Object, Purpose, and Importance of The General Clauses ACT
Object, Purpose, and Importance of The General Clauses ACT
Object, Purpose, and Importance of The General Clauses ACT
(Law Maven)
➢ general definitions
➢ which shall be applicable to all Central Acts and regulations where there is no
definition in those Acts or regulations;
➢ The General Clauses Act has been enacted to shorten language used in
parliamentary legislation and
➢ to avoid the repetition of the same words in the different pieces of legislation;
3. This Act has been famously known by the name "Law of all Laws" by various jurists.
1. The word Company used in the Companies Act, is defined in section 2 (20) of the
respective Act.
2. Word "Security” used in the companies Act, not defined in the respective Act. It
has been defined under section 2(h) of the Securities Contracts (Regulations) Act,
1956.
3. The word Affidavit used in section 7 during the incorporation of company' in the
Companies Act, 2013, shall derive its meaning from the word Affidavit as defined
in the General Clauses Act, 1897.
4. The word year used in section 96 of Companies Act, 2013 shall derive its meaning
from the word year as defined in Section 3(66) the General Clauses Act, 1897. i.e
a period of 365 or 366 days, starting on January 1st and ending on December 31st .
5. The word good faith as used in Indian Contract Act 1872, Sale of Goods Act, 1930
etc shall derive its meaning from the word year as defined in Section 3(22) the
General Clauses Act, 1897.
DEFINITIONS (SECTION 3)
In this Act, and in all Central Acts and Regulations made after the commencement of
this Act, unless there is anything repugnant in the subject or context, -
3(2) Act ‘Act’, used with reference to an offence or a civil wrong, shall
include a series of acts, and words which refer to acts done
extend also to illegal omissions.
3(3) Affidavit ‘Affidavit’ shall include affirmation and declaration in the case of
persons by law allowed to affirm or declare instead of swearing.
3(7) Central ‘Central Act’ shall means an Act of Parliament, and shall include -
Act (a) An Act of the Dominion Legislature or of the Indian Legislature
passed before the commencement of the Constitution,
(b) an Act made before such commencement by the Governor
General in Council or the Governor General, acting in a legislature
capacity.
3(8) Central ‘Central Government’ shall, -
Governme (a) in relation to anything before the commencement of the
nt Constitution, mean the Governor General or the Governor General
in Council, as the case may be, and shall include, -
(i) in relation to functions entrusted under sub-section (1) of
Section 124 of the Government of India Act, 1935, to the
Government of a Province, the Provincial Government acting within
the scope of the authority given to it under that subsection, and
(ii) in relation to the administration of a Chief Commissioner’s
Province, the Chief Commissioner acting within the scope of the
authority given to him under subsection (3) of section 94 of the
said Act, and
(b) in relation to anything done or to be done after the
commencement of the Constitution, mean the President, and shall
include -
(i) in relation to functions entrusted under clause (1) of article
258 of the Constitution, to the Government of a State, the State
Government acting within the scope of the authority given to it
under that clause,
(ii) in relation to the administration of a Part C State before the
commencement of the Constitution (Seventh Amendment) Act,
1956, the Chief Commissioner or the Lieutenant-Governor or the
Government of a neighbouring State or other authority acting
within the scope of the authority given to him or it under article
239 or article 243 of the Constitution, as the case may be, and
(iii) in relation to the administration of a Union territory, the
administrator thereof acting within the scope of the authority
given to him under article 239 of the Constitution.
3(13) Commence ‘Commencement’ used with reference to an Act or Regulation, shall
In this scenario:
• John's action of approving the license without properly
reviewing the construction plans may be considered
negligent because he failed to exercise due diligence in
carrying out his duties.
• However, if John genuinely believed that the construction
plans met the required standards and approved the license
with an honest intention to fulfill his duties, his action may
still be deemed to be done in good faith according to
Section 3(22) of The General Clauses Act, 1897.
• Despite the negligence in not thoroughly reviewing the
plans, John's honest belief that he was acting in
accordance with the law and his responsibilities could be
considered sufficient to demonstrate good faith.
So, even though John's action might have been negligent, if it was
carried out honestly and in good faith, he may be protected from
certain legal consequences that could arise from his negligence, as
3(23) Governme ‘Government’ or ‘the Government’ shall include both the Central
nt or the Government and any State Government.
Governme
nt
3(24) Governme ‘Government securities’ shall mean securities of the Central
nt Government or of any State Government, but in any Act or
securities Regulation made before the commencement of the Constitution
shall not include securities of the Government of any Part B State.
3(26) Immovabl ‘Immovable property’ shall include land, benefits to arise out of
e land, and things attached to the earth, or permanently fastened
property to anything attached to the earth.
Example Suppose you own a piece of land in a rural area. Here's how the
elements mentioned in Section 3(26) apply:
1. Land: The primary component of immovable property is the
land itself. In this case, the actual parcel of land you own
is considered immovable property.
2. Benefits to Arise out of Land: This refers to any
advantages or rights associated with the land. For example,
if your land has a natural water source, such as a river or a
spring, the right to use the water for irrigation or other
purposes would be considered a benefit arising out of the
land.
3. Things Attached to the Earth: This includes objects that
are physically connected to the land in a way that they
cannot be easily removed without causing damage. For
instance, if you have constructed a building on your land,
the building itself, along with its foundation, walls, and
roof, would be considered immovable property because
they are permanently attached to the earth.
4. Permanently Fastened to Anything Attached to the
Earth: This extends the definition to objects that are
affixed to structures that are themselves attached to the
earth. For example, if you have installed solar panels on the
roof of your building, the solar panels would be considered
immovable property because they are permanently
fastened to a structure (the building) that is attached to
the earth.
In summary, immovable property, as defined in Section 3(26) of
The General Clauses Act, 1897, encompasses not only the land
itself but also benefits arising from the land and objects that are
permanently attached to the earth or to structures attached to
(a) in the case of a Central Act made before the commencement of the Constitution,
of the Governor-General; and
Example: The Companies Act, 2013 received assent of President of India on 29th
August, 2013 and was notified in Official Gazette on 30th August, 2013 with the
enforcement of section 1 of the Act. Accordingly, the Companies Act, 2013 came into
enforcement on the date of its publication in the Official Gazette.
Example: Suppose Parliament passes a Central Act named "The XYZ Act" on March 21,
2024, and this act does not specify any particular date for its commencement.
"The XYZ Act" is passed after the Constitution came into effect, then it will come
into operation on the day it receives the assent of the President.
So, let's say "The XYZ Act" is passed on March 21, 2024. Since this is after the
commencement of the Constitution, the act will come into operation on the day it
receives the assent of the President, which might be a few days after its passage
through Parliament, depending on the administrative processes involved.
➢ or
➢ Regulation
➢ by which the text of any Central Act (Companies Act, 2013) or Regulation was
amended
➢ the repeal shall not affect the continuance of any such amendment made by the
enactment so repealed and in operation at the time of such repeal.
For example, the new law could be titled "The Revival of Taxation
Provisions Act, 2025," and it would explicitly state in its provisions
CONSTRUCTION OF REFERENCES TO
REPEALED ENACTMENTS (SECTION 8)
Situation Where
where a
➢ this Act, (The General Clauses Act, 1897)
provision
is ➢ or
repealed
➢ any Central Act or Regulation (The Companies Act, 2013)
and is
re- ➢ made after the commencement of this Act,
enacted
➢ repeals and re-enacts,
by any
other ➢ with or without modification, any provision of a former enactment
Act (The Companies Act, 1956),
➢ by any Central Act or regulation made after the commencement of this Act,
➢ then, if the Court or office is closed on that day or the last day of the prescribed
period,
➢ the act or proceeding shall be considered as done or taken in due time if it is done
or taken on the next day afterwards on which the Court or office is open.
Suppose there is a Central Act that requires filing a legal document, let's say an appeal,
within 30 days of a particular court judgment. The judgment is delivered on January
15, 2024. According to the Central Act, the appeal must be filed within 30 days, i.e.,
by February 14, 2024.
Now, if February 14, 2024, falls on a Saturday, and the court where the appeal is to
be filed is closed on Saturdays, then according to Section 10 of The General Clauses
However, it's important to note that if this situation falls under the purview of the
Indian Limitation Act, 1877 (for example, if the appeal is subject to a specific
limitation period mentioned in that Act), the rules of Section 10 of The General Clauses
Act, 1897, would not apply, and the provisions of the Indian Limitation Act, 1877, would
govern the computation of time.
➢ then a like duty (proportionate) is leviable according to the same rate on any
greater or less quantity.
Under Section 15, the national education board can appoint regional directors either:
1. By Name: The board explicitly selects and appoints individuals to fill the
position of regional directors. For instance, they may appoint Mr. A, Mr. B, and
Ms. C as regional directors for different states.
2. By Virtue of Office: Alternatively, the law might specify that certain officials
automatically assume the role of regional directors by virtue of holding a
particular office or position. For example, if the law states that the education
ministers of each state automatically serve as regional directors in their
respective states, then those ministers would execute the functions of regional
directors by virtue of their office.
SUBSTITUTION OF FUNCTIONARIES
(SECTION 17)
Sufficient In any Central Act or Regulation made after the commencement of this
to mention Act, it shall be sufficient, for the purpose of indicating the application
title of the of a law to every person or number of persons for the time being
officer executing the functions of an office, to mention the official title of
the officer at present executing the functions, or that of the officer
by whom the functions are commonly executed.
Example Suppose there is a Central Act called "The Tax Collection Act" which
specifies certain procedures for tax collection to be followed by tax
collectors. However, the Act is drafted in a way that it needs to specify
the individuals responsible for implementing these procedures without
mentioning specific names.
Under Section 17 of The General Clauses Act, 1897, the Act can simply
mention:
"The Tax Collection Act shall apply to the Tax Commissioner or any
other officer for the time being executing the functions of the Tax
Commissioner."
In this example:
• The term "Tax Commissioner" refers to the official title of the
officer responsible for overseeing tax collection.
• By stating "or any other officer for the time being executing
the functions of the Tax Commissioner," the Act covers
situations where someone other than the designated Tax
Commissioner is temporarily executing those functions.
In this example:
• The term "Chief Executive Officer" refers to the functionary
(individual holding a specific position) to whom the reporting
requirements apply.
• By stating "or any successor thereto," the Act ensures that the
reporting requirements extend to the successors of the Chief
Executive Officer, i.e., individuals who assume the role of CEO
in the future.
In this example:
• The term "Superintendent of Police" refers to the chief or
superior officer to whom the investigation procedures apply.
• By prescribing the duty of the Superintendent of Police to
ensure that the investigation procedures are followed by their
deputies or subordinates, the Act effectively extends the
applicability of the law to those deputies or subordinates who
are lawfully performing the duties of the SP in place of their
superior.
➢ then expressions used in the notification, order, scheme, rule, form or bye-law,
if it is made after the commencement of this Act,
➢ have the same respective meaning as in the Act or Regulation conferring the
power.
➢ or with respect to the person by whom, or the time when, or the place where,
or the manner in which, or the fees for which, anything is to be done under the
Act or Regulation,
➢ then that power may be exercised at any time after the passing of the Act or
Regulation, but rules, bye-laws or orders so make or issued shall not take effect
till the commencement of the Act or Regulation.
In United Commercial Bank v. Bhim Sain Makhija: A notice when required under the
statutory rules to be sent by registered post acknowledgement due' is instead sent by
'registered post' only, the protection of presumption regarding serving of notice under
'registered post' under this section of the Act neither tenable not based upon sound
exposition of law.
In Jagdish Singh.v Natthu Singh, it was held that where a notice is sent to the landlord
by registered post and the same is returned by the tenant with an endorsement of
refusal, it will be presumed that the notice has been served.
In Smt. Vandana Gulati v. Gurmeet Singh alias Mangal Singh, it was held that where
notice sent by registered post to person concerned at proper address is deemed to be
served upon him in due course unless contrary is proved. Endorsement 'not claimed/not
met' is sufficient to prove deemed service of notice.