ICAI Notes: The General Clauses Act, 1897 | Corporate & Other Laws for CA Intermediate PDF Download

 Page 1


 
 
LEARNING OUTCOMES 
a
    
 
CHAPTER 
1 
 
THE GENERAL 
CLAUSES ACT, 1897 
 
 
 
 
At the end of this Chapter, you will be able to: 
? Explain the purpose of the General Clauses Act. 
? Acquire some basic understanding of the legislation. 
? Know the general definitions under the Act. 
? Identify general rules of construction. 
? Explain powers as to orders, rules etc. made under 
enactments. 
? Gain knowledge of other miscellaneous provisions. 
 
 
  
© The Institute of Chartered Accountants of India
Page 2


 
 
LEARNING OUTCOMES 
a
    
 
CHAPTER 
1 
 
THE GENERAL 
CLAUSES ACT, 1897 
 
 
 
 
At the end of this Chapter, you will be able to: 
? Explain the purpose of the General Clauses Act. 
? Acquire some basic understanding of the legislation. 
? Know the general definitions under the Act. 
? Identify general rules of construction. 
? Explain powers as to orders, rules etc. made under 
enactments. 
? Gain knowledge of other miscellaneous provisions. 
 
 
  
© The Institute of Chartered Accountants of India
a
 
 
 
CORPORATE AND OTHER LAWS 
1.2 
 
 
 
1. INTRODUCTION 
Why we study General Clauses Act? 
The General Clauses Act, 1897 (Act) was enacted on 11
th
 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. 
THE GENERAL 
CLAUSES ACT, 1897
Preliminary [Section 1]
General Definitions [Sections 3 to 4A]
General Rules of Construction [Sections 5 to 13]
Powers & Functionaries [Sections 14 to 19]
Provisions as to orders, rules etc. made under 
enactments [Sections 20 to 24]
Miscellaneous [Sections 25 to 30]
CHAPTER OVERVIEW 
 
© The Institute of Chartered Accountants of India
Page 3


 
 
LEARNING OUTCOMES 
a
    
 
CHAPTER 
1 
 
THE GENERAL 
CLAUSES ACT, 1897 
 
 
 
 
At the end of this Chapter, you will be able to: 
? Explain the purpose of the General Clauses Act. 
? Acquire some basic understanding of the legislation. 
? Know the general definitions under the Act. 
? Identify general rules of construction. 
? Explain powers as to orders, rules etc. made under 
enactments. 
? Gain knowledge of other miscellaneous provisions. 
 
 
  
© The Institute of Chartered Accountants of India
a
 
 
 
CORPORATE AND OTHER LAWS 
1.2 
 
 
 
1. INTRODUCTION 
Why we study General Clauses Act? 
The General Clauses Act, 1897 (Act) was enacted on 11
th
 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. 
THE GENERAL 
CLAUSES ACT, 1897
Preliminary [Section 1]
General Definitions [Sections 3 to 4A]
General Rules of Construction [Sections 5 to 13]
Powers & Functionaries [Sections 14 to 19]
Provisions as to orders, rules etc. made under 
enactments [Sections 20 to 24]
Miscellaneous [Sections 25 to 30]
CHAPTER OVERVIEW 
 
© The Institute of Chartered Accountants of India
 
   
THE GENERAL CLAUSES ACT, 1897 
 
a
    
 
1.3 
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) 
2. 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. 
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. 
Purpose- 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 Institute of Chartered Accountants of India
Page 4


 
 
LEARNING OUTCOMES 
a
    
 
CHAPTER 
1 
 
THE GENERAL 
CLAUSES ACT, 1897 
 
 
 
 
At the end of this Chapter, you will be able to: 
? Explain the purpose of the General Clauses Act. 
? Acquire some basic understanding of the legislation. 
? Know the general definitions under the Act. 
? Identify general rules of construction. 
? Explain powers as to orders, rules etc. made under 
enactments. 
? Gain knowledge of other miscellaneous provisions. 
 
 
  
© The Institute of Chartered Accountants of India
a
 
 
 
CORPORATE AND OTHER LAWS 
1.2 
 
 
 
1. INTRODUCTION 
Why we study General Clauses Act? 
The General Clauses Act, 1897 (Act) was enacted on 11
th
 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. 
THE GENERAL 
CLAUSES ACT, 1897
Preliminary [Section 1]
General Definitions [Sections 3 to 4A]
General Rules of Construction [Sections 5 to 13]
Powers & Functionaries [Sections 14 to 19]
Provisions as to orders, rules etc. made under 
enactments [Sections 20 to 24]
Miscellaneous [Sections 25 to 30]
CHAPTER OVERVIEW 
 
© The Institute of Chartered Accountants of India
 
   
THE GENERAL CLAUSES ACT, 1897 
 
a
    
 
1.3 
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) 
2. 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. 
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. 
Purpose- 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 Institute of Chartered Accountants of India
a
 
 
 
CORPORATE AND OTHER LAWS 
1.4 
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
1
 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 . 
3. 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 15
th
 August, 1947 and 
the 26th January, 1950;  
 
1
 French- Right of taking. The right of persons to share in the land owned by another. A profit 
a prendre enables a person to take part of the soil or produce of land that someone else 
owns. 
© The Institute of Chartered Accountants of India
Page 5


 
 
LEARNING OUTCOMES 
a
    
 
CHAPTER 
1 
 
THE GENERAL 
CLAUSES ACT, 1897 
 
 
 
 
At the end of this Chapter, you will be able to: 
? Explain the purpose of the General Clauses Act. 
? Acquire some basic understanding of the legislation. 
? Know the general definitions under the Act. 
? Identify general rules of construction. 
? Explain powers as to orders, rules etc. made under 
enactments. 
? Gain knowledge of other miscellaneous provisions. 
 
 
  
© The Institute of Chartered Accountants of India
a
 
 
 
CORPORATE AND OTHER LAWS 
1.2 
 
 
 
1. INTRODUCTION 
Why we study General Clauses Act? 
The General Clauses Act, 1897 (Act) was enacted on 11
th
 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. 
THE GENERAL 
CLAUSES ACT, 1897
Preliminary [Section 1]
General Definitions [Sections 3 to 4A]
General Rules of Construction [Sections 5 to 13]
Powers & Functionaries [Sections 14 to 19]
Provisions as to orders, rules etc. made under 
enactments [Sections 20 to 24]
Miscellaneous [Sections 25 to 30]
CHAPTER OVERVIEW 
 
© The Institute of Chartered Accountants of India
 
   
THE GENERAL CLAUSES ACT, 1897 
 
a
    
 
1.3 
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) 
2. 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. 
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. 
Purpose- 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 Institute of Chartered Accountants of India
a
 
 
 
CORPORATE AND OTHER LAWS 
1.4 
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
1
 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 . 
3. 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 15
th
 August, 1947 and 
the 26th January, 1950;  
 
1
 French- Right of taking. The right of persons to share in the land owned by another. A profit 
a prendre enables a person to take part of the soil or produce of land that someone else 
owns. 
© The Institute of Chartered Accountants of India
 
   
THE GENERAL CLAUSES ACT, 1897 
 
a
    
 
1.5 
(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.  
Application of 
the GC Act
Acts of the Indian Parliament 
Acts of the Dominion
Legislature
Acts passed before the
commencement of the
Constitution by the Governor
© The Institute of Chartered Accountants of India