
(d) X’s ownership is valid because he did not act negligently, and his actions were
deemed “in good faith.”

ANSWER [B]
QUESTION 2 RTP SEP. 2024
Apex Manufacturing is an industrial company based in India. Recently, the company
found itself embroiled in legal issues concerning two separate offences under
different enactments. The first offence involved a violation of environmental
regulations, for which the company was prosecuted and fined. Subsequently, Apex
Manufacturing was charged under a different law for a similar but not identical
environmental violation.
The first offence was under the Environment Protection Act, 1986, for failing to
dispose of hazardous waste properly. The second offence, under the Water
(Prevention and Control of Pollution) Act, 1974, involved discharging untreated
Piyush Sir (Bikaneri) Notes based on ICAI Module Page 57
wastewater into a river.

Mr. Sharma, the company's legal advisor, consulted on said issue. He determined
the prosecution outlined in Section 26 of the General Clauses Act, 1897, and Article
20(2) of the Constitution of India, which protects against double jeopardy. Comment
upon the validity of protection that can be given to the Apex Manufacturing.
(a) Yes valid, because both involve environmental violations.
(b) Not valid, because the specific actions and legal provisions violated are different.
(c) Its valid, because both result in environmental harm.
(d) Its valid, though were prosecuted under different Acts but nature of act is similar.
ANSWER [B]

QUESTION 3 SUGGESTED SEP. 2024

An Act has been passed by the government and though sufficient time has elapsed
since the Act was passed, it has not been brought into force by the Government.
Which of the following is correct in the light of the provisions of the General Clauses
Act, 1897?
(A) The court can issue a mandamus with a view to compel the government to bring
the Act into operation on a particular day.
(B) The court can through a writ direct the Government to consider the question as to
when the Act should begin to operate.
(C) The court can publish a date in Official Gazette as an effective date for
enforcement of the Act.
(D) The court cannot direct the government to consider the question as to when Act
should begin to operate.

ANSWER [B]

QUESTION 4 SUGGESTED SEP. 2024

With reference to the provisions of the General Clauses Act, 1897, in all Legislations
and Regulations, unless there is anything repugnant in the subject or context, words
importing the masculine gender shall be taken:
(A) To exclude female
(B) To exclude boy child
(C) To exclude girl child
(D) To include females
ANSWER [D]
 QUESTION 5 SUGGESTED JAN. 2025
The General Clauses Act, 1897 is applicable to:
(a) whole of India including the Union Territory of Jammu and Kashmir.
(b) whole of India excluding the Union Territory of Jammu and Kashmir.
(c) the Act does not define any "territorial extent" clause.
(d) whole of India excluding the National Capital Region and other Union Territories.
ANSWER [C]

QUESTION 6 MTP OCT. 2020

What among the following could be considered in the term ‘Immovable Property’ as
defined under section 3(26) of the General Clauses Act, 1897?
(a) The soil for making bricks
(b) Right to catch fish
(c) Doors and Windows of the house
(d) All of the above

ANSWER [D]

QUESTION 7 MTP APRIL 2023

Calendar year starts from:
(a) January
(b) April
(c) June
(d) September
ANSWER [A]
QUESTION 8 MTP SEP. 2023
Where, by any Central Act, a power to make any appointment is conferred, then,
unless a different intention appears, the authority having for the time being power
to make the appointment shall also have power:
(a) To appoint the members of that family
(b) To grant increment to any family members
(c) To suspend or dismiss any person appointed
(d) No other power is conferred except for appointment
ANSWER [C]

QUESTION 9 MTP MARCH 2022

As per the provisions of the General Clauses Act, 1897, 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:
(a) Under either or any of those enactments

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 59

(b) Twice for the same offence
(c) Either (a) or (b) as per the discretion of the court
(d) Under the cumulative effect of both the enactments
ANSWER [a]

Case Study 1 MTP MARCH 2024

Tech Inspiration Private Limited was incorporated on 30.06.2018. The main object of the
company was to provide guidance classes for engineering aspirants. For this purpose, they
opened a coaching center at Freedom Plaza, Near Bhagwan Talkies, Bye Pass Road, Agra.
The premise was owned by the company. The company also made a “Employee
Appointment Committee” for the systematic selection and appointment of employees
including faculties for teaching. In the first slab, committee appointed nine teachers, 3
clerical staff and one peon. For the purpose of expansion of business, company decided to
open a branch of the company at nearby city of Agra. After the due research, the
company decided to open its branch at city “Bharatpur” which was just 50 kilometers far
from Agra. The company approached Mr. Raghuram Meena owner of land at Bharatpur
suitable for company. Mr. Raghuram Meena leased his land for ten years to Tech
Inspiration Private Limited. The land had a small temple of lord Ganpati at its centre. The
company constructed the classrooms on the land and many students joined the coaching
classes. Besides it, the temple generated some income in the form of “Chadhava”
(donation). Mr. Raghuram Meena claimed the income of temple with the contention that
he had leased only the land and not the temple.
Further one more problem arose in the company. “Employee Appointment Committee”
found that one of the faculties, Mr. Nitesh Gupta was not performing well. He was not
justifying his duties. Therefore, “Employee Appointment Committee” decided to terminate
him with effect from 31.01.2024 and send him notice of termination by properly
addressing and by registered post to Mr. Nitesh Gupta. Mr. Nitesh Gupta refused to
accept the notice and returned back it to the postman. After two months, on 01.04.2024,
Mr. Nitesh Gupta filed a suit against the company for claiming the salary for the period
from 01.01.2024 to 31.03.2024 with the view that his appointment cannot be terminated
because of two reasons:
(i) “Employee Appointment Committee” was established just to appoint the
employees. They are not authorised for their termination.
(ii) Mr. Nitesh Gupta’s refused to accept the notice of termination with the
contention that it was not properly served to him.
On the basis of above facts and by applying applicable provisions of the Limited Liability
Partnership Act, 2008 and the applicable Rules therein, choose the correct answer (one
out of four) of the following MCQs (1-3) given herein under: -
1. Whether Mr. Raghuram Meena is correct in his claim? Whether he may claim
 the income of temple:
(a) Yes, Mr. Raghuram Meena was correct in his views as he leased only
land not the temple, situated on such land.
(b) Yes, as temple is a constructed building, not land.
(c) No. ‘Immovable Property’ in terms of the General Clauses Act, 1897
includes land, benefits to arise out of land, and things attached to the
earth, or permanently fastened to anything attached to the earth. So,
benefits attached to land and income from temple will be of Tech
Inspiration Private Limited.
(d) No. It is the right of Tech Inspiration Private Limited to decide that who will
claim the income of temple.
2. Whether “Employee Appointment Committee” may terminate Mr. Nitesh
Gupta even the authority letter given to “Employee Appointment
Committee” has no specific clause authorizing it for termination of
employees?
(a) No, as “Employee Appointment Committee” was authorised only for
appointment and not for termination of employees.
(b) Yes, because section 16 of the General Clauses Act, 1897, provides that
unless a different intention appears, power to appoint to include power to
suspend or dismiss.

(c) No, because section 16 of the General Clauses Act, 1897, provides that
power to appoint does not include power to suspend or dismiss.
(d) No, It’s only board of directors of Tech Inspiration Private Limited who has
the right to terminate its employees in board meeting.
3. Whether the refusal to accept the notice sent by post, by Mr. Nitesh Gupta
would be termed as not serving of notice of termination?
(a) Yes, as Mr. Nitesh Gupta had not accepted the notice.
(b) Yes, refusal to accept the post will always be considered as not served.
(c) No, because as per section 27 of the General Clauses Act, 1897 the service
by post shall be deemed to be effected by properly addressing, pre-
paying, and posting by registered post.
(d) No, Mr. Nitesh Gupta had the information of sending of notice.

ANSWER
1. (c)
2. (b)

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 61

3. (c)

Case Study 2 MTP AUG. 2024

In 2024, Global Enterprises Ltd., a company specializing in international trade,
needed to send an important notice to one of its clients, Mr. Rajiv Patel, regarding
a contractual amendment. According to the company’s internal regulations and
the contract terms, the notice had to be served by post.
On April 15, 2024, the company's legal department prepared the notice and
addressed it to Mr. Patel at his registered address. The notice was properly
addressed, prepaid, and sent via registered post with acknowledgment due to
ensure the highest level of confirmation for delivery.
A few days later, on April 20, 2024, the notice was returned with a stamp
indicating that it was "not claimed" by Mr. Patel. The legal department recorded
the return of the notice and noted the endorsement.
The company’s legal advisor referred to past case laws for similar scenarios to
ensure that the notice was considered legally served under Section 27 of the
General Clauses Act, 1897. They reviewed the following precedents:
United Commercial Bank v. Bhim Sain Makhija: It was noted that merely sending a notice
by registered post without the acknowledgment due did not provide sufficient
legal protection for proving service.
Jagdish Singh v. Natthu Singh: This case demonstrated that if a notice sent by
registered post was returned with a refusal endorsement, it was considered served.
Smt. Vandana Gulati v. Gurmeet Singh alias Mangal Singh: It was established that if
a notice sent by registered post to a proper address was returned with an
endorsement like "not claimed", it was deemed served unless proven otherwise.
On the basis of above facts and by applying applicable provisions of the General
Clauses Act, 1897 and the applicable Rules therein, choose the correct answer (one
out of four) of the following Multiple Choice Questions (MCQs 1-3 of 2 marks
each) given herein under:
1. According to Section 27 of the General Clauses Act, 1897, what three
conditions must be fulfilled for a service by post to be deemed
effective?
(a) Properly addressed, Pre-paid, and Posting by ordinary post
(b) Properly addressed, Pre-paid, and Posting by registered post
(c) Properly addressed, Pre-paid, and Sending by courier
 (d) Properly addressed, Pre-paid, and Hand delivery
2. In the case of United Commercial Bank v. Bhim Sain Makhija, why
was the presumption of service under registered post found to be
insufficient?
(a) Because the notice was sent by ordinary post
(b) Because the notice was sent by registered post but not
with acknowledgment due
(c) Because the address was incorrect
(d) Because the recipient did not respond
3. What does the case of Jagdish Singh v. Natthu Singh demonstrate
about the service of notice?
(a) Notice sent by registered post without return endorsement is invalid
(b) Notice sent by registered post and returned with refusal endorsement is
deemed served
(c) Notice sent by ordinary post is deemed served if not returned
(d) Notice served by hand delivery is always valid
ANSWER
1. (b)
2. (b)
3. (b)

Case Study 3 MTP DEC. 2024

Sunrise Technologies Private Limited ("STPL") was in process of establishing its new
software development center in Pune. On 28th February, 2024, the Board of Directors
passed a resolution to purchase a property consisting of:
 A three-storey building
 25 acres of agricultural land adjacent to the building
 100 motor cars
 An orchard with 100 fruit-bearing trees
The company received a government notification dated 15th March, 2024, requiring all
new technology centers to obtain special clearance within 45 days of establishment.

Piyush Sir (Bikaneri) Notes based on ICAI Module Page 63

The notification mentioned that existing orders under the previous Technology Parks Act
(which was repealed and replaced by new legislation) would continue to remain valid.
The notification was to be served to all concerned parties through registered post.
The Managing Director has approached you to understand various legal aspects under the
General Clauses Act, 1897.
On the basis of above facts and by applying applicable provisions of the General Clauses
Act, 1897, choose the correct answer (one out of four) of the following Multiple Choice
Questions (MCQs 1-3, of 2 marks each) given herein under:
1. With respect to the property being purchased by STPL, which of the
following would not qualify as "immovable property" under the General
Clauses Act, 1897?
(a) The orchard with fruit-bearing trees
(b) Motor Cars
(c) The three-storey building
(d) The agricultural land
2. The government notification requires clearance "within 45 days". If the
notification was received on 20th March, 2024, and the 45th day falls on
Sunday, May 4, 2024, what would be the last date for obtaining clearance?

(a) 3rd May, 2024

(b) 4th May, 2024
(c) 5th May, 2024
(d) 6th May, 2024
3. Concerning the previous orders under the repealed Technology Parks Act,
which statement is correct?
(a) All previous orders automatically become void
(b) Previous orders continue to be valid unless explicitly cancelled
(c) Previous orders require fresh validation under new law
(d) Previous orders are valid for only 6 months after repeal
ANSWER
1. (b)
2. (c)
3. (b)