Other laws – Module 3 – Chapter 2 Interpretation of Statutes

Interpretation of statutes gives us a guidance regarding how we should read and understand the law
in it’s actual sense, i.e in the true intention for which it was written. The chapter can be classified as;

Rules of Interpretation Aids of interpretation

These rules serve as a guide to help The various parts of an enactment Interpretation of Deeds
and understand the law, they are enumerated below may be referred and Documents
flexible in nature based on facts and to while interpreting or construing
circumstances. an enactment

Primary Rules Secondary Rules Internal Aids External Aids

1. Rule of Literal Construction 1. Doctrine of Noscitur a Sociis 1. Long title 1. Historical Setting
2. Rule of Reasonable Construction 2. Doctrine of Contemporanea 2. Preamble 2. Consolidating
3. Rule of Harmonious Construction Expositio 3. Heading statutes and previous
4. The Rule in Heydon's Case or 4. Marginal Notes laws
Mischief Rule 5. Definitional sections 3. Usage
5. Rule of Beneficial Construction 6. Illustrations 4. Earlier & Later Acts
6. Rule of Exceptional Construction 7. Proviso and Analohous Acts
7. Rule of Ejusdem Generis 8. Explanation 5. Dictionary
9. Schedules Definitions
10. Read the whole 6. Use of foreign
statute as a whole. decisions

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 Other laws – Module 3 – Chapter 2 Interpretation of Statutes

1. Rule of Literal Construction 2. Rule of Reasonable Construction / Golden rule of Construction

It is a cardinal rule of construction that a statute must be construed Generally the words or phrases of a statute are to be given their ordinary
literally and grammatically giving the words their ordinary and meaning. It is only when the words of an enactment are capable of two
natural meaning. Therefore, the language used in the statute constructions that there is scope for interpretation or construction. Then,
must be construed in its grammatical sense. The correct course is to that interpretation, which furthers the object, can be preferred to that
which is likely to defeat or impair the policy or object.
take the words themselves and arrive if possible, at their meaning
without reference to cases, in their first instance.
Similarly, when the grammatical interpretation leads to a manifest
absurdity then the courts shall interpret the statute so as to resolve the
If the phraseology of a statute is clear and unambiguous and capable inconsistency and make the enactment a consistent whole. This principle
of one and only one interpretation, then it would not be correct to is based on the rule that the words of a statute must be construed
extrapolate these words out of their natural and ordinary sense. reasonably so as to give effect to the enactment rather than reduce it to
When the language of a statute is plain and unambiguous it is not a futility.
open to the courts to adopt any other hypothetical construction
simply with a view to carrying out the supposed intention of the
legislature

Thus, it is the primary Thus, when grammatical

duty of the court to interpretation leads to certain
interpret the words used absurdity, it is permissible to
in legislation according depart there from and to interpret
to their ordinary the provision of the statutes in a
grammatical meaning in manner so as to avoid that
the absence of any absurdity. This departure from the
ambiguity or Doubt. grammatical construction is
permissible only to the extent it
avoids such absurdity and no
further. The courts are allowed to
deviate in these cases.

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 Other laws – Module 3 – Chapter 2 Interpretation of Statutes

3. Rule of Harmonious Construction 4. The Rule in Heydon’s case or Mischief rule

It is a basic rule of interpretation that if it is possible to avoid a conflict between two Where the language used in a statute is capable of more than one
provisions on a proper construction thereof, then it is the duty of the court to so interpretation, the most firmly established rule for construction is the
construe them that they are in harmony with each other. The statute must be read principle laid down in Heydon’s Case
as a whole and every provision in the statute must be construed with reference to
the context and other clauses in the statute so as to make the statute a consistent The intention of this rule is always to make such construction as
enactment and not reduce it to a futility. But where it is not possible to give effect to shall suppress the mischief and advance the remedy according to
both the provisions harmoniously, collision may be avoided by holding that one the true intention of the Legislation.
section which is in conflict with another merely provides for an exception or a
specific rule different from the general rule contained in the other. A specific rule
Four points to be considered by courts while using this rule!
will override a general rule
What was the law before the making of the act?
What was the defect, mischief, hardship caused by the earlier law?
But remember that this rule can be adopted only when there is a real and not
How does the act of Parliament seek to resolve or cure the mischief
merely apparent conflict between provisions, where the words of a statute, on a
or deficiency?
reasonable construction thereof, admit of one meaning only then such natural
What are the true reasons for the remedy?
meaning will prevail. The court shall not attempt an interpretation based on equity
and Harmonious construction.

In some cases, the statute may give a clear indication as to which provision is
subservient and which overrides. This is done by the use of the terms “subject to”, Thus the the courts shall
“notwithstanding” and “without prejudice”. make such construction as
will suppress the mischief
Subject to Notwithstanding Without Prejudice and advance the remedy
The impact of the words “subject A clause that begins with the When certain particular provisions and suppress the subtle
to” when used in a provision is words “notwithstanding anything follow general provisions and when it inventions and evasions for
that when the same subject contained” is called a non- is stated that the particular provisions the continuance of the
are without prejudice to those general mischief
matter is covered by that provision obstante clause. the
provisions the particular provisions
and by another provision or notwithstanding clause has the would not restrict or circumscribe the
enactment subject to which it effect of making the provision operation and generality of the
operates and there is a conflict prevail over others. When this preceding general provisions. In other
between them, then the latter will term is used then the clause will words, the particular provisions shall
Prevail over the former. prevail over the other provision(s) operate in addition to not in
mentioned therein. derogation of the general provisions.
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 Other laws – Module 3 – Chapter 2 Interpretation of Statutes

5. Rule of Beneficial Construction 6. Rule of Ejusdem Generis

This is strictly speaking not a rule but a method of interpreting a Where specific words pertaining to a class or category or genus
provision liberally so as to give effect to the declared intention of are followed by general words, the general words shall be
the legislation. Beneficial construction will be given to a statute, construed as limited to the Things of the same kind as those
which brings into effect provisions for improving the conditions of
specified.
certain classes of people who are under privileged or who have not
been treated fairly in the past. In such cases it is permissible to give
an extended meaning to words or clauses in enactments. But this This rule applies in the following cases;
can only be done when two constructions are reasonably possible The statute contains an enumeration of specific words
and not when the words in a statute are quite unequivocal (leaving The subject of enumeration constitutes a class or category;
no doubt, unambiguous). That class or category is not exhausted by the enumeration
General terms follow the enumeration; and
There is no indication of a different legislative intent.

In simple words, where

there are two or more
Exceptions where this Rule cannot be applied
ways of interpreting a
provision, choose the one f the preceding term is general, as well as that which follows,
which gives relief and this rule cannot be applied. (I.e. all terms are general terms)
protects the benefits
which are intented to be
Where the particular words exhaust the whole genus. (i.e.
given by the law.
all terms are covered by the specific words)

Where the specific objects enumerated are essentially

diverse in character. (i.e. covers everything possible)

Where there is an express intention of legislature that the

general term shall not be read ejusdem generis the specific
terms. (i.e. Law clearly expresses the reader not to use this rule)

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 Other laws – Module 3 – Chapter 2 Interpretation of Statutes

7. Rule of Exceptional Construction

AND / OR MAY / SHALL

The words May and shall must be used in their natural and
ordinary sense. May is a Directive provision, implying that it is
“And” is a particle joining an optional clause to be complied with, on the other hand
words and sentences and Shall is a Mandatory provision, it has to be done compulsorily
expressing the relation of The word “or” is a
connection or addition. The word disjunctive particle that
“and” is normally conjunctive. marks an alternative,
In its conjunctive sense the word generally corresponding to
is used to conjoin words, clauses “either”, as “either this or Cases where May shall be Cases where Shall would be
or sentences, Here requirement that”. in this case satisfying treated as shall. i.e. May has a treated as May. i.e. Shall has a
of both the provisions should be any of the clauses will be mandatory force Directory force
satisfied. sufficient.
1. where the subject involves a 1. where it has been used against
discretion coupled with an the government.
obligation (i.e. a power is given with
a duty to discharge the obligation) 2. where the intention of the
legislature so demands
However, Sometimes AND can be read as OR and OR can be read 2. where the word “May” has been
used in statute as a matter of pure 3. where giving it a mandatory
as AND based on the context where they are used. conventional courtesy. (i.e. for a interpretation would result in
mere formality) absurd results.
Example : NCLT shall dispose of the
3. using may as a directive provision case within 3 months (here extension
might defeat the object of the act is also possible) (or) Board shall accept
and cause damage to public or deny resignation of directors (here it can be
a benefit to public. interpreted as may accept)

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 Other laws – Module 3 – Chapter 2 Interpretation of Statutes

Secondary Rules of Interpretation

Doctrine of Noscitur a Sociis Doctrine of Contemporanea Expositio

Noscitur a Sociis means that when two or more This doctrine is based on the concept that a statute or a
words that are susceptible of analogous meaning, are document is to be interpreted by referring to the exposition it has
coupled together they are understood to be used in received from contemporary Authority. This means a law should
their cognate sense. They take, as it were, their color be understood in the sense in which it was understood at the
from each other, that is the meaning of the more time when it was passed.
general word being restricted to a sense analogous to
that of the less general. remember that this maxim is to be applied for construing
ancient statutes,But not to acts that are comparatively modern.
Example : “commercial establishment means an establishment
which carries on any business, trade or profession”, the word Example: Provisions related to physical transfer of shares in the
‘profession’ was construed with the associated words ‘business’ companies Act had more relevance in 1956.
and ‘trade’ and it was held that a private dispensary of a doctor
was not within the definition.

In simple words, this maxim states that give

importance to the economic situation and
environmental conditions that existed at the time
In simple words, where two when the law was passed while interpreting any
or more words are provision in the Act, such a provision might not
associated with each other, make much sense today practically, but was
read them together and relevant when the law was passed.
give them a combined
meaning instead of an
individual meaning.
CS CS Karthik Manikonda
(75501 37279)
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 Other laws – Module 3 – Chapter 2 Interpretation of Statutes

Internal Aids of Construction / Interpretation

1. Long Title 2. Preamble 3. Headings and Title of a 4. Marginal Notes

chapter
An enactment would have The Preamble expresses the Marginal notes are summaries
what is known as a ‘Short scope, object and purpose If we glance through any Act, and side notes often found at the
Title’ and also a ‘Long title. of the Act more we would generally find that a side of a section or group of
The short title merely comprehensively than the number of its sections referring sections in an act, purporting to
identifies the enactment Long Title. The Preamble may to a particular subject are sum up the effect of that section
and is chosen merely for recite the ground and the grouped together, sometimes or sections
convenience, The Long title cause of making a statute and in the form of chapters,
on the other hand, the evil which is sought to be prefixed by headings and/or Note : marginal notes appended to Articles of
the Constitution have been held to be part of
describes the enactment remedied by it. Titles.
the Constitution as passed by the Constituent
and does not merely Assembly and therefore have been used in
identify it. construing the Articles.

the Long Title of an Act

is a part of the Act. We the Preamble of a Statute is a part Heading & Titles can legitimately be
can, therefore, refer to it of the enactment and can referred to for the purpose of construing They are not a part of
to ascertain the object, legitimately be used for construing the enactment or its parts It may be the enactment, for they
scope and purpose of the it. However, the Preamble does not noted that headings may sometimes were not present when the
Act and so is admissible over-ride the plain provision of the be referred to know the scope of a Act was passed in
as an aid to its Act but if the wording of the statute section in the same way as the Parliament, but inserted
construction. gives rise to doubts as to its proper preamble where there is an ambiguity after the act has been so
construction the Preamble can and in the meaning of the sections on
passed. Hence they are not
ought to be referred to in order to which they can throw light. A heading
arrive at the proper construction. cannot override a section. an aid to construction.

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Other laws – Module 3 – Chapter 2 Interpretation of Statutes

Internal Aids of Construction / Interpretation

5. Illustrations 6. Schedules 7. Read the Statute as a whole 8. Explanation

We would find that many, The Schedules form part of It is the elementary principle that An Explanation is at times
though not all, sections have an Act. Therefore, they must construction of a statute is to be appended to a section to explain
illustrations appended to be read together with the made of all its parts taken the meaning of certain words or
them. These illustrations Act for all purposes of together and not of one part only. phrases used in the section or of
follow the text of the construction. However, the The deed must be read as a whole the purport of the section. An
Sections and, therefore, do expressions in the Schedule in order to ascertain the true Explanation may be added to
not form a part of the cannot control or prevail meaning of its several clauses, include something within the
Sections, meaning they are over the expression in the section or to exclude something
not the provision as itself, enactment. If there appears and the words of each clause from it.
but only uses the text of the to be any inconsistency should be so interpreted as to
section to give a better between the schedule and bring them into harmony with
understanding. the enactment, the other provisions.
enactment shall always
prevail. Example : If one section of an Act An Explanation should
requires ‘notice’ should be given, normally be so read as to
Example : The Companies Act then a verbal notice would generally harmonies with and clear
2013 has VII schedules be sufficient. But, if another section up any ambiguity in the
illustrations do form a part of provides that ‘notice’ should be
the statute and are considered to
attached to the Act main section. It should
‘served’ on the person or ‘left’ with
be of relevance and value in not be so construed as to
him, or in a particular manner or
construing the text of the sections. place, then it would obviously widen the ambit of the
However, illustrations cannot indicate that a written notice was section.
have the effect of modifying the intended.
language of the section and can
neither curtail nor expand the
ambit of the section.

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 Other laws – Module 3 – Chapter 2 Interpretation of Statutes

Internal Aids of Construction / Interpretation

9. Definitional sections Restrictive and extensive definitions

10. Proviso
The purpose of a definition 1. When a word is defined to ‘mean’ such
clause is two-fold: and such, the definition is ‘prima facie’ The normal function of a proviso is
(i) to provide a key to the restrictive and exhaustive we must restrict to except something out of the
proper interpretation of the the meaning of the word to that given in enactment or to qualify something
the definition section. Exception
enactment, and stated in the enactment which
(ii) to shorten the language Exception’ is intended to would be within its purview if the
2. where the word is defined to ‘include’
of the enacting part by restrain the enacting clause proviso were not there. Usually, a
Or ‘means and includes such and such,
avoiding repetition of the to particular cases. proviso is embedded in the main
the definition is ‘prima facie’ extensive:
same words contained in the here the word defined is not restricted to body of the section and becomes
definition part every time the meaning assigned to it but has Example : Rules of declaring an integral part of it. Provisos that
the legislature wants to refer extensive meaning which also includes dividend where company has are so included begin with the
to the expressions contained the meaning assigned to it in the inadequate profits is not words, “provided that”
in the definition. definition section applicable to government
company where 100% shares Example : Definition of Financial
are held by CG/SG. statement removes applicability of
cash flow statement to Small
Saving Clause company, dormant company and
Definitions subject to a
Ambiguous Definition OPC.
contrary context
Sometimes we may find that the Saving clause’ is used to
When a word is defined to bear a
definition section may itself be preserve from destruction Example 2 : Provided that no
number of inclusive meanings,
ambiguous, and so it may have certain rights, remedies or
to be interpreted in the light of
the sense in which the word is
privileges already existing in company shall declare divided
used in a particular provision prior statutes unless carried over previous year
the other provisions of the Act
must be ascertained from the
and having regard to the losses and depreciation not
context of the scheme of the A saving clause enables the
ordinary meaning of the word provided in previous year or years
Act, the language of the repealed law to continue in
defined. Such type of definition are set off against profit of the
provision and the object force for parts that are
is not to be read in isolation.
intended to be served thereby. necessary. company for the current year.

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External Aids to Interpretation

1. Historical Setting 2. Consolidating Statutes & 3. Usage 4. Dictionary Definitions: 5. Use of Foreign Decisions:
Previous Law:
This refers to how the law First we have to refer to Foreign decisions of countries
The history of the external following the same system of
circumstances which led to The Preambles to many has been used and the Act in question to find
jurisprudence as ours and
statutes contain expressions interpreted over the years out if any particular word
the enactment in question is given on laws similar to ours
such as “An Act to consolidate” by the public. This has to be or expression is defined in
of much significance in can be legitimately used for
the previous law, etc. In such a given importance while it. Where we find that a construing our own Acts.
construing any enactment. case, the Courts may stick to determining the true word is not defined in the However, prime importance
We have, for this purpose, to the presumption that it is not meaning of the legislation. Act itself, we may refer to is always to be given to the
take help from all those intended to alter the law. dictionaries to find out the language of the Indian
external or historical facts general sense in which that statute. Further, where
which are necessary in the word is commonly guidance can be obtained
understanding and understood. from Indian decisions,
reference to foreign decisions
comprehension of the may become unnecessary.
subject matter and the
scope and object of the
the Courts should
enactment. With the help of this aid,
be very unwilling to
it would help in solving
change that
doubtful points in the
interpretation of the
enactment and rejecting It is the fundamental rule that the
general usage of public, meanings of words and expressions used
the literal interpretation
unless they see cogent in an Act must take their color from the
History in general and where the interpretation is
(Clear, logical or context in which they appear. Further,
Parliamentary History in against the object of the
convincing) reasons for judicial decisions laying down the
particular, ancient statutes, act.
doing so. meaning of words in construing statutes
or other authentic works
in ‘pari materia’ (Reference material) will
and writings all are relevant have greater weight than the meaning
in interpreting and furnished by dictionaries. However, for
construing an Act technical terms reference may be made
to technical dictionaries

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External Aids of Interpretation Interpretation of Deeds and Documents

6. Earlier & Later Acts and Analogous (Comparable) Acts: A. The golden rule of construction is to ascertain the intention of the
parties to the instrument after considering all the words in their ordinary,
Where Two acts are read together natural sense. It states that;
1. The document is to be read as whole.
The general principle is that where there are different statutes in 2. The circumstances in which the particular words are used is to be
‘pari materia’ (i.e. in an analogous case), though made at different considered
times, or even expired and not referring to each other, they shall 3. the status and the training of the parties using the words have to be
be taken and construed together as one system and as explanatory taken into consideration (i.e. Their experience).
of each other. If there is any conflict when they are read together in
relation to certain provisions, refer to the act that is enacted at a B. It is an elementary rule of construction that the same word cannot have
later date. (Assumption is that when the later act was passed, the two different meanings in the same document, unless the context compels
law maker had the knowledge of the previous Act). the adoption of such a course.

Earlier Act explained by Later Act C. If There is a conflict between two or more clauses of the same
Where an old act is replaced by a new act, the latter act may be document. an effort must be made to resolve the conflict by interpreting
used to interpret the earlier act, only if both the acts are on the the clauses so that all the clauses are given effect to. If, however, it is not
same lines and a part of the earlier act is ambiguous. possible to give effect to all of them, then it is the earlier clause that will
over-ride the latter one. (because entire document is written on same
day, so what you write first stands valid).
Reference can be made to repealed part of an Act??
The repealed law would lose it’s operative force, however this Similarly, if one part of the document is in conflict with another part, an
would act as a history to the new law and hence reference can be attempt should always be made to read the two parts of the document
made con construing the un-repealed part. harmoniously, if possible. If that is not possible, then the earlier part will
prevail over the latter one which should, therefore, be disregarded

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Few Latin Terms To Summarise the chapter, General classification of Interpretation goes as
follows
absoluta sententia expositore (Nothing new, summary of what is already learnt)
non indiget
meaning Legal Doctrinal
“clear words need no explanation” (By law) (using principles)
Rule of Literal Construction

Interpretatio fienda est ut res magis valeat

quam pereat.
(Also means interpret words for it’s gramatical
meaning)
Logical
Authentic Usual
‘ut res magis valeat quam pereat When the rule of Grammatical when the court
meaning When the rule of interpretation goes beyond
“thereby that words of statute must be interpretation is is derived from when the court the words and
construed so as to lead to a sensible derived from the some other applies only tries to
meaning”
legislator himself source such as the ordinary discover the
Rule of Reasonable Construction
custom or case rules of speech intention of
I.e on plain law the statute in
generalia specialibus non derogant reading of the I.e using the some other
meaning law the I.e Using case rules like Literal Way
“A specific rule will override a general rule.”
interpretation is laws to come to Interpretation
Rule of harmonious construction clear an conclusion I.e Logical /
Reasonable
Construction
ptima legum interpres est consuetude”
meaning
“Custom is the best interpreter of law”
Doctrine of Contemporanea Expositio
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