Interpretation of Statues

Q.1 What do you understand by Interpretation? What are its chief features? The term has been derived from the Latin term ‘interpretari’, which means to explain, expound, understand, or to translate. Interpretation is the process of explaining, expounding and translating any text or anything in written form. This basically involves an act of discovering the true meaning of the language which has been used in the statute. Various sources used are only limited to explore the written text and clarify what exactly has been indicated by the words used in the written text or the statutes. Interpretation of statutes is the correct understanding of the law. This process is commonly adopted by the courts for determining the exact intention of the legislature. Because the objective of the court is not only merely to read the law but is also to apply it in a meaningful manner to suit from case to case. It is also used for ascertaining the actual connotation of any Act or document with the actual intention of the legislature. There can be mischief in the statute which is required to be cured, and this can be done by applying various norms and theories of interpretation which might go against the literal meaning at times. The purpose behind interpretation is to clarify the meaning of the words used in the statutes which might not be that clear. According to Salmond, “Interpretation”  is the process by which the court seeks to ascertain the meaning of the legislature through the medium of authoritative forms in which it is expressed. Need and Object of Interpretation Salmond directed that, “Interpretation or construction is the process by which the Court’s seek to ascertain the meaning of the legislature through the medium of authoritative forms in which it is expressed.” Lord Denning commented on the need of interpretation in Seasford Court Estates Ltd. v. Asher. He said that it is not within an ordinary man’s power to realise what new facts will arise from a case at hand. Considering the facts, all laws cannot be free from ambiguity when applied to them. There can be no legislature or judge that can make a perfect law written in perfect English for ordinary people to understand and not get criticized. Therefore, interpretation of a law is very important as what one writes can be converted into various meanings and various judgments. A judge should ask himself the question: If the makers of the Act had themselves come across this luck in the texture of it, how would they have straight ended it out? He must then do as they would have done. A judge must not alter the material of which it is woven, but he can and should iron out the creases. Need for interpretation The ambiguity of the words used in the statute: Sometimes there will be words that have more than one meaning. And it may not be clear which meaning has to be used. There could be multiple interpretations made out of it.  Change in the environment: We all know that society changes from time to time and there may be new developments happening in a society that is not taken into consideration, this lacks the predictability of the future event. Complexities of the statutes: usually statutes are complex and huge, it contains complicated words, jargon and some technical terms which are not easy to understand and this complexity may lead to confusion. When legislation doesn’t cover a specific area: Every time when legislations are out it doesn’t cover all the area it leaves some grey areas and interpretation helps in bridging the gaps between. Drafting error: The draft may be made without sufficient knowledge of the subject. It may also happen due to the lack of necessary words and correct grammar. This makes the draft unclear and creates ambiguity in the legislature. Incomplete rules: There are few implied rules and regulations and some implied powers and privileges which are not mentioned in the statute and when these are not defined properly in the statute this leads to ambiguity. General Principles of Interpretation When the intention of legislature is not clearly expressed, a court needs to interpret the laws using the rules of interpretation. There are two types of Rules of Interpretation with sub-categories: Primary Rules The Primary Rule: Literal Interpretation 2. The Mischief Rule: Heydon’s Rule Rule of Reasonable Construction or Ut Res Magis Valent Quam Pareat 3.Rule of Harmonious Construction Rule of Ejusdem Generis Other Rules Expressio Units Est Exclusio Alterius Contemporanea Expositio Est Optima Et Fortissima in Lege Noscitur a Sociis Strict and Liberal Construction Some Important Points to be taken care of in the context of interpreting Statutes: The intention of the legislature. The statute must be read as a whole in its Context. The statute should be construed so as to make it Effective and Workable – if a statutory provision is ambiguous and capable of various constructions, then that construction must be adopted which will give meaning and effect to the other provisions of the enactment rather than that which will give none. If meaning is plain, the effect must be given to it irrespective of consequences. The process of construction combines both literal and purposive approaches. The purposive construction rule highlights that you should shift from literal construction when it leads to absurdity. Scope and Nature of Interpretation The necessity of interpretation would arise only where the language of a statutory provision is ambiguous, not clear or where two views are possible or where the provision gives a different meaning defeating the object of the statute. If the language is clear and unambiguous, no need for interpretation would arise. In this regard, a Constitution Bench of five Judges of the Supreme Court in R.S. Nayak v A.R. Antulay, has held: The purpose of Interpretation of Statutes is to help the Judge to ascertain the intention of the Legislature – not to control that intention or to confine it within the limits, which the Judge may deem reasonable or expedient. The correct is one that best harmonises the words with the object of the statute. As stated by Iyer J. “to be literal in meaning is to see the skin and miss the soul. The judicial key of construction is the composite perception of the deha and the dehi of the provision. According to Blackstone the fairest and rational method for interpreting a statute is by exploring the intention of the Legislature through the most natural and probable signs which are ‘either the words, the context, the subject-matter, the effects and consequence, or the spirit and reason of the law’ Q.2 Discuss the principals of interpretation of statutes affection jurisdiction of court. Q.3 What are the various kind of statue? Explain. What is Statute -  A Statue means any Law, Act, Enactment. The Parliament is given authority of Lawmaking. According to Blacks Dictionary,  "A  Statute is a formal written enactment of Legislative authority that governs a country, state, city or county. In Simple words, it is the Law, Enactment, Act. According to Gray, The process by which a Judge (or indeed any person, lawyer or layman who has occasion to search for the meaning of a statute) constructs from the words of Statute book a meaning which he either believes to be that of a legislature or which he proposes to attribute to it, is called interpretation. According to Subba Rao J. "Interpretation is the method by which the true sense or the meaning of the word is understood." (The State of Jammu and Kashmir V. Thakur Ganga Singh, 1960 2SCR 346) What are Types of Statutes  There are Several Types of Statutes, Such as Temporary Statute, Perpetual Statute, Consolidating Statute, Codifying Status, Fiscal Statute, Remedial Statute, Penal Statute, Declaratory Statute.  Generally, Statute can be classified with reference to its duration, Method, Object, and extent of Application. Classification Of Statute/Types of Statutes are as follows -  Statutes can be classified by object, by method, by reference to duration  1) Classification by object -   a) Declaratory Statutes -  Declaratory Statute may be defined as an Act to remove doubts existing as to the common law, or the meaning or effect of any Statute such Acts are held to be retrospective. This may happen for, instance, where the courts have been interpreting a particular expression as connoting a specific meaning which in the opinion of the legislature is a wrong notion of the expression. In such case, the legislature may pass a declaratory statute declaring the correct meaning of that expression thereby setting aside the controversy regarding the correct meaning of the expression.meaning of the expression.meaning of the expression.  b) Codifying and consolidating Statutes - i) Codifying Statutes - A Codifying Statute is a Statute which presents a detail authoritative statement of the rules of law on a given subject. The object is not merely to declare the law upon some particular subject but to declare it in the form of code. Example -  Civil Procedure Code 1908,  The Hindu Marriage Act 195 The Hindu Succession act 19556. ii) Consolidating Statutes -  Consolidating Statute it is a Statute which presents the whole body of statutory law on the subject in complete form repealing the former Statute. It is a Statute which consolidated laws on a particular subject at one place. The main purpose of the consolidating statute is to present the whole body of statutory law on a subject in complete form repealing the former statute.  Example -  Arbitration and conciliation act 1996,  c) Remedial statute - Remedial Statutes are those statutes which provide the remedy for a wrongful act in the form of damages or compensation to the aggrieved party but do not make a wrongdoer liable for any penalty.  This types of Statute are beneficial to the weaker section of the society.  They are directed towards extending a certain benefit to the particular class of society... Therefore they are also called as welfare legislation, for example, industrial dispute act 1947 workmen compensation act 1923, Consumer Protection Act 1986. Examples - Workmen's Compensation Act 1923, Maternity Benefit Act 1961 Consumer Protection Act 1986, Industrial Dispute Act 1947. d) Enabling statute -   Enabling statute is a Statute Which enables something to be done. It basically gives the power to do something. According to Craies, "many statutes have been passed to enable something to be done which was previously forbidden by law, with or without prescribing the way it is to be done.  e)  Amending Statute -  As we all know, Amendment means a change in the existing law. A law is amended when it is in whole or in part permitted to remain and something is added to or taken away from it or it is some way changed or altered to make it more complete or perfect or make it suitable to accomplish the purpose for which it was made. f)  Repealing Statute - Repealing Statute is a Statute which repeals Statute which already exists. Example - The Code of Criminal Procedure,1973 repealed and reenacted Criminal Procedure Code 1898. g)  Taxing Statute -  A tax is imposed for the public purpose for raising general revenue of the state. A taxing statute is to be strictly construed. According to Lord Halsbury and Lord Simonds stated,  "The subject is not to be taxed without clear words for that purpose; and also that every Act of Parliament must be read according to the natural construction of its words."  h)  Penal Statute A penal statute is one which Punishes certain acts or wrong.  Such Statute may be in the form of a comprehensive criminal code or large number of sections providing punishment for different wrongs for example - Criminal Procedure Code, Indian Penal Code etc. The penalty for disobedience may be in the form of fine, forfeiture of property, imprisonment, death sentence etc. 2) Classification by method -  a) Mandatory or Directory Statute -  i) Mandatory Statute - A Mandatory statute may be defined as one whose provisions or requirements, if not complied with, will render the proceedings to which it relates illegal and void. ii) Directory Statute - A directory statute is one where noncompliance will not invalidate the proceedings to which it relates.  3) Classification by reference to duration -  a) Temporary and Permanent/Perpetual Statute - i)  Temporary Statute - This type of statutes are Statutes which are in existence for a known Period such Statutes are called Temporary Statute. Life period of Statute is Fixed.  In simple words this type of Statute, the period of operation is fixed by the statute itself the statute is temporary in nature. ii) Permanent/ Perpetual Statute -  When no time period is fixed the statute is permanent in nature.  The dictionary meaning of the term 'perpetual' is forever.  Therefore perpetual Statutes are those which remain in force forever. These Statutes comes to an end only when they are abolished by the legislature itself by way of enacting another Statute.  Q.4 What is the presumption of law ? What is the importance of presumption in favour of constitutionality? Discuss. There are three types of presumptions under the Indian Evidence Act 1872. Section 4 provides these threes types of presumptions namely , may presume shall presume, and conclusive proof. "May presume"  Whenever it is provided by this Act that the Court may presume a fact, it may either regard such fact as proved, unless and until it is disproved, or may call for proof of it. “Shall presume” Whenever it is directed by this Act that the Court shall presume a fact, it shall regard such fact as proved, unless and until it is disproved. “Conclusive proof” – Where one fact is declared by this Act to be conclusive proof of another, the Court shall, on proof of the one fact, regard the other as proved, and shall not allow evidence to be given for the purpose of disproving it. Meaning : Presume means "supposed to be".  In the absence of absolute certainty, we resort  to presumptions. The word 'presumption means 'an inference from known facts. Definition : Presumption can be defined as "an idea that is taken to be true on the basis of probability" or " a belief . Some presumptions are rebuttable whereas some presumptions are irrebutable. Examples:  1)  X finds Y's Bike in front of a restaurant The,  X may presume that Y is in the Restaurant. When X entered into the restaurant, he found Y, then his presumption is correct/ true. Instead of Y if Z (Y's brother) is found X's presumption is incorrect. Thus presumptions may be true or untrue. In other words presumptions may be rebuttable or irrebutable. General Classification of Presumption:- The traditional approach of common law system has classified presumption only under two categories that are a presumption of law and presumption of facts. 1) Presumption of Facts- Presumptions of facts are those inferences that are naturally and reasonably concluded on the basis of observations and circumstances in the course of basic human conduct. These are also known as material or natural presumptions. Natural Presumptions are basically instances of circumstantial evidence as it is believed that it is very good to act in the course of reasoning where much inferences can be easily concluded from other evidence otherwise it will keep much ambiguity on the legal system because it will be much more difficult because of the legal system to prove every fact to capture the offenders or law conflicted member of the society. Natural Presumptions are generally rebuttable in nature. There are few provisions that are directly expressing about Natural Presumptions such as Section 86- 88, Section 90, Section 113A, Section 113 B of Indian Evidence Act. Where Section 113A & 113 B are one of the most important provisions of presumptions under this Act, whereas Section 86 talk about certified copies of foreign judicial records, Section 87 expresses presumption of Books, Maps and Charts, Section 88 deals with presumption related to Telegraphic Messages, Section 90 deals with documents aged thirty years old, whereas Section 113 A deals with hardcore crime that is Presumption as to abatement of suicide by a married women and Section 113 B deals with the presumption as to dowry death. Under the Presumptions of Facts, the concept of ‘shall presume’ is utilized. And by the concept, the court will presume that a fact ascertained before them are proven facts until and unless they are proven disproved by the accused. The concept of ‘shall presume’ expresses that the courts are bound to maintain and recognise some facts as proven by making a mandatory presumption and the court has to consider them as completely proven until such presumption are challenged and disapproved. When these presumptions are disproved by the challenging party then the court has no discretion on maintaining such presumptions. 1.1) Few Conditions Where Court May Use the Presumption of Facts To Ascertain Some Facts:- Foreign Judicial Records- Section 86 explains the principle that the court has the discretionary power to make presumptions with respect to the originality and accuracy of the certified copies of a different foreign country’s judicial records and the called document should be consistent with the local or domestic rules. The presumption explained under this Section has a very significant role, therefore, should be complied with it. It is also observed that if the court does not feel that the foreign judgments are not consistent with the local laws then these judgments lose the evidentiary values in the court. Abetment as to Suicide by a Married Women- Section 113A deals with the presumptions of abetment of suicide of a married woman either by her husband or any of his relatives. The court has mentioned few essentials to check that whether a suicide executed by married women is inconsistent with the essentials mentioned under the provision, and if they are consistent to it then the court in such cases will presume that such suicide has been abetted either by the husband or his relative. The essentials of this provision are: (i) The incident of suicide was committed within a period of seven years from the date of her marriage; and (ii) Her husband, or his relative, has subjected her to cruelty as according to the Section 498A of IPC. Presumption of Law- Presumptions of law are such inferences and beliefs which are established or assumed by the law itself. It can further be divided into rebuttable presumptions of law and irrebuttable presumptions of law. Rebuttable Presumptions (praesumptio iuris tantum): Rebuttable Presumptions are certain presumption which is regarded as evidence of good quality and does not lose their quality until proven contrary to the presumption. Although it does not easily measure the extent of such presumption as their validity only exists until they are not proven wrong. The basic example of rebuttable presumptions can be- if a person who is in possession of some stolen property than it is quite obvious that he can either be a thief or a receiver. Matrimonial offences are one of the best examples to explain any presumption because in such offence the possibility of getting evidence is nearly low as these offences that take place within the closed area of matrimonial house. Hence the presumption is very important in such cases/offences. There are broadly three important provisions regarding the presumption in matrimonial offences which are: Presumption as to abetment of suicide by a married woman within seven years of marriage covered under Section 113A of Indian Evidence Act. Presumption as to dowry death within seven years of marriage covered under Section 113B of Indian Evidence Act. Birth during the marriage is the conclusive proof of legitimacy covered under Section 112 of the Indian Evidence Act. In, Shantiv. State of Haryana [4], the in-laws of the bride did not allow her to visit her maternal house to meet her parents, and when the bride’s parents came to meet her they were not permitted to enter the house and complained to them about the amount of dowry that the demand of scooter & TV was not fulfilled. Soon after the incident, the wife of the accused suffered an unnatural death. The Supreme Court allowed the presumption stated under Section 113B of Indian Evidence Act as the death was caused within seven years of marriage and that too just after such incident prohibited under this Act, and on the basis of applications of this Section one of the in-laws was convicted for causing dowry death. Ir-rebuttable Presumption (praesumptio iuris et de iure)- Such presumptions cannot be ruled out by any additional probative evidence or argument. Therefore the presumption explained comes under the roof of conclusive presumption which cannot be proven contrary. Eg. A child under the age of seven years is presumed that he is not capable of committing any crime. 2.1) Few Conditions Where Court May Use the Presumption of Law To Ascertain Some Facts: Presumption of Innocence (ei incumbit probatio qui dicit, non qui negat)- According to this legal maxim, the burden of proof is with the person who declares the facts, not the person who denies the fact. The presumption of innocence is the legal principle which means every person should be considered as an innocent person unless it is proven guilty or until court believes that the person is in charge of acts prohibited under law. In, Chandra Shekhar v. State of Himachal Pradesh the High Court made great observations and mentioned that freedom of any individual is the prime objective of the constitution and such right cannot be dissolved by any means unless provided by the law itself. It is concluded that unless the person is proved guilty he must be presumed as innocent. In, Dataram Singh v. State of Uttar Pradesh & anr., the Supreme Court said that a person should be presumed and believed to be innocent unless proven guilty. Presumption of Death- The presumption of death is explained under Section 107 and 108 of Indian Evidence Act which refers to a situation when a person has disappeared for many years, and after such situations the law presumes him to be dead.Section 108 of this Act describes the amount or the tenure i.e. 7 years, where, there should be no proof of the existence of the person in the society. In Balambal v. Kannammal [8], the court held that the presumption of death could only be invoked if the death or inexistence of that person is proved when the presumption is raised in the court and no person can utilise such presumption for generating any type of death record of the called person. In T.K Rathnam v. K. Varadarajulu [9], the dissenting opinion of the learned judge explains in his judgment that the presumption of the existence of the person or death of the person is always rebuttable. He also observed that the accurate timing of death is not a matter of presumption rather it is a matter of evidence. Presumption of Constitutionality- The presumption of constitutionality refers to a concept that all statutes, bills, policies, guidelines etc., drafted by different levels of governments are consistent with the constitutional requirements. The court generally presumes that the statues are meeting the constitutional requirements’ and are helping in achieving the constitutional objective. But the person, who interprets these statues in such a manner which makes such statues contrary to constitutional requirements, then has to prove the same. Doctrine of Presumption of Constitutionality The term ‘presumption of constitutionality’ is a legal principle that is used by courts during statutory interpretation — the process by which courts interpret and apply a law passed by the legislature, such as Parliament. In the 1992 Supreme Court case ‘ML Kamra v New India Assurance’, Justice K Ramaswamy said: “The court ought not to interpret the statutory provisions, unless compelled by their language, in such a manner as would involve its unconstitutionality. The legislature of the rule making authority is presumed to enact a law which does not contravene or violate the constitutional provisions. Therefore, there is a presumption in favour of constitutionality of a legislation or statutory rule unless ex facie it violates the fundamental rights guaranteed under Part III of the Constitution. If the provisions of a law or the rule is construed in such a way as would make it consistent with the Constitution and another interpretation would render the provision or the rule unconstitutional, the Court would lean in favour of the former construction. ” (“ex facie” meaning ‘on the face’) When does this apply? It is a cardinal principle of construction that the Statute and the Rule or the Regulation must be held to be constitutionally valid unless and until it is established they violate any specific provision of the Constitution. Further it is the duty of the Court to harmoniously construe different provisions of any Act or Rule or Regulation, if possible, and to sustain the same rather than striking down the provisions out right. The presumption is not absolute, however, and does not stand when there is a gross violation of the Constitution. Limitations to the doctrine A three-judge Bench in ‘NDMC v State of Punjab’ (1996) spoke of the limitations to the doctrine. The Bench observed that the Doctrine is not one of infinite application; it has recognised limitations. The Court has consistently followed a policy of not putting an unnatural and forced meaning on the words that have been used by the legislature in the search for an interpretation which would save the statutory provisions. Q.5 Discuss the rule laid down in “Heydon’s case Refer to decided case. Heydon (1584) 76 ER 637, is a landmark English case that first used the mischief rule for interpretation of statutes. According to this rule, while interpreting statutes, first the problem or mischief that the statute was designed to remedy should be identified and then a construction that suppresses the problem and advances the remedy should be adopted. However, this rule of construction is of narrower application than the golden rule or the plain meaning rule, as it can only be used to interpret a statute and, strictly speaking, only when the statute was passed to remedy a defect in the common law. Heydon's Case (1584) 76 ER 637 is considered a landmark case as it was the first case to use what would come to be called the mischief rule for statutory interpretation. The mischief rule is more flexible than the golden or literal rule, in that the mischief rule requires judges to look over four tasks to ensure that gaps within the law are covered. Facts of the case This is a construction of leases, life estates, and statutes.Ottery College, a religious college, gave a tenancy in a manor also called Ottery to a man (named in the case report simply as "Ware") and his son, also referred to as Ware.The tenancy was established by copyhold. Ware and his son held their copyhold for their lives, subject to the will of the lord and the custom of the manor. The Wares’ copyhold was part of a parcel also occupied by some tenants at will. Later, the college leased the same parcel to another man, named Heydon, for a period of eighty years in return for rents equal to the traditional rent for the components of the parcel.Less than a year after the parcel had been leased to Heydon, Parliament enacted the Suppression of Religious Houses Act 1535 (Act of Dissolution). The statute had the effect of dissolving many religious colleges, including Ottery College, which lost its lands and rents to Henry VIII. However, a provision in the Act kept in force, for a term of life, any grants that had been made more than a year before the enactment of the statute. The Court of Exchequer found that the grant to the Wares was protected by the relevant provision of the Act of Dissolution, but that the lease to Heydon was void. Significance of the case The ruling was based on an important discussion of the relationship of a statute to the pre-existing common law. The court concluded that the purpose of the statute was to cure a mischief resulting from a defect in the common law. Therefore, the court concluded, the remedy of the statute was limited to curing that defect. Judges are supposed to construe statutes by seeking the true intent of the makers of the Act, which is presumed to be pro bono publico, or intent for the public good. Lord Coke described the process through which the court must interpret legislation. For the sure and true interpretation of all statutes in general (be they penal or beneficial, restrictive or enlarging of the common law), four things are to be discerned and considered: (1st). What was the common law before the making of the Act? (2nd). What was the mischief and defect for which the common law did not provide. (3rd). What remedy the Parliament hath resolved and appointed to cure the disease of the commonwealth. And, (4th). The true reason of the remedy; and then the office of all the judges is always to make such construction as shall suppress the mischief, and advance the remedy, and to suppress subtle inventions and evasions for continuance of the mischief, and pro privato commodo, and to add force and life to the cure and remedy, according to the true intent of the makers of the Act, pro bono publico. Q.6 Discuss the limitation of “Rules of Strict Constitution of Taxing Statute. Strict construction : A tax is imposed for public purpose for raising general revenue of the state. A taxing statute is to be strictly construed. Lord Hasbury and Lord Simonds stated : "The subject is not to be taxed without clear words for that purpose; and also that every Act of Parliament must be read according to the natural construction of its words." It is settled law that a taxation statute in particular has to be strictly construed and there is no equity in a taxing provision. H.H. Lakshmi Bai v/s. CIT - [(1994) 206 ITR 688, 691 (SC)]. “The subject is not to be taxed without clear words for that purpose …..” CIT vs. Provident Inv. Co. Ltd. (1954) 32 ITR 190 (SC) , J.K. Steel Ltd. vs. UOI AIR 1970 SC 1173 , Hansraj & Sons vs. State of J & K (2002) 6 SCC 227, 237-39 In A.V. Fernandez v/s. State if Kerala, [AIR 1957 SC 657] His Lordship Bhagwati J. has stated the principle of taxing laws as follows : “ In construing fiscal statutes and in determining the liability of a subject to tax one must have regard to the strict letter of law. If the revenue satisfies the court that the case falls strictly within the provisions of the law, the subject can be taxed. If, on the other hand, the case is not covered within the four corners of the provisions of the taxing statute, no tax can be imposed by inference or by analogy or by trying to probe into the intentions of the legislature and by considering what was the substance of the matter." In Associated Cement Co. Ltd. Vs. Commercial Tax Officer AIR 1981 SC 1887, E.S. Venkataramiah J. of the Supreme Court, speaking for the majority said "Tax, interest and penalty are three different concepts. Tax becomes payable by an assessee by virtue of the charging provision in a taxing statute. Penalty ordinarily becomes payable when it is found that an assessee has wilfully violated any of the provisions of the taxing statute. Interest is ordinarily claimed from an assessee who has withheld payment of any tax payable by him and it is always calculated at the prescribed rate on the basis of the actual amount of tax withheld and the extent of delay in paying it. It may not to be wrong to say that such interest is compensatory in character and not penal." Remedial statutes are known as welfare, beneficial or social justice oriented legislations. Penal statutes, on the other hand, are those which provide for penalties for contravention of the law and are directed against the offender in relation to the state by making him liable to imprisonment, fine, forfeiture or other penalty.  Principle of Strict Construction The manner in which the Income-Tax Act has been drafted leaves great scope for litigation. For this purpose, principles of interpretation have to be applied. These principles themselves are not infallible and would depend on the facts of each case. The two well-settled principles of interpretation, as applicable in taxing statutes, are: (1) There is no equity in tax, and the principle of strict or literal construction applies in interpreting tax statutes. Hence, on the plain language of the statute, if the assessee is entitled to two benefits, he has to be granted both these benefits; and (2) If there are two reasonable interpretations of taxing statutes, the one that favors the assessee has to be accepted. The principle of strict interpretation of taxing statutes was best enunciated by Rowlatt J. in his classic statement in Cape Brandy Syndicate v I.R.C. (1 KB 64, 71): "In a taxing statute one has to look merely at what is clearly said. Rule of Interpretation applicable to Taxation Statute Taxation statute is a fiscal statute which imposes the pecuniary burden on the taxpayer. So such statutes are construed strictly. Plain, clear and direct grammatical meaning is given. Where there are two possible outcomes then that interpretation is given which is in favour of assessee.  Any taxation statute involves three stages firstly, the subject on which tax is levied or imposed, secondly, the assessment of the liability of assessee and lastly, the recovery once the assessment is made. The first stage is where charging provisions of the act are involved. These charging provisions must be clearly provided in the statute. These charging provisions provide the extent and coverage of the subjects as to whom the tax is applicable. It also provides the outline in form of subjects which the legislature wants to cover under the law. Charging provisions are to be interpreted strictly as it results in financial burden. There cannot be any ambiguity and meaning which is clear, obvious, direct is given. Nothing can be inferred to substantiate the intention of the legislature or purpose for which the law was made. Once the revenue shows that particular subject is covered by law then tax is applicable for all those subjects. But if it fails to proof then no tax can be imposed by extending the meaning. Principal of equity has no role to play in case of taxation law. It is because there is lot of deeming legal fiction involved in tax laws. Thus, whatever is written must be strictly followed without considering its justness. If the words are clear, then court has to give that meaning irrespective of consequences it resulted into or in other words even if such construction is unequitable, then also Court is bound due to legal fiction. Court cannot meet the deficiency by extending the provisions of the statute. It is duty of the legislature to rectify it through amendments.  In a Taxation statute, if a word has a clear meaning, then in that case, the court is bound to follow the clear meaning even if such meaning results in absurd results. The case of State of Uttar Pradesh v. Kores India Ltd. (AIR 1977 SC 132) is relevant. In this case, the issue was pertaining to inclusion of carbon paper in the definition of word “paper”. It was held by the Hon’ble Supreme Court that in common parlance word paper is one which is used for writing, packaging and printing whereas carbon paper is used entirely for different purpose. Moreover, manufacturing process of carbon paper is entirely different and complicated from that of normal paper. So, Court held carbon paper will not be included in normal paper so as to make it subject to taxation. It was held that meaning of paper is quiet clear and there is no need to interpret it so as to extend its meaning to include carbon paper. In the case of C.I.T. v B. M. Kharwar, The assessee transferred some machinery of a firm to a private limited company. He sought to avoid the liability to be taxed on the excess realised over the written down value of the machinery on the plea that the substance of the transaction was only a step to readjust the business relation of the partners inter se. The Supreme Court rejected this contention holding that while the taxing authorities were entitled to determine the true legal relation resulting from a transaction to unravel the device adopted by a party, the legal effect of a transaction could not be displaced by probing the "substance of the transaction". Exemption Clause - Strict Construction Exemption Clause - Strict Construction The law is well settled that a person who claims exemption or concession has to establish that he is entitled to that exemption or concession. A provision providing for an exemption, concession or exception, as the case may be, has to be construed strictly with certain exceptions depending upon the settings on which the provision has been placed in the Statute and the object and purpose to be achieved. If exemption is available on complying with certain conditions, the conditions have to be complied with. The mandatory requirements of those conditions must be obeyed or fulfilled exactly, though at times, some latitude can be shown, if there is a failure to comply with some requirements which are directory in nature, the non-compliance of which would not affect the essence or substance of the notification granting exemption. Q.7 What is the Rule of “Harmonious Interpretation of Statues “ When is it required to be adapted. Rule of Harmonious Construction • When there is a conflict between two or more statutes or two or more parts of a statute then the doctrine of harmonious construction needs to be adopted. The rule follows a very simple premise that every statute has a purpose and intent as per law. • According to this rule, a statute should be read as a whole and one provision of the Act should be constructed with reference to other provisions in the same Act so as to make a consistent enactment of the whole statute and to remove any inconsistency or repugnancy. • It brings harmony between the various lists referred to in Indian Constitution Schedule 7. (List of legislation – Union list, State list, and Concurrent list). • In the case in which it shall be impossible to harmonize both the provisions, the court’s regarding the provision shall prevail. • A construction which makes one portion of the enactment a dead letter should be avoided since harmonization is not equivalent to destruction. THE FIVE PRINCIPLES OF RULES OF HARMONIOUS CONSTRUCTION In the landmark case of CIT V HINDUSTAN BULK CARRIERS (2003)3 SCC 57 the Supreme Court laid down five principles of rule of harmonious construction:- The courts must avoid a head-on clash of seemingly contradicting provisions and they must construe the contradictory provisions so as to harmonize them. The provision of one section cannot be used to defeat the provision contained in another unless the court, despite all its effort, is unable to find a way to reconcile their differences. When it is impossible to completely reconcile the differences in contradictory provisions, the courts must interpret them in such a way so that effect is given both the provisions as much as possible. Courts must also keep in mind that interpretation that reduces one provision to a useless number or dead is not harmonious construction. To harmonize is not to destroy any statutory provision or to render it fruitless. Cases on Harmonious Construction 1. Venkataramana Devaru v. State of Mysore In this case the Supreme Court applied the rule of harmonious construction in resolving a conflict between Articles 25(2)(b) and 26(b) of the Constitution and it was held that the right of every religious denomination or any section thereof to manage its own affairs in matters of religion [Article 26(b)] is subject to a law made by a State providing for social welfare and reform or throwing open of Hindu religious institutions of a public character to all classes and sections of Hindus [Article 25(2)(b)]. 2. Calcutta Gas Company Pvt. Limited v State of West Bengal The Legislative Assembly of WB passed the Oriental Gas Company Act in 1960. The respondent sought to take over the management of the Gas Company under this Act. The appellant challenged the validity of this act by holding that the state Legislative Assembly had no power to pass such an under Entries 24 and 25 of the State List because the Parliament had already enacted the Industries (Development and Regulation) Act, 1951 under Entry 52 of the Central List dealing with industries. It was observed by the Supreme Court that there are so many subjects in three lists in the Constitution that there is bound to be some overlapping and it is the duty of the courts in such situation is to yet to harmonise them, if possible, so the effect can be given to each of them. Entry 24 of the State List covers entire Industries in the State. Entry 25 is only limited to the Gas industry. Therefore Entry 24 covers every industry barring the Gas Industries because it has been specifically covered under Entry 25. Corresponding to Entry 24 of the State List, there is Entry 52 in the Union List. Therefore, by harmonious construction it became clear that gas industry was exclusively covered by Entry 25 of the State List over which the state has full control. Therefore, the state was fully competent to make laws in this regard. HOW TO APPLY THE DOCTRINE OF HARMONIOUS CONSTRUCTION After analyzing various case laws, the Courts have devised certain steps for the better applicability of the said doctrine- Giving full effect to both the provisions and reducing the contrary nature and/or conflict between them. Both the provisions that are conflicting in nature or are repugnant to each other are to be read as a whole and the entire enactment in question must be considered. Of the two conflicting provisions, choose the one that is wider in scope. Compare the wider provision with the narrow provision and then try to interpret the wider provision to see further consequence. If the consequence is as reasonable as to harmonize both the provisions, and it gives their full effect separately, no further inquiry is needed. One important aspect to be kept in mind is that the legislature while framing the provisions was fully aware of the situation which they entered to cover and therefore all provisions enacted require to be given their full effect on scope.xxiii When one section of an Act takes away powers conferred by another Act, a non-obstante clause must be used.xxiv It is imperative that the Court must try to find out the extent to which the legislature has intended to give one provision an overriding power over another provision. In the case of Eastbourne Corporation v. Fortes Ltd.xxv, it was held that if two contradictory sessions cannot be reconciled, then the last section must prevail. Though this is not a universal rule. IMPORTANCE OF INTERPRETATION OF STATUES Every court is assigned a task of statutory interpretation and it should be performed with utmost care and caution. The court can always interpret legislation in its own way and the responsibility to understand the intent of the legislature while applying the doctrine also stands solely with the court. The interpretation of different statutes differ in nature and it is imperative that the interpretation comes out in a clear and unambiguous way. But, if both the provisions are unclear, there will be no interpretation. They will only interpret when the words are clear and in the case of any ambiguity the court will look into enacting provisions of the statute. The court here will only apply the Literal interpretation and apply the popular meaning. Regarding the law, every word has a meaning and the interpretation will become the scope and beyond the reach of objectives and reasons for which the statute was enacted in the legislature. Hence, the court should understand the importance of the ‘Doctrine of Harmonious Construction’ and interpretation of statutes in general with its ever increasing scope in the present times. Q.8 What is the Grammatical Rule of Interpretation Explain. Literal or Grammatical Rule It is the first rule of interpretation. According to this rule, the words used in this text are to be given or interpreted in their natural or ordinary meaning. After the interpretation, if the meaning is completely clear and unambiguous then the effect shall be given to a provision of a statute regardless of what may be the consequences. The basic rule is that whatever the intention legislature had while making any provision it has been expressed through words and thus, are to be interpreted according to the rules of grammar. It is the safest rule of interpretation of statutes because the intention of the legislature is deduced from the words and the language used. According to this rule, the only duty of the court is to give effect if the language of the statute is plain and has no business to look into the consequences which might arise. The only obligation of the court is to expound the law as it is and if any harsh consequences arise then the remedy for it shall be sought and looked out by the legislature. Case Laws Maqbool Hussain v. State of Bombay, In this case, the appellant, a citizen of India after arriving at the airport did not declare that he was carrying gold with him. During his search was carried on, gold was found in his possession as it was against the notification of the government and was confiscated under section 167(8) of Sea Customs Act. Later on, he was also charged under section 8 of the Foreign Exchange Regulations Act, 1947. Manmohan Das versus Bishan Das, AIR 1967 SC 643 The issue in the case was regarding the interpretation of section 3(1)(c) of U.P Control of Rent and Eviction Act, 1947. In this case, a tenant was liable for evidence if he has made addition and alternate in the building without proper authority and unauthorized perception as materially altered the accommodation or is likely to diminish its value. The appellant stated that only the constitution can be covered, which diminishes the value of the property and the word ‘or’ should be read as land. It was held that as per the rule of literal interpretation, the word ‘or’ should be given the meaning that a prudent man understands the grounds of the event are alternative and not combined. The following ‘Eight Rules’ are the heart or center of all grammatical interpretation: 1. Define the terms or words being considered and then adhere to the defined meanings; 2. Do not add meaning to established words and terms. What was the common usage in the culture and time period when the passage was written; 3. Avoid using words or phrases out of context. Context must define terms and how words are used; 4. Do not separate interpretation and historical investigation; 5. Be certain that words as interpreted agree with the overall premise; 6. Use the known and commonly accepted meanings of words, not obscure meanings for which there are no precedent; 7. Even though many documents may be used there must be a general unity among them; 8. Base conclusions on what is already known and established or can be reasonably implied from all known facts. Advantages of the literal rule  Restricts the role of the judge Provides no scope for judges to use their own opinions or prejudices Upholds the separation of powers Recognises Parliament as the supreme law maker  As the Act is framed by the Legislature, the Literal Rule basically forces the Judges to follow the same. The Literal rule of interpretation is most preferable when there are issues related to politics as the Judge cannot make any decision according to his discretion and needs to be stick to the provisions framed. This also helps to restrict the Judiciary from creating laws contrary to the provisions of the Statute. This also makes the Act and its provisions easy to understand for the general public. Because of interpreting only the ordinary meaning of the words, the process of interpretation becomes more certain and brings consistency in interpreting the Statute. Criticism Literal Rule rests on the assumption that there is only one meaning for a particular word. This restricts the scope of deriving meaning from the context of the Statute and depending solely upon the plain wordings. As stated by Krishna Iyer J to be literal in meaning is to see the skin and miss the soul[10]. This is the reason the Judges prefer to apply the golden rule instead of the Literal rule so as to consider the intent of the Statute and not the plain words. According to Salmond: The essence of law lies in the spirit, not in its letter, for the letter is significant only as being the external manifestation of the intention that underlies it. The implication of Literal Rule creates absurdity which means that it makes the provision vague and inconsistent with the whole Statute, departing the meaning from the intention of framing the particular Statute. Lord Reid in DPP v Ottewell affirmed that the imprecision of the English language… is such that it is extremely difficult to draft any provision which is not ambiguous in that sense. Conclusion There cannot be a fixed rule for the purpose of Interpretation when dealing with cases that are all unique in some sense or the other. In a similar way, there cannot be a statute which is made leaving no scope of Interpretation. Q.9 What do you mean by “Golden Rule Of Interpretation. What is its importance. What is Golden Rule ? Golden rule is a modification of literal rule, Golden rule allows departure from strict literal Rule By recourse to consequences of applying a natural and ordinary meaning. The golden rule is used to remove absurdity.  It comes into existence where some doubt existed as to the meaning of a world. Origin of Golden rule -  In the year 1857, for the first time, Lord Wensleydale propounded the golden rule of interpretation,  in Grey Vs. Pearson. Thereafter this rule has become famous by the name of Wensleydale's Golden rule.  Meaning of Golden rule  - The golden rules departs from its strictly literal rules, it is elaboration or extension of literal rule. Golden rule of interpretation allows judges to depart from a word normal meaning in order to avoid an absurd result According to Maxwell, "The golden rule is that words of Institute must prima facie be given their ordinary meaning. According to the golden rule in the construction of a statute, the Court Must Adhere to the ordinary meaning and grammatical construction of the words used. It is a modification of the principle of literal or grammatical interpretation. Golden rule can be used in two ways -  golden rule can be used in a narrow sense and wider Sense. Importance of Golden rule of Interpretation -  1)  it departs from its strictly literal rules 2)  the court adopt the golden rule of interpretation in order to arrive at a perfect interpretation which would bring out the true meaning of the language, in the process of giving effect to the real intention of the Legislature. Golden rule in nutshell -  Golden rule of Interpretation contains the following points  Modification of literal rule  Different from the literal rule  Application of literal rule may lead to an absurd interpretation of statute.   Golden rule tries to avoid absurd and abnormal result. Application of Golden Rule -  Application of golden rule depends upon the consequences.  Where the situation demands the application of the golden rule it is important to consider the effect or consequences, which would result come out from it, for the of one point out the real meaning of the words. Advantages and disadvantages of Golden rule - Here are some advantages and disadvantages of the golden rule which are as follows - Advantages of Golden rule -  1. With the help of golden rule errors in drafting can be corrected immediately. 2. Decisions are made more in line with Parliament intentions. 3. Errors in drafting can be corrected immediately eg: 4.Decisions are generally more in line with Parliament's intention 5.Closes loopholes 6.Often gives a more just result 7.Brings common sense to the law Disadvantages of golden rule 1. Infringe separation of powers. 2. Judges have no power to intervene for Pure justice where there is no absurdity. Relevant case laws -  Lee Vs Knapp 1967 (2) QB 422-  In this case, interpretation of the world 'stop' was involved. Under section 77(1) of the road traffic Act, 1960 a driver causing an accident shall stop after the accident. In this case, the driver stopped for a moment after causing an accident and then moved away. Applying the golden rule the Court held that requirement of the section had not been followed by the driver as he had not stopped for a reasonable time of period Requiring interested persons to make necessary inquiries for him about the accident Q.10 short Notes:- 1. Internal Aids INTERNAL AIDS 1. Context If the words of a statute are ambiguous then the context must be taken into consideration. The context includes other provisions of the statute, its preamble, the existing state of law and other legal provisions. The intention behind the meaning of the words and the circumstances under which they are framed must be considered. 2. Title The title of an Act is not part of enactment. So it cannot be legally used to restrict the plain meaning of the words in an enactment. Long title. The heading of the statute is the long title and the general purpose is described in it. E.g. Prevention of Food Adulteration Act, 1954, the long title reads as follows “An Act to make provisions for the prevention of adulteration of food”. In Re Kerala Education Bill, the Supreme Court held that the policy and purpose may be deduced from the long title and the preamble. In Manohar Lal v State of Punjab, Long title of the Act is relied as a guide to decide the scope of the Act. 3. Short Title The short title of the Act is purely for reference only. The short title is merely for convenience. E.g. The Indian Penal Code, 1860. 3. Preamble The Act Starts with a preamble and is generally small. The main objective and purpose of the Act are found in the Preamble of the Statute. “Preamble is the Act in a nutshell. It is a preparatory statement. It contains the recitals showing the reason for the enactment of the Act. If the language of the Act is clear the preamble must be ignored. The preamble is an intrinsic aid in the interpretation of an ambiguous act. In Kashi Prasad v State, the court held that even though the preamble cannot be used to defeat the enacting clauses of a statute, it can be treated as a key for the interpretation of the statute. 4. Headings A group of Sections are given under a heading which acts as their preamble. Sometimes a single section might have a preamble. S.378- 441 of IPC is “Offences against property”. Headings are prefixed to sections. They are treated as preambles. If there is ambiguity in the words of a statute, headings can be referred. In Durga Thathera v Narain Thathera, the court held that the headings are like a preamble which helps as a key to the mind of the legislature but do not control the substantive section of the enactment. 5. Marginal notes Marginal notes are the notes that are printed at the side of the section in an Act and it summarizes the effect of the section. They are not part of the statute. So they must not be considered. But if there is any ambiguity they may be referred only as an internal aid to the construction. In Wilkes v Goodwin, the Court held that the side notes are not part of the Act and hence marginal notes cannot be referred. 6. Proviso A proviso merely carves out something from the section itself. A proviso is a subsidiary to the main section and has to be construed in the light of the section itself. Ordinarily, a proviso is intended to be part of the section and not an addendum to the main provisions. A proviso should receive strict construction. The court is not entitled to add words to a proviso with a view to enlarge the scope. 7. Definition/ Interpretation clause The legislature can lay down legal definitions of its own language, if such definitions are embodied in the statute itself, it becomes binding on the courts. When the act itself provides a dictionary for the words used, the court must first look into that dictionary for interpretation. In Mayor of Portsmouth v Smith, the court observed: “The introduction of interpretation clause is a novelty.” 8. Conjunctive and Disjunctive words The word “and” is conjunctive and the word “or” is disjunctive. These words are often interchangeable. The word ‘and’ can be read as ‘or’ and ‘or’ can be read as ‘and’. 9. Explanations IN certain provisions of an Act explanations may be needed when doubts arise as to the meaning of the particular section. Explanations are given at the end of each section and it is part and parcel of the enactment. 10. Exceptions and savings clause To exempt certain clauses from the preview of the main provisions, an exception clause is provided. The things which are not exempted fall within the purview of the main enactment. The saving clause is also added in cases of repeal and re-enactment of a statute. 11. Schedules Schedules form part of a statute. They are at the end and contain minute details for working out the provisions of the express enactment. The expression in the schedule cannot override the provisions of the express enactment. Inconsistency between schedule and the Act, the Act prevails. ( Ramchand textiles v sales tax officer) 12. Illustrations Illustrations in enactment provided by the legislature are valuable aids in understanding the real scope. 13. Meaning of the words The definition of the words given must be construed in the popular sense. Internal aid to construction is important for interpretation. 14.  Punctuation Punctuation is disregarded in the construction of a statute. Generally, there was no punctuation in the statutes framed in England before 1849. Punctuation cannot control, vary or modify the plain and simple meaning of the language of the statute. 2. Literal Legis , Literal interpretation Giving words their ordinary and natural meaning is known as literal interpretation or litera legis. It is the duty of the court not to modify the language of the Act and if such meaning is clear and unambiguous, effect should be given to the provisions of a statute whatever may be the consequence. The idea behind such a principle is that the legislature, being the supreme law making body must know what it intends in the words of the statute. Literal interpretation has been called the safest rule because the legislature’s intention can be deduced only from the language through which it has expressed itself. The bare words of the Act must be construed to get the meaning of the statute and one need not probe into the intention of the legislature. The elementary rule of construction is that the language must be construed in its grammatical and literal sense and hence it is termed as litera legis or litera script. The Golden Rule is that the words of a statute must prima facie be given their ordinary meaning. This interpretation is supreme and is called the golden rule of interpretation. Exceptions to the rule of literal interpretation Generally a statute must be interpreted in its grammatical sense but under the following circumstances it is not possible:Logical defects 1.ambiguity 2. Inconsistency 3. incompleteness or lacunae 4.unreasonableness 3. Sentential Legis A statute is the creature of the sovereign legislature; a primary law making body in India. It is a purposeful design of the legislature with a definite intention to achieve a definite object. The intention or the object of the legislature is expressed through the language of the statute and in many cases the statutory language is sufficiently determinative to resolve a given case. However experience of all those who have to bear and share the task of application of the law has been different; there are gaps to be filled, ambiguities to be resolved, doubts to be cleared; with a purpose to discover the legal meaning of a word or a term expressed in the statute. Words are not scientific symbols with a definite and precise meaning. One word may have different meanings, necessitating interpretation to find out the true sense in which the legislature employed the word in the statute. Legislation is drawn by the drafts-man and a drafts-men’s capacity to anticipate the future is limited. He may not foresee some future possibility or overlook a possible misinterpretation of the original intentions of the legislation. And many a times a law which is enacted with one particular situation in mind may be called in operation in quite a different situations. Thus there may be many occasions on which the judiciary may be called upon to interpret the words, phrases and expressions used in a statute. In the course of such interpretation the courts have laid down certain guidelines known as “Rules of Interpretation of a Statute” In India there is no Statute law for Statutory Interpretation for an act of the Parliament. The rules of interpretation evolved by the courts in process adjudication form an important aid for drawing the intention /purpose of the legislator in enacting the law. Some of the rules interpretation which have assumed legitimacy due to continuous application by the courts are; Sententia Legis, Statute to be read as a whole, language of the statute to be read as it is, plain meaning rule, mischief rule and literal rule of interpretation. The judges have to interpret and apply the statute. It is a freedom to search for the spirit or purpose of the act; it is a rare opportunity though never to be misused. It is a challenge for the judges to adopt and give meaning to the act, articulate and inarticulate and thus translate the intention of the Parliament and fulfil the object of the act.2 The judge cannot have a prior determination and is bound to act on the intent of the legislature and give effect to the same which is expressed in the maxim “Sententia Legis.” In fact the whole interpretative process aims to discover the “Sententia Legis” i.e. the purpose or the object of the legislature for enacting the law. One principle which has dominated statutory interpretation is “Sententia Legis”a often cited principle. It is a common assumption that the courts must make every attempt to discover it. The principle Sententia Legis focuses on the meaning that a legislature intended to give to the statute. Q.11 Discuss the principles interpretation with regards to the provision of constitution . The letters of the constitution are fairly static and not very easy to change but the laws enacted by the legislature reflect the current state of people and are very dynamic. To ensure that the new laws are consistent with the basic structure of the constitution, the constitution must be interpreted in a broad and liberal manner giving effect to all its parts and the presumption must be that no conflict or repugnancy was intended by its framers. Applying the same logic, the provisions relating to fundamental rights have been interpreted broadly and liberally in favor of the subject. Similarly, various legislative entries mentioned in the Union, State, and Concurrent list have been construed liberally and widely. There are basically three types of interpretation of the constitution. Historical interpretation Ambiguities and uncertainties while interpreting the constitutional provisions can be clarified by referring to earlier interpretative decision. Contemporary interpretation The Constitution must be interpreted in the light of the present scenario. The situation and circumstances prevalent today must be considered. Harmonious Construction It is a cardinal rule of construction that when there are in a statute two provisions which are in such conflict with each other, that both of them cannot stand together, they should possibly be so interpreted that effect can be given to both. And that a construction which renders either of them inoperative and useless should not be adopted except in the last resort. General rules of interpretation of the Constitution If the words are clear and unambiguous, they must be given the full effect. The constitution must be read as a whole. Principles of harmonious construction must be applied. The Constitution must be interpreted in a broad and literal sense. The court has to infer the spirit of the constitution from the language. Internal and External aids may be used while interpreting The constitution prevails over other statutes, Principles of Constitutional Interpretation The following principles have frequently been discussed by the courts while interpreting the Constitution: Principle of colourable legislation- The doctrine of colourability is the idea that when the legislature wants to do something that it cannot do within the constraints of the constitution, it colours the law with a substitute purpose which will still allow it to accomplish its original goal. Principle of pith and substance- Pith means ‘true nature’ or essence of something’ and substance means ‘the most important or essential part of something’. The basic purpose of this doctrine is to determine under which head of power or field i.e. under which list (given in the seventh schedule) a given piece of legislation falls. Principle of eclipse- The Doctrine of Eclipse says that any law inconsistent with Fundamental Rights is not invalid. It is not dead totally but overshadowed by the fundamental right. The inconsistency (conflict) can be removed by a constitutional amendment to to the relevant fundamental right so that eclipse vanishes and the entire law becomes valid. Principle of Severability- The doctrine of severability provides that if an enactment cannot be saved by construing it consistent with its constitutionality, it may be seen whether it can be partly saved. Article 13 of the Constitution of India provides for Doctrine of severability which states that- All law in force in India before the commencement of constitution shall be void in so far they are inconsistent with the provision of the constitution. Principle of territorial nexus- Article 245 (2) of the Constitution of India makes it amply clear that ‘No law made by Parliament shall be deemed to be invalid on the ground that it would have extra-territorial operation’. Thus a legislation cannot be questioned on the ground that it has extra-territorial operation. It is well-established that the Courts of our country must enforce the law with the machinery available to them, and they are not entitled to question the authority of the Legislature in making a law which is extra-territorial operation does not invalidate a law. But some nexus with India may still be necessary in some of the cases such as those involving taxation statutes. Principle of implied powers- Laws which are necessary and proper for the execution of the power or incidental to such power are called implied powers and these laws are presumed to be constitutional. In other words, constitutional powers are granted in general terms out of which implied powers must necessarily arise. Likewise, constitutional restraints are put in general terms out of which implied restraints must also necessarily establish. Q.12 What do you mean by construction of Statues .Distinguish if from interpretation of statutes. Construction In law, ‘construction’ means the process of legal exposition which determines the sense and explanation of abstruse terms, writings etc. in the statute and draws a conclusion on the basis of logical reasoning, with respect to the subject that lies above the direct expression of the legal text. The basic principle of construction of a statute is to read it in a literal manner, meaning that by elucidating the words used in the statute, ordinarily and grammatically, if it results in ambiguity and is likely to convey another meaning then the court can opt for its literal meaning. However, if no such absurdity is possible, the fundamental rules of interpretation can be adopted. Key Differences Between Interpretation and Construction The difference between interpretation and construction can be drawn clearly on the following grounds: In law, interpretation refers to, understanding the words and true sense in the provisions of the statute. On the other hand, construction is described as drawing conclusions, in relation to the case, that lie beyond the outright expression of the legal text. While interpretation is all about the linguistic meaning of the legal text, Construction determines the legal effect of the words and writings of the statute. When the simple meaning of the legal text is to be drawn, then that will be called an interpretation. Conversely, when the literal meaning of the words used in the legal text results in ambiguity, then construction is opted, so as to decide whether the case is covered by it or not. Q.13 Described the duty of court in respect of interpretation of statutes . Q.14 What do you understand by permanent and temporary statutes distinguish them . A temporary statute is one where its period of operation or its validity has been fixed by the statute itself. Such an Act continues in force, unlesss repealed earlier, until the time so fixed. This type of statutes are Statutes which are in existence for a known Period such Statutes are called Temporary Statute. Life period of Statute is Fixed. In simple words this type of Statute, the period of operation is fixed by the statute itself the statute is temporary in nature. A permanent statute on the other hand, is one where no such period has been mentioned but this does not make the statute unchangeable; such a satute may be ammended or replaced by another act. When no time period is fixed the statute is permanent in nature. The dictionary meaning of the term 'perpetual' is forever. Therefore perpetual Statutes are those which remain in force forever. These Statutes comes to an end only when they are abolished by the legislature itself by way of enacting another Statute. Q.15 Discuss the importance of Stare –Deciss ‘’ in interpretation of statutes. Stare decisis is a legal doctrine that obligates courts to follow historical cases when making a ruling on a similar case. Stare decisis ensures that cases with similar scenarios and facts are approached in the same way. Simply put, it binds courts to follow legal precedents set by previous decisions. Stare decisis is a Latin term meaning "to stand by that which is decided." The doctrine of precedent refers to the doctrine that the court is to follow judicial decisions in earlier cases when the same points relating to the law are present before it in subsequent matters. The concept of stare decisis furthers three primary goals. Firstly the doctrine promotes confidence amongst the citizens to plan their economic and social transactions. It does this by providing them the confidence that they are in compliance with the law. It also encourages private settlement of the disputes as the court may infer its decision on the basis of this doctrine. Secondly, it reduces the need to relitigate on the cases on which the judgment has already been passed. It discourages the rush of fresh litigation whenever a change in the judge/ bench occurs. Third, it promotes public confidence in the judiciary as it reduces and puts constraints on the judges’ power. The doctrine helps the judges to judge in a predictable and non-chaotic manner. Foundation of Stare Decisis The guiding principle behind the doctrine of stare decisis is the maintenance of consistency and certainty. A good level of predictability, stability, and certainty is the need for the legal system. Precedent appeals to primary desires in a system of laws that is justified expectations of—rationality, regularity, and stability. It satisfies that in case of all other things being equal, a legal system should resolve the matter in similarity irrespective of the different judiciary. It discourages successive relitigation of the issues that have already been authoritatively resolved. The doctrine of stare decisis in India The doctrine of stare decisis in its present form appears to not have existed in India during the pre-British era. Post-establishment of British rule in the country the concept of binding precedent came to be applicable in India advantages and disadvantages of stare decisis? Some of the advantages of stare decisis include: Consistency and fairness: Stare decisis is meant to ensure that similar legal cases will reach decisions that are consistent with one another. The idea is to help the courts better implement laws, for citizens to better understand them, and to instill a sense that the legal system treats citizens fairly — In other words, all cases are treated the same. Flexibility: Although stare decisis assumes that courts will generally follow precedents, the principle allows room to overturn prior decisions and make new precedents. This allows the law to evolve over time. Saves time and resources: Stare decisis encourages judges to consult past decisions for reference instead of making their decisions in a vacuum. This may help courts decide difficult cases more efficiently. Some of the disadvantages of stare decisis include: Rigidity: Sometimes, stare decisis brings flexibility to the table. But other times, it just makes it harder to overrule a bad decision. While there is often no obligation to follow precedent, the doctrine is fairly ingrained into the legal system, so judges will usually need a very good reason to overrule a decision. Undemocratic decision-making: Unlike laws passed by governments, high-court decisions are often made by judges who are appointed (rather than elected). This may make their decisions less accountable to the general public. Emphasis on the past: Following precedents that are decades or even centuries old can sometimes lose sight of how the world has changed since those precedents were first set. Q.16 Discuss the rule of interpretation of Taxing statutes . In its literal sense the term taxing statutes may be defined as those statutes that imposes tax on the citizens. Article 265 of the constitution mandates that no tax shall be levied or collected except by the authority of law. It provides that not only levy but also the collection of a tax must be under the authority of some law. The tax proposed to be levied must be within the legislative competence of the Legislature imposing the tax. The validity of the tax is to be determined with reference to the competence of the Legislature at the time when the taxing law was enacted. The law must be validly enacted i.e. by the proper body which has the legislative authority and in the manner required to give its Acts, the force of law. The law must not be a colourable use of or a fraud upon the legislative power to tax. The tax must not violate the conditions laid down in the constitution and must not also contravene the specific provisions of the constitution. No tax can be imposed by any bye-law, rule or regulation unless the ‘statute’ under which the subordinate legislation is made specifically authorises the imposition and the authorisation must be express not implied. -------Taxation is statutory filed. No tax can be levied and collected except according to the authority of law. There is fiscal legislation every year much of it prepared in great secrecy and under server pressured of time, and it directly affects most people. This legislation is complicated and elaborated because of intricate prepositions it has to express, and the verity of circumstances and conditions in which it falls to be applied and the refined distinctions it embodies in order to attempt to cater expressly for them. Consequently, the body of tax statues as whole is voluminous and complex in structure as well as in concept and expression. There is another reason for the fiscal legislation being complex and complicated. In fact, taxes are as complex as life. The moralist calls for just taxes, but taxes cannot just be just, if we recall the scheme of special bearer bonds for mopping up black money. They cannot simply be simple. The businessman demands practical taxes, but financially history proves that it is impracticable to make them practical. Exemption Notifications have to be strictly construed; if exemption is available on complying with certain conditions, conditions have to be complied with; plea of 'substantial compliance' depends upon facts of each Tax Systems in India The tax system of British India reflected characteristics of a traditional agriculture economy. Revenues of the central government were dominated by custom duties as domestic requirements for manufactured goods were dominated by custom duties as domestic requirements for manufactured goods were met mostly from imports, chiefly from Britain and other commonwealth countries. Import duties were levied on all most all items of imports whereas major items subject to export duties were jute and tea in which India enjoyed near monopoly in the world market. Various custom and tariff enactments were passed from time to time. Principle of Interpretation Principle of interpretation which have evolved are those based on plain meaning of the words used and their grammatical meaning and those based on the intention or purpose of the legislature. In India tax law provides a useful set of cases for exploring the interpretative approaches of the judiciary in India. Some general observations made by the courts are first mentioned before analyzing the cases on different approaches. Interpretation of statute means that the court has to ascertain the facts and then interpret the law to apply to such facts. It is the function of the legislature to say what shall be the law and it is for the court to say that what the law is. Where the language is plain and unambiguous and admits of only one meaning no question of construction of statute arises for the statute speaks for itself. The term interpretation means “to give meaning to” there are three bodies which divided government power namely legislature, the executive and the judiciary. Interpretation of statutes to render justice is primary function of the judiciary. The most common rule of interpretation is that every part of the statute must be understood in a harmonious manner by reading and construing every part of it together. The maxim “A Verbis legis non est recedendum” means that you must not very the words of the statute while interpreting it. Principle of Strict Construction The manner in which the Income-Tax Act has been drafted leaves great scope for litigation. For this purpose, principles of interpretation have to be applied. These principles themselves are not infallible and would depend on the facts of each case. The two well-settled principles of interpretation, as applicable in taxing statutes, are: (1) There is no equity in tax, and the principle of strict or literal construction applies in interpreting tax statutes. Hence, on the plain language of the statute, if the assessee is entitled to two benefits, he has to be granted both these benefits; and (2) If there are two reasonable interpretations of taxing statutes, the one that favors the assessee has to be accepted. The principle of strict interpretation of taxing statutes was best enunciated by Rowlatt J. in his classic statement in Cape Brandy Syndicate v I.R.C. (1 KB 64, 71): "In a taxing statute one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. One can look fairly at the language used -----Taxing statutes are those Statutes which imposes taxes on income or certain other kinds of transactions. It may be in the form of Income Tax, Wealth Tax, Sales Tax, Gifts Tax etc. The object of taxing statute - The object of taxing Statute is to collect revenue of the government. Tax is levied for the public purpose. As we all know that tax is a source of revenue generation for the state. The money collected in the form of tax is utilized for the welfare activities of the public. Tax can be levied only when a Statute unequivocally so provides by using Express language to that effect and any doubt is resolved in favor of the assesse. Q.17 Explain the Importance of Legal presumption in the interpretation of statutes . Presumption in Statutes In the interpretation of statutes, certain so-called presumptions exist, which are not truly concerned with evidence at all, but are cannons of interpretation. To "presume" means to suppose that something is probably true. Thus presumption means an act of presuming, assuming or imagining something to be true. The legislature is presumed to use appropriate words to manifest its intention. In G. Vasu v. Syed Yaseen Saifuddin Quadri(1987) it was held that Presumption may be looked on as the bats of law, flitting in the sunlight but disappearing in the sunshine of fact. Presumption in Rule of Evidence It is obligation on the court to raise presumption in every case where the factual basis for raising of presumption had been established. Such a presumption is a presumption of law, as distinguished from a presumption of fact, which describes provisions by which the court "may presume" a certain state of affairs. In other words, provided the facts required to form the basis of a presumption of law exists, no discretion is left with the court but to draw the statutory conclusion; but this does not preclude the person against whom the presumption is drawn from rebut ting it and proving the contrary. In Hiten P.Dalal vs. Bratindranath Banarjee (2001) it was held that the rebuttal does not have to be conclusively established, but such evidence must be adduced before the court in support of the defence that the court must either believe the defence to exist or consider its existence to be reasonably probable, the standard of reasoning being that of a "prudent man". Mandatory and Discretionary Presumption In case of a discretionary presumption, the presumption, if drawn, may be rebutted by an explanation which might reasonably be true and which is consistent with the innocence of the accused. On the other hand in case of a mandatory presumption, the burden resting on the accused person in such a case would not be as light as it is, where a presumption is raised under Section 114, Evidence Act and cannot be held to be discharged merely by reason of the fact that the explanation offered by the accused is reasonable and probable. It must also be shown that the explanation is a tone one. Conclusive Presumption As observed by the Supreme Court, the legislature is competent to create a conclusive presumption of law, if it acts within the allotted legislative sphere and does not violate any constitutional mandate. Conclusive presumption can be created by government also, if statute empowers it to do so. General Presumptions Some general presumptions may be laid down as under: 1. The words in a statute are used precisely and not loosely. 2. Vested rights are not taken away without express words or necessary implication or withoutcompensation. 3. Mens rea is generally required for a criminal act. 4. Government is affected by a statute. 5. The jurisdiction of courts is neither enlarged nor decreased. 6. Statutes are not intended to be inconsistent with international law. 7. The legislature does not intend what is inconvenient and unreasonable. 8. The legislature knows the existing law and does not intend to alter it except by express enactment. 9. The legislature does not commit mistakes or make omissions. 10. Different words in the same statute have different meanings. 11 Words are to be understood according to the subject matter they refer to and the object of the legislature. 12. An interpretation clause is an aid to the interpretation of the statute in which it occurs and has no effect on other statutes. ------When determining the meaning of particular words the courts will make certain presumptions about the law. If the statute clearly states the opposite, then a presumption will not apply and it is said that the presumption is rebutted. The main presumptions are: A presumption against change in the common law. It is assumed that the common law will apply unless Parliament has made it plain in the Act that the common law has been altered. A presumption that mens rea (‘guilty mind’) is required in criminal cases. Mens rea is one of the elements that has to be proved for a successful criminal prosecution. There is a common law rule that no one can be convicted of a crime unless it is shown they had the required intention to commit it. A presumption that the Crown is not bound by any statute unless the statute expressly says so. A presumption that a statute does not apply retrospectively. No statute will apply to past happenings. Each statute will normally only apply from the date it comes into effect. This is, however, only a presumption and Parliament can choose to pass a statute with retrospective effect. This must, however, be expressly stated in the statutes, for example, the War Damage Act 1965, the War Crimes Act 1991 and the Adoption Act 1976. Q.18 Short notes 1-Codifing statutes A codifying statute is one which restates legal subject matter previously contained in earlier statutes, the common law, and custom. It is a statute that purports to be exhaustive in restating the whole of the law on a particular topic, including prior caselaw as well as legislative provisions. The courts generally presume that a codifying statute supersedes prior caselaw. Meaning of Codifying statute -  A codifying Statute which is the one which purports to statute exhaustively the whole of the law upon a particular subject, the draftsman attempting to comprise in which code both the pre-existing statutory provisions and also, rules relating to the matters. In presents an orderly statement of leading rules of law on a given subject. Former statute survive It is self-contained and complete Unless the code is ambiguous or silent on an issue the court cannot go outside the letter of law. Presumption that the same words when used at different places in the same Act would bear the same meaning holds good and applicable. 2- Amending statutes , Amendment means a change in the existing law. A law is amended when it is in whole or in part permitted to remain and something is added to or taken away from it or it is some way changed or altered to make it more complete or perfect or make it suitable to accomplish the purpose for which it was made. The statutes which operate to make changes in the provisions of the enactment to change the original law for making an improvement therein and for carrying out the provisions effectively for which the original law was passed are referred to as amending statutes. For example- Code of Criminal Procedure 1973 amended the code of 1898. 3- Judicial Activism , Judicial activism is a judicial philosophy that the courts can and should go beyond the applicable law to consider broader societal implications of its decisions. It is sometimes used as an antonym of judicial restraint. It is usually a pejorative term, implying that judges make rulings based on their own political agenda rather than precedent and take advantage of judicial discretion. The definition of judicial activism and the specific decisions that are activist are controversial political issues. The question of judicial activism is closely related to judicial interpretation, statutory interpretation, and separation of powers. Judicial activism in India  The concept of judicial activism found its roots in the English concepts of ‘equity’ and ‘natural rights’. The root of judicial activism in India is very difficult to find. For a very long time, the Indian judiciary had adopted an orthodox approach to the very concept of judicial activism. It would be wrong, however, to say that there have been no incidents of judicial activism in India. Some scattered and stray incidents of judicial activism have taken place from time to time. But, they did not come to the fore as the very concept was unknown to India. However, the history of judicial activism can be traced back to 1893, when Justice Mehmood of the Allahabad High Court delivered a dissenting judgment which sowed the seed of judicial activism in India. Judicial activism, as the modern terminology denotes, originated in India much later. This origin can be traced to the Theory of Social Want propounded by David McClelland. It was due to executive abuses and excesses that the judiciary had to intervene during legal proceedings. Future of Judicial Activism and judicial reforms  The concept of judicial activism is multidimensional, however, there cannot be the universal application of these dimensions; they vary according to constitutions and ideologies. The idea of judicial activism is not straightforward, it means different people have different perspectives regarding the meaning of judicial activism. It can be defined as a philosophy of judicial decision making whereby judges allow their personal views regarding a public policy instead of constitutionalism. A few cases of judicial activism in India are as follows: • Golaknath case in which Supreme Court declared that Fundamental Rights enshrined in Part 3 are immutable and cannot be amended • Kesavananda Bharati whereby Supreme Court introduced doctrine of basic structure, i.e. Parliament has power to amend without altering basic structure of the Constitution • SC has assumed a supervisory role in CBI investigation of 2G scam • In invoking terror laws against Hasan Ali Khan Moreover, the concept of Judicial Activism also faced certain criticisms. Firstly, it is often said that in the name of activism, judiciary often rewrites with personal opinions. Secondly, the Theory of Separation of Powers is overthrown. However, its importance lies with position accorded to institution as a place of hope for aggrieved persons. 4 .Procedural Law Procedural law, adjective law, in some jurisdictions referred to as remedial law, or rules of court comprises the rules by which a court hears and determines what happens in civil, lawsuit, criminal or administrative proceedings. The rules are designed to ensure a fair and consistent application of due process (in the U.S.) or fundamental justice (in other common law countries) to all cases that come before a court. In the context of procedural law, procedural rights may also refer not exhaustively to rights to information, access to justice, and rights to public participation, with those rights encompassing, general civil and political rights. In environmental law, these procedural Rights have been reflected within the UNECE Convention on "Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters" known as the Aarhus Convention  References :- https://learn.robinhood.com , https://legalbites.com , https://srdnotes.com , https://ipleaders.com