Interpretation of Statutes and Its Rules
Interpretation of Statutes and Its Rules
Rules
Table of Contents
Introduction
Interpretation meaning
Construction meaning
Difference between Interpretation and Construction
o Interpretation
o Construction
Classification of Statutes
o Codifying statutes
o Consolidating statutes
o Declaratory statutes
o Remedial statutes
o Enabling statutes
o Disabling statutes
o Penal statutes
o Taxing statutes
o Explanatory statutes
o Amending statutes
o Repealing statutes
o Curative or repealing statutes
Rules of Interpretation
o Literal or Grammatical Rule
o The Mischief Rule
o The Golden Rule
o Five part analysis of the golden rule of interpretation
o Applicability and usage of golden rule of interpretation
o The judicial criticism faced on the application of golden rule
o Case laws
o Harmonious Construction
Conclusion
Introduction
One of the most substantial and the principal duty which are vested on the judiciary is the
interpretation of the statutes or law which are in force. When the courts deliver justice in a legal
dispute, they strictly abide with the boundaries framed by the legal frameworks which
encompasses certain laws, statutes, The Constitution and delegated legislations. The legal
framework of a democratic country like India includes a plethora of legislations and regulations.
The Legislature with the compliance of the procedural Parliamentary rules, formulates and drafts
certain written statutes and legislations. The courts deliver justice in a legal matter by interpreting
the underlying principles in these legislations. The written laws are substantiated by the courts
and justice is administered by the courts through the pronouncement of verdict over the legal
dispute. For the purpose of interpreting statues and to prevent any wrongful interpretation of the
laws, the court should follow certain rules to shape these laws. So, one of the most basic rules of
interpretation is the Literal rule of Interpretation of statutes where the court interprets the
wordings of the law as it is. However, there may be certain loopholes which may be found in the
law due to which it is not interpret a straight-forward understanding of the language of the
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statutes. It may lead to ambiguity and absurdity if the courts interpret the natural meaning of the
language used in the statute.
Interpretation meaning
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.
Construction meaning
In simple words, construction is the process of drawing conclusions of the subjects which are
beyond the direct expression of the text. The courts draw findings after analysing the meaning of
the words used in the text or the statutes. This process is known as legal exposition. There are a
certain set of facts pending before the court and construction is the application of the conclusion
of these facts.
The objective is to assist the judicial body in determining the real intention of the legislature. Its
aim is also to ascertain the legal effect of the legal text.
Interpretation Construction
1. In law, interpretation refers to exposing 1. Construction, on the other
the true sense of the provisions of the hand, refers to drawing
statutes and to understand the exact conclusions from the written
meaning of the words used in any text. texts which are beyond the
2. Interpretation refers to the linguistic outright expression of the
meaning of the legal text. legal text.
3. In the case where the simple meaning of 2. The purpose of construction
the text is to be adopted then the concept is to determine the legal
of interpretation is being referred to. effect of words and the
written text of the statute.
3. In the case where the literal
meaning of the legal text
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results in ambiguity then the
concept of construction is
adopted.
Classification of Statutes
Codified statutory law can be categorized as follows-
Codifying statutes
The purpose of this kind of statute is to give an authoritative statement of the rules of the law on a
particular subject, which is customary laws. For example- The Hindu Marriage Act, 1955 and
The Hindu Succession Act, 1956.
Consolidating statutes
This kind of statute covers and combines all law on a particular subject at one place which was
scattered and lying at different places. Here, the entire law is constituted in one place. For
example- Indian Penal Code or Code of Criminal Procedure.
Declaratory statutes
This kind of statute does an act of removing doubts, clarifying and improving the law based on
the interpretation given by the court, which might not be suitable from the point of view of the
parliament. For example- the definition of house property has been amended under the Income
Tax (Amendment) Act, 1985 through the judgement of the supreme court.
Remedial statutes
Granting of new remedies for enforcing one’s rights can be done through the remedial statutes.
The purpose of these kinds of statutes is to promote the general welfare for bringing social
reforms through the system. These statutes have liberal interpretation and thus, are not interpreted
through strict means. For example- The Maternity Benefits Act, 1961, The Workmen’s
Compensation Act, 1923 etc.
Enabling statutes
The purpose of this statute is to enlarge a particular common law. For example- Land
Acquisition Act enables the government to acquire the public property for the purpose of the
public, which is otherwise not permissible.
Disabling statutes
It is the opposite of what is provided under the enabling statute. Here the rights conferred by
common law are being cut down and are being restrained.
Penal statutes
The offences for various types of offences are provided through these statutes, and these
provisions have to be imposed strictly. For example- Indian Penal Code, 1860.
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Taxing statutes
Tax is a form of revenue which is to be paid to the government. It can either be on income that an
individual earns or on any other transaction. A taxing statute thus, levies taxes on all such
transactions. There can be income tax, wealth tax, sales tax, gift tax, etc. Therefore, a tax can be
levied only when it has been specifically expressed and provided by any statute.
Explanatory statutes
The term explanatory itself indicates that this type of statute explains the law and rectifies any
omission left earlier in the enactment of the statutes. Further, ambiguities in the text are also
clarified and checked upon the previous statutes.
Amending statutes
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.
Repealing statutes
A repealing statute is one which terminates an earlier statute and may be done in the express or
explicit language of the statute. For example- Competition Act, 2002 repealed the MRTP Act.
Rules of Interpretation
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
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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. The appellant challenged this trial to be violative under Article 20(2) of the Indian
Constitution. According to this article, no person shall be punished or prosecuted more than once
for the same offence. This is considered as double jeopardy.
It was held by the court that the Seas Act neither a court nor any judicial tribunal. Thus,
accordingly, he was not prosecuted earlier. Hence, his trial was held to be valid.
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.
State of Kerala v. Mathai Verghese and others, 1987 AIR 33 SCR(1) 317, in this case a person
was caught along with the counterfeit currency “dollars” and he was charged under section 120B,
498A, 498C and 420 read with section 511 and 34 of Indian Penal Code for possessing
counterfeit currency. The accused contended before the court that a charge under section 498A
and 498B of Indian Penal Code can only be levied in the case of counterfeiting of Indian currency
notes and not in the case of counterfeiting of foreign currency notes. The court held that the word
currency notes or bank note cannot be prefixed. The person was held liable to be charge-sheeted.
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this rule, the court held that the windows and balconies were taken to be an extension of the word
street and charge sheet was held to be correct.
Pyare Lal v. Ram Chandra, the accused in this case, was prosecuted for selling the sweeten
supari which was sweetened with the help of an artificial sweetener. He was prosecuted under the
Food Adulteration Act. It was contended by Pyare Lal that supari is not a food item. The court
held that the dictionary meaning is not always the correct meaning, thereby, the mischief rule
must be applicable, and the interpretation which advances the remedy shall be taken into
consideration. Therefore, the court held that the word ‘food’ is consumable by mouth and orally.
Thus, his prosecution was held to be valid.
Kanwar Singh v. Delhi Administration, AIR 1965 SC 871.
Issues of the case were as follows- section 418 of Delhi Corporation Act, 1902 authorised the
corporation to round up the cattle grazing on the government land. The MCD rounded up the
cattle belonging to Kanwar Singh. The words used in the statute authorised the corporation to
round up the abandoned cattle. It was contended by Kanwar Singh that the word abandoned
means the loss of ownership and those cattle which were round up belonged to him and hence,
was not abandoned. The court held that the mischief rule had to be applied and the word
abandoned must be interpreted to mean let loose or left unattended and even the temporary
loss of ownership would be covered as abandoned.
Regional Provident Fund Commissioner v. Sri Krishna Manufacturing Company, AIR 1962
SC 1526, Issue, in this Case, was that the respondent concerned was running a factory where four
units were for manufacturing. Out of these four units one was for paddy mill, other three
consisted of flour mill, saw mill and copper sheet units. The number of employees there were
more than 50. The RPFC applied the provisions of Employees Provident Fund Act, 1952 thereby
directing the factory to give the benefits to the employees.
The person concerned segregated the entire factory into four separate units wherein the number of
employees had fallen below 50, and he argued that the provisions were not applicable to him
because the number is more than 50 in each unit. It was held by the court that the mischief rule
has to be applied and all the four units must be taken to be one industry, and therefore, the
applicability of PFA was upheld.
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Whenever there is a shadow of scepticism casted on the grammatical construction of any law then
in such circumstances, the golden rule of interpretation can be applied on the law in order to
apply it to the facts in a legal dispute. The external manifestation of the underlying law which is
interpreted from reading between the lines projects the true intent of the legislature for which the
golden rule is used. By taking into consideration the consequences of the judgement, the judges
have the discretion to interpret the law in a rational manner. The analysis of Golden Rule can be
divided into five categories as discussed below:
WARBURTON’S CASE
Explaining the principle underlying the Golden rule, Justice Burton in the case of Warburton v.
Loveland observed that in the very first instance of application of law the grammatical sense of
the wordings of law must be paid heed. But if there is involvement of any absurdity,
inconsistency, or is against the declared purpose of the statute then in such circumstance, the
grammatical sense of the law can be modified or interpreted so far as there is no injustice caused
to the parties of the case. Even though the elementary rule of interpreting the words as it is in
their grammatical sense has been upheld by the courts in numerous cases like Madan Lal v.
Changdeo Sugar Mills, the courts should still be open to various interpretations of the law so that
no injustice is caused. This well-known rule was strictly formulated by Parke B. in the case
of Becke v. Smith wherein it was held that, the wordings of the law which are unambiguous and
plain nature should be construed in their regular sense even though, if in their assessment it is
absurd or promotes injustice. We assume the function of the legislature when we deviate from the
ordinary meaning of the statute due to which from the adherence to its literal meaning we prevent
the manifestation of injustice.
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LITERAL GOLDEN MISCHIEF
As described by Lord Granworth LC, this is a “Cardinal Rule ” which is a rule based on common
sense which is as strong as can be”. In the English cases, there are three basic rules as elucidated
by GW Paton. Those are:
1. Whatever the result, if the meaning of the wordings of law is plain then they should be
applied as per the Literal Rule.
2. Unless there is any ambiguity or absurdity in the wordings of the law, the ordinary sense
of the law should be resorted to as per the Golden Rule.
3. The general policy or intention of the statute must be considered and eliminate the evil
which was directed as per the Mischief Rule.
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interpreted by the court by using the Golden Rule in the case of Nyadar Singh v. Union of India.
This provision imposes a penalty if there is any reduction in the grade post or service or the pay
scale of the employee. It was adjudged by the Supreme Court that if any person is appointed to a
bigger post or pay grade, then he cannot be abridged to a lower pay grade or post due to which
this provision acquired a wider construction as interpreted by the Court. As per Maxwell, the
applicability of Golden Rule is significant in the area which is dedicated to the construction of
legislations to adjudge consequences and also the construction of certain provisions which
eliminate injustice and inconvenience or also evasion.
To explain the applicability of the Golden rule, the case of Free Lanka Insurance Co. Ltd. v.
Panasinghe can be referred where it was held that if a prisoner escapes from prison due to fire
accident, then he did not commit a felony under the Statute as this act committed by him was not
with the intention of getting freedom but it is to save his life. Similarly, if there is any act which
is done on certain justifiable grounds then that act would not qualify as criminal in nature.
The Supreme Court and High Court in India have applied the Golden Construction of Statutes in
various judgements as previously discussed. But there is a certain confusion which is observed
between the Golden rule and the Literal Rule as even though initially the literal meaning of the
statute is taken into consideration if it is plain and logical but if there is any trace of absurdity or
uncertainty then the interpretation of the court would pay a significant role. But if there is a
possibility that there is more than one meaning of the wording in the statute, then any addition,
substitution or rejection should be done by the court modifying the language so that the intention
of the legislature is expounded. Some of the landmark Indian cases in which the Golden Rule was
used was with respect to the interpretation of the provisions like “Section 23 of the
Representation of People’s Act, 1951” and Section 3A of the U.P. Sales Tax Act, 1948 which
were dealt with in Narendra Kiadivalapa v. Manikrao Patil and Annapurna Biscuit
Manufacturing Co. v. Commissioner of Sales Tax, U P respectively. Therefore, the applicability
of the Golden Rule of Interpretation in the Indian cases and the foreign cases has a narrow and
wide approach which needs to be observed by the courts in their working.
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Hughes and Elliot v Grey. It encroaches on the separation of powers by assigning judges a
legislative role, and judges can bring their own opinions, conscience, and preconceptions to a
matter, as seen in the case of DPP v Bull and Smith v Hughes.
Case laws
Tirath Singh v. Bachittar Singh, AIR 1955 SC 850
In this case, there was an issue with regard to issuing of the notice under section 99 of
Representation of People’s Act, 1951, with regard to corrupt practices involved in the election.
According to the rule, the notice shall be issued to all those persons who are a party to the
election petition and at the same time to those who are not a party to it. Tirath Singh contended
that no such notice was issued to him under the said provision. The notices were only issued to
those who were non-parties to the election petition. This was challenged to be invalid on this
particular ground.
The court held that what is contemplated is giving of the information and the information even if
it is given twice remains the same. The party to the petition is already having the notice regarding
the petition, therefore, section 99 shall be so interpreted by applying the golden rule that notice is
required against non-parties only.
State of Madhya Pradesh v. Azad Bharat Financial Company, AIR 1967 SC 276, Issues of the
case are as follows.
A transporting company was carrying a parcel of apples was challenged and charge-sheeted. The
truck of the transporting company was impounded as the parcel contained opium along with the
apples. At the same time, the invoice shown for the transport consisted of apples only.
Section 11 of the opium act 1878, all the vehicles which transport the contraband articles shall
be impounded and articles shall be confiscated. It was confiscated by the transport company that
they were unaware of the fact that opium was loaded along with the apples in the truck.
The court held that although the words contained in section 11 of the said act provided that the
vehicle shall be confiscated but by applying the literal rule of interpretation for this provision it is
leading to injustice and inequity and therefore, this interpretation shall be avoided. The words
‘shall be confiscated’ should be interpreted as ‘may be confiscated’.
State of Punjab v. Quiser Jehan Begum, AIR 1963 SC 1604, a period of limitation was
prescribed for, under section 18 of land acquisition act, 1844, that an appeal shall be filed for the
announcement of the award within 6 months of the announcement of the compensation. Award
was passed in the name of Quiser Jehan. It was intimated to her after the period of six months
about this by her counsel. The appeal was filed beyond the period of six months. The appeal was
rejected by the lower courts.
It was held by the court that the period of six months shall be counted from the time when Quiser
Jehan had the knowledge because the interpretation was leading to absurdity. The court by
applying the golden rule allowed the appeal.
Harmonious Construction
According to this rule of interpretation, when two or more provisions of the same statute are
repugnant to each other, then in such a situation the court, if possible, will try to construe the
provisions in such a manner as to give effect to both the provisions by maintaining harmony
between the two. The question that the two provisions of the same statute are overlapping or
mutually exclusive may be difficult to determine.
The legislature clarifies its intention through the words used in the provision of the statute. So,
here the basic principle of harmonious construction is that the legislature could not have tried to
contradict itself. In the cases of interpretation of the Constitution, the rule of harmonious
construction is applied many times.
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It can be assumed that if the legislature has intended to give something by one, it would not
intend to take it away with the other hand as both the provisions have been framed by the
legislature and absorbed the equal force of law. One provision of the same act cannot make the
other provision useless. Thus, in no circumstances, the legislature can be expected to contradict
itself.
Cases –
Ishwari Khaitan Sugar Mills v. State of Uttar Pradesh, in this case, the State Government
proposed to acquire sugar industries under U.P Sugar Undertakings (Acquisition) Act, 1971.
This was challenged on the ground that these sugar industries were declared to be a controlled
one by the union under Industries (Development and Regulation) Act, 1951. And accordingly,
the state did not have the power of acquisition of requisition of property which was under the
control of the union. The Supreme Court held that the power of acquisition was not occupied
by Industries (Development and Regulation) Act, 1951. The state had a separate power under
Entry 42 List III.
M.S.M Sharma v. Krishna Sinha, AIR 1959 SC 395.
Facts of the case are as follows- Article 19(1)(a) of the Constitution provides for freedom of
speech and expression. Article 194(3) provides to the Parliament for punishing for its contempt
and it is known as the Parliamentary Privilege. In this case, an editor of a newspaper published
the word -for- word record of the proceedings of the Parliament including those portions which
were expunged from the record. He was called for the breach of parliamentary privilege.
He contended that he had a fundamental right to speech and expression. It was held by the court
that article 19(1)(a) itself talks about reasonable freedom and therefore freedom of speech and
expression shall pertain only to those portions which have not been expunged on the record but
not beyond that.
Conclusion
Every nation has its own judicial system, the purpose of which to grant justice to all. The court
aims to interpret the law in such a manner that every citizen is ensured justice to all. To ensure
justice to all the concept of canons of interpretation was expounded. These are the rules which are
evolved for determining the real intention of the legislature.
It is not necessary that the words used in a statute are always clear, explicit and unambiguous and
thus, in such cases it is very essential for courts to determine a clear and explicit meaning of the
words or phrases used by the legislature and at the same time remove all the doubts if any. Hence,
all the rules mentioned in the article are important for providing justice.
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