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Subsidairy Rules

Interpretation of Statutes (Karnataka State Law University)

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Subsidairy Rules Of Interpretation

1. SAME WORD SAME MEANING

• When the legislature same word in different parts of the same section or statute, there is a
presumption that the word is used in the same sense throughout.

• The presumption is, however, a weak one and is readily displaced by the context. It has been said that
the more correct statement of the rule is that “where the draftsman uses the same word or phrase in
similar contexts, he must be presumed to intend it in each place to bear the same meaning”

• Case 1- Justice Wanchoo – Bhogilal Chunnilal vs. State of Bombay (1959)- Words are generally used in
the same sense throughout the statute, unless there is something repugnant in the context

• Case 2 - Bhogilal Bhikachand v. The Royal Insurance Co. Ltd. 1928

Word ‘’Statement” is been used for the Sec 157 “ something which is stated” Thus notes of attendance
would be admissible in evidence

• Case 3 Section 31(7) (a)of the Arbitration and Conciliation Act, 1996

Section 31(7) (b) word ‘ sum ’used in this provision has not been qualified by using the word ‘principal’ before
it, and hence may include ‘principal’ and ‘interest’ and same meaning must be ascribed to the word sum in the
section 37 (7) (b) of the Act.

2. USE OF DIFFERENT WORDS

• “When in relation to the same subject matter, different words are used in the same statute, there is a
presumption that they are not used in the same sense”

• Justice Venakatarama Aiyar – “When two words of different import are used in a statute in two
consecutive provisions, it would be difficult to maintain that they are used in the same sense”

CASE No 1

Section 3 (ff) of the Bombay Municipal Corporation Act, 1888, uses the words “profit” or “gain”. The SC
relied on the dictionary meaning and held that the words are not synonyms and mean two different things.
Profit means commercial and pecuniary profits and gain would mean any advantage or benefit acquired
by some activities.

Case No 2

In Central Rules made under the Drugs act, 1940, The words “test” and “analysis” were held to be having
different meaning.

Case No 3

Berar Industrial Disputes and settlement Act. 1947 – Words “Rendered Illegal” and “held Illegal” are different.

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3. NON OBSTANTE CLAUSE –

• A clause begins with “Notwithstanding anything contained in this Act,….or in some provision in the
Act or in some particular Act or in any law for the time being in force”

“Non-obstante” is a Latin word which means ‘notwithstanding anything contained’.

That means this clause empowers the legislation or a provision in which it contains,
to override the effects of any other legal provisions contrary to this under the same law or any other law.

Eg Section 238 of the Insolvency and Bankruptcy Code, 2016, which is termed as a non-obstante clause states :

“The provisions of this Code shall have effect, notwithstanding anything inconsistent therewith contained in
any other law for the time being in force or any instrument having effect by virtue of any such law.”

Case In RC Pondayal V/S Union of India (AIR 1993 SC 1840) –

12 seats of reservation for new state Sikkim – Art 371 (f) was contended against Art 14 and secularism of constitution
Court held - Parliament can add a state as per Indian constitution Art . 2, No violation of Art 19.

Case 2 - Lakshminarayan Saw Mill V/S State of Orissa(AIR 1995 Ori 114, FB)

The notice under S.4(1) of Orissa Saw Mills and Saw Pits (Control) Act 1991, was issued to close down
factory and refusal to issue licence.

Challenging the validity of S.4(1) of the Act and the notice, petitioner filed the writ petition contending
that it violates his fundamental right to carry on trade and business and also created invidious
discrimination to the Saw Mills/Saw Pits situated in that district vis-a-vis other districts.
.
It was also contended that the act did not create any total ban but gave discretion to the licensing
authority to grant or refuse the renewal of licence

Court Held - It is true that non-obstante clause is usually used to indicate the overriding effect, but it is not the rule of
thumb. Sometimes, proviso can be treated as a substantive provision and a non-obstante clause as another provision. .
Fundamental right to practise any profession or to carry on as occupation, trade or business is specified under Article
19(1)(g) of the Constitution. But this right is subject to limitations provided for in Sub-article (6), which permits the
State to make a law imposing, in the interest of general public, Reasonable restrictions on the exercise of that right.
The key words are "reasonable restrictions" and "in the interest of general public".

Case 3 Maruti Udyog V Ramlal and Ors

The said Act contains a non-obstante clause. It is well-settled that when both statutes containing non-obstante clauses are
special statutes, an endeavour should be made to give effect to both of them. In case of conflict, the latter shall prevail.

4 LEGAL FICTION:

Legal fiction is one which is not an actual reality which law recognizes & the court accepts as a reality. Therefore in cases
of legal fictions, the court believe something to exist which in reality does not exist. It is nothing but a presumption of
the existence of the state of affairs which in actually is non-existence

what purpose the fiction is created,

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assume all those facts and consequences

Case - Union of India V/S Sampath Raj

The fiction created by this clause was held to be for the proper implementation of the import order & the Imports & the
Exports Act 1947..

Case 3 Maruti Udyog V Ramlal and Ors – Appeal was allowed by court,
It was held that in construing a legal fiction the purpose for which it is created should be kept in mind and should not be
extended beyond the scope thereof or beyond the language by which it is created. No additional sympathy creats law.

5 MANDATORY & DIRECTORY PROVISIONS

Mandatory legislation is where legal technology is required to be done & the consequences of failure to do so are also
provided, then it is known as mandatory provision…

Insistence on a strict compliance with it is likely to result in serious general inconvenience of injustice to hundreds of
innocent person who have no control over Government without promoting the real aim and object of the legislature.

Directory provision in a statute, rule of procedure, consists of only direction or instruction of no obligatory force &
involves no invalidating consequences for its discharge, as an imperative or mandatory provision.

“A failure to comply with this provision is not likely to result in any injury or prejudice to the substantial rights of
interested person, or in the loss of any advantage, the destruction of any right or the sacrifice of any benefit.

Case Sharifuddin v Abdul Gani

• The Supreme Court very significantly pointed out the difference between a mandatory and a
directory rule.

1. It was observed that the fact that the statute uses the word shall while laying down a duty is not
conclusive on the question whether it is a mandatory or a directory provision.
2. The Court has to ascertain the object which the provision of law in question is to subserve and its
design and the context in which it is enacted.

6 CONJUCTIVE AND DISJUNCTIVE WORDS- USE OF OR/AND

• The importance and the need for correct interpretation of the words “and” and “or”, as an aid to
interpretation to ensure that effect is given to the true intent of the Legislature.
• The word “or” is normally disjunctive and “and” is normally conjunctive but context is very important.
• to ensure that effect is given to the true intent of the Legislature.
Eg. 1 In section 7 of the Official Secrets Act, 1920, which reads - the word “and” printed in Italics was read
as “or” for by reading “and” as “and” the result produced was unintelligible and absurd and against the
clear intention of the Legislature. Thus, even a person who does an act preparatory to the commission of
an offence is equally liable.

Example 2 - Section 3 of the Prevention of Corruption Act, 1988

Word “or” always doesn’t mean mutually exclusive, it may mentioned to creat special powers in specific
cases.

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7. Nosciter A Sociis – known by its associates

Doubtful meaning with the context of statute/phrase or group of words. Relation of words accompanying each
other, in immediate connection.

Maxwell - two or more words they are understood to be used in their cognate sense. They take colour from
each other that is meaning of the doubtful word may be ascertained by reference to the meaning of the words
associated with it.

Case 1 - Foster v Diphwys Casson((1887)

Cloth Bag used to take explosives can not be considered as case/container/canister

because parliament's intention in using ‘case or container’ was referring to something of the same strength as
a canister.

Case 2 - Commrs Vs. Savoy Hotel

It was held that the description fruit juices as occurring therein should be construed in the context of the
preceding words and that orange juice unsweetened and freshly pressed juice was not within the description

Case 3

The apex court in Pradeep Agarbat with reference to the Punjab Sales Tax Act held that the word, “perfumery’’ means
such articles as used in cosmetics and toilet goods viz, sprays, etc but does not include ‘Dhoop’ and ‘Agarbatti’. This is
because in Schedule ‘A’ Entry 16 of Punjab Sales Tax Act reads as “cosmetics, perfumery & toilet goods excluding
toothpaste , tooth powder kumkum & soap.”

8. Ejusdem Generis -
Case - UP State Electricity Board vs Harishankar, AIR 1979, SC held that the following conditions must exist for the
application of this rule –

1. The statue contains an enumeration of specific words

2. The subject of the enumeration constitute a class or a category

3. The class or category is not exhausted by the enumeration

4. A general term is present at the end of the enumeration

5. There is no indication of a different legislative intent

Example: if a law refers to automobiles, trucks, tractors, motorcycles and other motor-powered vehicles, "vehicles"
would not include airplanes, since the list was of land-based transportation.

Case - Rajasthan State Electricity vs. Mohan Lal & Ors

To invoke the application of the ejusdem generis rule there must be a distinct genus or category.

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& must not be pushed too far.

9. Reddendo Singula Singulis –

When a list of words has a modifying phrase at the end, the phrase refers only to the last word, e.g., firemen, policemen,
and doctors in a hospital. Here, “in a hospital” only applies to doctors and not to firemen or policemen. The reddendo
singula singulis principle concerns the use of words distributively. Where a complex sentence has more than one subject,
and more than one object, it may be the right construction to render each to each, by reading the provision distributively
and applying each object to its appropriate subject.

Case - Koteshwar Vittal Kamatvs K Rangappa Baliga,

Are 304 of Indian constitution "no bill or amendment for the purpose of clause (b), shall be introduced or moved in the
legislature" It was held that the word introduced applies to bill and moved applies to amendment.

“May’, ‘shall’ and ‘must”

In state of UP v Jogendra Singh,

the Supreme Court observed that “there is no doubt that the word ‘may’ generally does not mean ‘must’ or ‘shall’.

‘Shall’ in the normal sense imports command.

It is well settled that the use of the word ‘shall’ does not always mean that the enactment is obligatory or mandatory. It
depends upon the context in which the word ‘shall’ occurs and the other circumstances. Unless an interpretation leads to
some absurd or inconvenient consequences or contradicts with the intent of the legislature the court shall interpret the
word ‘shall’ in mandatory sense.

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