9461210887-Himanshu Agarwal

1. HIMANSHU AGARWAL
CS,LLB,LLM,PHD Scholar
Himanshu_2108@yahoo.in
09461210887

2.  It is process of application of mind
 Also called Law, Act, Enactment. Statute includes
Ordinance, order, bye laws, rules, regulations and
notifications. It is written will of legislature.
 Interpretation is art of finding true sense of words expressed
in statute
Construction is drawing conclusion that is beyond the direct
expression of words used.
WHAT IS
INTERPRETATION
WHAT IS STATUTE
DIFFERENCE BETWEEN
INTERPRETATION AND
CONSTRUCTION

3.  Constitution is supreme.
 All laws should be made as per the constitution.
 Constitution has 3 –Tier structure
PARLIAMEN
T
Also called as
Legislative
authority.
Main function is
to Enact laws
PARLIAMEN
T
Also called as
Legislative
authority.
Main function is
to Enact laws
GOVERNMER
NT
Also called as
Executive Authority.
Main function is to
implement law.
COURT
Also called as
Judiciary Authority
Main function is to
settle disputes

4. 7th
Schedule of Constitution of India prescribes 3
lists
Union ListUnion List
State List
Concurrent
List*

5. JUDGEMENTS
are not
DELIVERED
but are
OBTAINED
JUDGEMENTS
are not
DELIVERED
but are
OBTAINED

6.  Promulgated by president of India.
 Recommendation of the Cabinet.
 Approval of Lok Sabha and Rajya Sabha not
required.
 Used in emergency i.e. when parliament is not in
session
 Without approval, life of ordinance is over.
 Activities that were done during the ordinance
would remain valid.
EXAMPLE: SARFAESI Ordinance became
SARFAESI ACT,2002.
.
ORDINANCE

7.  It means any matter expressed or described upon any
substance by means of letters, figures or marks, or by more
than one of those means, intended to be used, or which
may be used, for the purpose of recording that matter.
Example: A writing
is a document; Words printed,
lithographed or photographed are documents; A map or
plan is a document; An inscription on a metal plate or stone
is a document; A caricature is a document
 Documents legally enforceable.
Example: Marriage certificate, Partnership deed,
mortgage deed, sale deed, hypothecation deed, MOA,
AOA, Power of attorney.
Note: Law maker often confuses us as he uses document
word in Registration act 1908 while he uses Instrument
word in Indian stamp act 1899.
DOCUMENT
INSTRUMENT

8.  Supreme court order is binding on all lower courts.
 On subject matter of law the logic of decision by SC is
base for HC and other lower courts. They cannot go
contradictory to SC judgment.
 If on a matter Delhi HC has given a judgment
Rajasthan HC can give his own judgment. However
Delhi HC order is binding on Delhi district courts.
ORDER

9.  Internal rules and regulations of an entity.
Example AOA.
 Sec 9 of SCRA authorizes stock exchange to make
bye laws. NSE & BSE make their own bye laws.
 Sec 10 of SCA authorizes SEBI to make bye laws
of stock exchange i.e. SEBI has power to change
bye laws of Stock exchange
BYE-LAWS

10. PARTICULA
RS
RULES REGULATIONS
Framed by whom Ministry Self regulatory
organizations
Binding Nature They become
binding only after
being notified in OG
They become binding
only after being
notified in OG
Example MCA in
companies act
2013.
MOF in FEMA Act ,
1999
RBI IN FEMA 1999

11.  Rules/ Regulations/ Act is notified in Official gazette
through notifications. Each notification is given notification no and are
binding.
 Ministry time to time brings notification. Even the powers can be
delegated through notification. CG can delegate powers to
authorities.
 Trade notices can have different meaning under different acts
 The trade notice has a legitimate source of law and is binding on
the departmental officers concerned. If it is erroneous it should
be withdrawn/amended.
 Issued to lay down Procedural requirements of provisions of
Central Excise rules
NOTIFICATION
S
TRADE
NOTICES

12. LEGAL
INTERPRETATION
LEGAL
INTERPRETATION
DOCTRINAL
INTERPRETATION
Authenti
c
Authenti
c UsualUsual Grammatic
al
Grammatic
al
LogicalLogical
Basic Types of
Interpretations

13. LEGAL INTERPRETATIONLEGAL INTERPRETATION
AuthenticAuthentic UsualUsual
Interpretation
comes from
within the
section. We
have to be
within the
words.
Interpretation
comes from
within the
section. We
have to be
within the
words.
Interpretation
comes either from
earlier decided
case laws or from
some custom in
society.
Interpretation
comes either from
earlier decided
case laws or from
some custom in
society.

14. DOCTRINAL
INTERPRETATION
DOCTRINAL
INTERPRETATION
GrammaticalGrammatical LogicalLogical
As per plain
English grammar.
Example: and, or,
comma
As per plain
English grammar.
Example: and, or,
comma
When the court goes
beyond words to
discover the true
intention of the
statute.
When the court goes
beyond words to
discover the true
intention of the
statute.

15. .
PRIMARY RULESPRIMARY RULES SECONDARY
RULES
SECONDARY
RULES
1 Rule of Literal
Interpretation.
2 Rule of Reasonable
Interpretation.
3 Rule of Harmonious
Interpretation.
4 Rule of beneficial
Interpretation(Mischief rule)
5 Rule of Exceptional
Interpretation.
6 Rule of Ejusdem Generis.
1 Noscitor a Sociis.
2 Expressio Unis Est
Exclusio Alterius.
3 Contemporanea
Expositio.
4 Optima Legum
Interpres Consuetudo
RULES OF
INTERPRETATION

16. PRIMARY RULES
1. Rule of Literal Interpretation.
2. Rule of Reasonable Interpretation.
3. Rule of Harmonious Interpretation.
4. Rule of Beneficial Interpretation.
5. Rule of Exceptional Interpretation.
6. Rule of Ejusdem Generis.

17.  First impression that comes to the mind.
 No need to apply logic/ go for in-depth analysis.
 Read in their ordinary, natural and grammatical
meaning.
Applicability
 When the words are clear.
 Language is plain.
 Only 1 meaning is possible.
Non- Applicability
 When language is ambiguous.
 Meaning is absurd.
 Such interpretation defeats the purpose of statute.
Rule of Literal Interpretation.

18.  Also called Logical/Functional Interpretation.
 Understand the intention of the lawmaker.
 Interpretation must result in sensible meaning.
 To find out whether an activity is Ultra Vires MOA, the words of
the object clause shall be reasonably interpreted
 Applicability
 Literal interpretation meaning is absurd.
 Literal Interpretation is not possible.
 Non Applicability
 Meaning is absurd.
 Meaning is anomalous.
 Inconsistency.
 Injustice.
 Intention of law is unknown.
Rule of Reasonable Interpretation.

19. ICAI Vs PWC (1997)
 The council of ICAI referred a complaint of
professional misconduct to its Disciplinary
Committee. The rules provided that if the disciplinary
committee reports the respondents as guilty, the council
of ICAI could direct a further enquiry. If literal
interpretation is adopted, it would mean that council has
no power to direct further enquiry in case the DC
reports the respondents as non guilty. However, the
council of ICAI is a body superior to DC. It is charged
with the duty of maintaining discipline amongst its
members. Reasonable construction was applied and it
was held that council could direct further enquiry even if
the disciplinary committee had reported the respondents
as non guilty.

20.  When 2 or more provisions contradict, interpret so
as to give effect to both of them.
 If one overrides other the former prevails.
 If one is subject to other the latter prevails.
 If impossible to avoid inconsistency provisions which
are enacted or amended later in point of time shall
prevail.
 Applicability
When there is contradiction in 1 section.
 When there is contradiction between 2 sections
of the same act.
When there is contradiction between 2 sections
of different act.
Rule of Harmonious Interpretation.

21.  Also called as Mischief rule/Hayden rule/ Purposive
Interpretation
 Applicability
 On failure of Literal Interpretation
 Words used in statue are ambiguous
 Words are capable of more than 1 meaning.
 Following 4 matters shall be considered while
making interpretation under this rule
 What was old law before making of new act.
 What was mischief in the earlier law
 What is the remedy that the new law has provided
 What is the reason for providing the new remedy
Rule of Beneficial Interpretation.

23. 5A.) Common sense rule
5B.) Conjunctive & Disjunctive words
And/Or
 “And” is Conjunctive
 “Or” is Disjunctive
5C.) May/Shall
May is optional/recommendatory/Directory
Shall is mandatory
Rule of Exceptional Interpretation.

24.  General words following the specific words are to be
interpreted with reference to specific words that precede
them.
 Applicability
 There must be an enumeration of certain specific
words.
 The specific words contained must constitute a class or
a category.
 The general words must follow the specific words.
 Non Applicability
 If any condition is not satisfied
 If specific words follow general words
Rule of Ejusdem Generis

25. SECONDARY RULESSECONDARY RULES
1. Noscitor a Sociis
2. Expressio Unius Est
Exclusio Alterius
3. Contemporanea Expositio
4 Optima Legum Interpres
Consuetudo

26.  Meaning of a word is derived from its
associate words.
 The words in a statute are construed with
reference to the words found in immediate
connection with them.
 If two or more words which are capable of
analogous meaning are grouped together they
should be understood in cognate sense i.e. they
take their color from each other and are given a
similar or related meaning
Noscitur A Sociis

27.  Express mention of one thing implies the
exclusion of another
 Non applicability
 When meaning is clear
 Where exclusion is accidental
Expressio Unius Est Exclusio Alterius

28.  Interpreting a Statute or any other document by reference to the
description it has received from authority.
 Where the language is ambiguous, the court shall pay due regard
to the interpretation that the language of the act has received over
a long period of time.
 Accordingly Circulars, Clarifications and press notes issued by
Administrative authorities like DCA, CBDT should be used
interpretation of statute.
 No departure from accepted Interpretation: Interpretation accepted
and acted upon for a long time should not be altered. However, the
court may depart from the well accepted meaning if there are
compelling reasons to do so. Example. Where a provision is
capable of one interpretation only, the fact that a wrong meaning
was attached to it for many years will be immaterial and the court
shall construe the provision correctly.
CONTEMPORANEA EXPOSITO

29. Custom is the best interpreter of law.
OPTIMA LEGUM INTERPRES
CONSUETUDO

30. .
INTERNAL AID EXTERNAL AID
1. TITLE
2. PREAMBLE
3. HEADING & TITLE OF A
CHAPTER
4. DEFINITIONS
5. MARGINAL NOTES
6. PROVISO
7. EXPLANATIONS
8. ILLUSTRATIONS
9. SCHEDULES
1. HISTORICAL
SETTING
2. CONSOLIDATING
STATUTES &
PREVIOUS LAWS
3. USUAGES
4. REFERENCES TO
OTHER ACTS
5 DICTIONARY
6 JUDICIAL DECISIONS
7 CHANGES IN
TECHNOLOGY
AIDS OF
INTERPRETATION

31. INTERNAL AID
1. TITLE
2. PREAMBLE
3. HEADING AND TITLE OF A
“CHAPTER”
4. DEFINITIONS
5. MARGINAL NOTES
6. PROVISO
7. EXPLANATIONS
8. ILLUSTRATIONS
9. SCHEDULES

32. SHORT
TITLE
It merely identifies
the act so is
merely for
convenience
Example: IPC
SHORT
TITLE
It merely identifies
the act so is
merely for
convenience
Example: IPC
LONG TITLE
It describes the act. It is
now settled that long
title of an act is a part
of the act. We can
therefore refer it to
ascertain the object,
scope and purpose of
the act.
Example : Indian Penal
Code
LONG TITLE
It describes the act. It is
now settled that long
title of an act is a part
of the act. We can
therefore refer it to
ascertain the object,
scope and purpose of
the act.
Example : Indian Penal
Code
TITLE

33. • It expresses the scope, object and purpose of the act
more comprehensively than the long title.
• It and can legitimately be used for interpretation.
• It shows the primary intention of the law maker.
• If the language of the statute is not clear preamble can be
seen as an aid i.e. it is useful if words are ambiguous
• It states the reasons for creation of the act and the evil it
wants to suppress.
• Preamble cannot override the plain provisions of the act
PREAMBL
E

34.  A number of sections covering a particular
subject are grouped together in the form of a
chapter.
 Each Chapter is given a heading which represents
the subject matter dealt within the chapter.
 There are multiple views on heading, one view is
that heading is treated as a key to interpretations of
sections covered by it, the other view considers that
headings may be referred to only when enacting
words are ambiguous.
HEADING & TITLE OF A
CHAPTER

35.  In Indian Acts generally section 2 provides definition
 Definitions are generally of 3 types:
 Means … ( Exhaustive)
 Includes (Inclusive)
 Means and includes
DEFINITION
S

36.  Courts have given different views regarding use of marginal
notes.
 One view is that if words of a statute are ambiguous
Marginal notes can be used for interpretation. But marginal
notes cannot limit or restrict the meaning of clear words
used in the section.
 Generally held view is that marginal notes appended to
a section cannot be used for constructing the section.
Exception
Marginal notes appended to articles of constitution of
India have been held to be part of constitution and thus
it should be referred for interpretation”
MARGINAL
NOTES

37. Generally seen in 3 types
Provided that
Provided further that
Provided also that….. and this continues
Purpose of Proviso
To create exceptions in main body of sections.
Give a clarification.
Created for imposing additional conditions.
To make a substantive provision i.e. inserted to extend the
meaning of the main provision. And in such case it becomes
integral part of the statute.
For elaborating a new concept.
To give an explanation.
PROVISO

38.  It is appended to a section to explain the meaning of
the text of the section.
 It clarifies any ambiguity in the main section thus
making it more meaningful and purposeful.
 An explanation may be added to include
something within the section or to exclude
something from it.
 Explanations are given in schedules also and should be
so read as to harmonize with the section so that there is
no ambiguity.
 It is generally a clarification of the legislative mind.
 It is not a substantive provision. It cannot take away
statutory right given under the act or become hindrance
in the working of the act.
EXPLANATIONS

39.  Illustrations are examples appended to a section.
 They are inserted to clarify the scope and object of
the section.
 They form part of the statute.
 They are considered to be of relevant value in
interpreting the text of the section. However if there is
conflict between section and illustration, the section will
prevail.
 Not all sections have illustrations appended to them.
 Where the language of a section is likely to confuse
an ordinary reader, the legislature adds illustrations so
as to explain the purpose of the section.
ILLUSTRATIONS

40.  Mostly every act has schedules.Companies act
2013 has 7 Schedules
 Schedule form part of an act therefore they must
be read together with the act. A schedule may
contain substantive enactment which may even go
beyond the scope of a section.
 Two different sections can refer the same
schedule
 Important Note: If there appears to be any
inconsistency between the schedule and the main
act, main act shall always prevail
SCHEDULES

41. EXTERNAL AIDSEXTERNAL AIDS
1. HISTORICAL SETTING
2. CONSOLIDATING STATUTES &
PREVIOUS LAWS
3. USUAGES
4. REFERENCES TO OTHER ACTS
5 DICTIONARY
6 JUDICIAL DECISIONS
7 CHANGES IN TECHNOLOGY

42. It includes Parliamentary history, historical facts, report of
expert committee.
Two acts who are merged as well as previous laws can act as
an external aid
Example: GST
Custom//Rituals followed in the society
Example: Sapt padi
HISTORICAL SETTING
CONSOLIDATING STATUES & PREVIOUS
LAW
USUAGES

43.  Example: Consumer protection act 1986 and
Competition act 2002 have the same intention of
protecting consumers.
 It may also include reference to repealed or
deleted part of the act.
 Sometimes earlier act is explained by later
act
REFERENCE TO OTHER ACTS

44.  Legal dictionary
 Oxford dictionary/Normal English Dictionary
First act should be referred for meaning of any word/
expression, if not defined in act then find it in general
sense.
DICTIONARY

45.  Reference to Indian decisions
 Reference to Foreign decisions:
 Countries following same system of jurisprudence
as ours and the foreign decisions has been given
on same law as ours.
 Priority is Indian decisions
JUDICIAL DECISIONS

46.  A statute must be interpreted as per the current law.
Example:
When Indian evidence act 1872 came into force
handwriting did not include typewriting because that
time Typewriter had not came into existence. However
now it should be given due consideration and technology
should be given due weightage.
CHANGES IN TECHNOLOGY