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INTERPRETATION OF STATUTES GENERAL CLAUSES ACT, 1897

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Page 1: General Clauses Act

INTERPRETATION OF STATUTES

GENERAL CLAUSES ACT, 1897

By

Iyalpari.S.R

527

VI Semester

Page 2: General Clauses Act

Legislative History— The first enactment of the kind was Lord Brougham’sAct.1 The

provisions of that statute were adapted to India, and somewhat amplified, by the General

Clauses Act (I of 1868), and the General Clauses Act (10 of 1897) was a further extension of

the same principle. It is obviously expedient that the legislative dictionary, as it may be

called, should be contained in a single enactment and that the two Acts above referred to

should be consolidated, and it seems desirable to take the opportunity of making any

additions that later experience may have suggested, and in particular to incorporate such

provisions of the Interpretation Act, 1889 (52 and 53 Vict., c.63), as are applicable to India.

The statute, like the Indian Act of 1887, was drafted by Sir C. Ilbert, and is in effect a careful

revise and extension of the latter. For example, the definition of “British India” in the English

Act of 1889 is merely an expansion of the definition given by the Indian Act of 1868. Its

legal effect is the same, but it is more intelligible, and it avoids a reference to another statute.

The proposed measure will have this further advantage that it will tend to secure uniformity

of language and construction in Indian and English legislation, in so far as both have to deal

with the same subject matter

Application— The General Clauses Act will apply to a provision which has been framed by

the Central Legislature. It is doubtful if it can apply to a provision framed not by an authority

competent to pass a Central Act or Regulation, but by an authority competent only to make a

local or State amendment.4 General Clauses Act is enacted in order to shorten language used

in parliamentary legislation and to avoid repetition of the same words in the course of the

same piece of legislation. Such an Act is not meant to give a hide-bound meaning to terms

and phrases generally occurring in legislation. That is the reason why the definition section

contains words like “Unless there is anything repugnant in the subject or context.” Words and

phrases have either a very narrow significance or a very wide significance according as the

context and subject of the legislation requires the one or the other meaning to be attached to

those words or phrases.5 When a function is vested by a statute in the State Government the

statutory provision, or a notification issued by the President, it has to be interpreted with the

aid of the General Clauses Act.6

Object— This Act does not propose to effect any change in the law. Its object, like that of

the Acts it consolidates, is to shorten the language of statutory enactments and to provide for

uniformity of expression in cases where there is identity of subject matter.

Legislative intent— Where the words used in a statute afford no guidance as to intention of

the legislature, the court should presume that the legislature intended an equitable and not an

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inequitable result.3 Beaumoni C.J.4 explained the duty of Judge in interpreting an Act of the

Legislature thus “The learned Magistrates, I think, fell into an error not uncommon in

construing Acts of the Legislature. He made up his mind, apart from the Act what was the

intention of the Legislature in passing the Act, and construed the Act so as to give effect to

his preconceived idea as to the Legislature’s intention. He made up his mind that the object of

the Legislature was to protect employee and nothing else and construed the Act so as to make

every part of it fit in with that object.

With all respect to the learned Magistrate, that is not the way to construe the Act. One has to

take the language as one finds it although, of course, one has to look at the Act as a whole

and construe it so as to give effect to what appears from the language of the whole Act to be

intention of the Legislature.”

INDIAN POSITION AND PRACTICES AND CASE LAWS ON REPEALS

In India, the earliest attempt that was made to guard against the normal legal effect of a repeal

is to be found in  section 6 of Act I of 1868. This provision was further elaborated by section

6 of the General Clauses Act of 1897 which is on the same lines as section 38(2)of the

Interpretation Act of England. The section is reproduced below for ready reference:

EFFECT OF REPEAL. —  Where this Act, or any Central Act or Regulation made after the

commencement of this Act, repeals any enactment hitherto made or hereafter to be made,

then, unless a different intention appears, the repeal shall not —

 (a)  revive anything not in force or existing at the time at which the repeal takes effect; or

 (b)  affect the previous operation of any enactment so repealed or anything duly done or

suffered thereunder; or

 (c)  affect any right, privilege, obligation or liability acquired, accrued or incurred

under any enactment so repealed; or

 (d)  affect any penalty, forfeiture or punishment incurred in respect of any offence committed

against any enactment so repealed; or

(e)  affect any investigation, legal proceeding or remedy in respect of any such

right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid;

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and any such investigation, legal proceeding or remedy may be instituted, continued or

enforced, and any such penalty, forfeiture or punishment may be imposed as if the repealing

Act or Regulation had not been passed.

INDIAN AND UK POSITION-CASE LAWS

The position therefore now in India as well as in England is that a repeal has not the drastic

effect which it used to have before the enactment of the Interpretation Act in England or the

General Clauses Act in this country.  But this is due entirely to the fact that an express

provision has been made in those enactments to counteract that effect.  Hence, in those cases

which are not covered by the language of the General Clauses Act, the principle already

enunciated will continue to operate. It should be remembered that the soundness of the law

which has been consistently applied to cases governed by statutes which have ceased  to be 

in force, by reason of having been repealed  or  having expired, has never been questioned,

and it cannot be brushed aside as if it embodied some archaic or obsolete rule peculiar only to

the common law of England. It is the law which has been enunciated by eminent Judges both

in England and in America and is based on good sense and reason[.Keshavan of Madhava

Menon.vs.The State Of Bombay. 1951 AIR  128]“

ENGLISH RULE:EFFECT OF REPEAL TO OBLITERATE THE STATUTE

Thus  the effect of repealing a statute  to  be,  to obliterate  it as completely from the records

of  Parliament as if it had never been passed; and it must be considered as a  law that never

existed except for the purpose  of  those action which were  commenced,  prosecuted  and 

concluded whilst it was an existing law.[ibid]" 

CHANGE IN ENGLISH RULE AND SUBSEQUENT CHANGES

This  was the rule of the English common law  which was applied  in cases of statutes which

were repealed and  under this rule all pending actions and prosecutions could not 

be proceeded with after the repeal of the law under which they were  started This rule was

however changed by the  Interpretation  Act of 1889, section 38. Therein it was  enacted that

unless the contrary intention appears, no repeal is  to affect any investigation, legal

proceeding,  including  the initiation  of criminal proceedings, or remedy in respect of any 

such right, privilege, obligation, liability,  penalty, forfeiture,  or  punishment and  any such

investigation, legal  proceeding or remedy may be instituted, continued  or enforced and any

such penalty, forfeiture or punishment  may be  imposed as if the repealing Act had not been

passed. A similar provision exists in India in section 6 of the General Clauses Act of 1868

and 1897. The High Court held that the provisions of article 13(1) were analogous to the

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repeal of a statute and therefore section 6 of the General Clauses Act had application to the

construction of ….  Provisions. [ibid]”

GENERAL DISCUSSION ABOUT SCOPE OF ENGLISH AND INDIAN THEORY

SCHEME OF SECTION 6 OF GENERAL CLAUSES ACT,1897

Section 6 of the General Clauses Act occurs in group of Sections 5 to 13 and the heading of

that group of Sections is, "General rules of construction". In cases where a provision of the

Act by its terms does not apply, Courts have applied its principle because of the

inconvenience that would otherwise result. [Swarnath Bhatia - Appellant, AIR (35)

1948 Madras 427]. Calcutta High Court in the case of Benoari Lal Sarma and Others v.

Emperor, , took the view that,

"The rule of interpretation in Section 38 of the Interpretation Act, 1889 is a principle which

exists independently of the Interpretation Act and, therefore, applies as effectually to the

Letters Patent as to a statute. It is true that the Letters Patent is not an Act, but it is granted by

the Sovereign by virtue of an Act passed by the Parliament and should be construed in the

same way as an Act. Further, even if Section 38, Interpretation Act, does not apply in terms

to the Letters Patent, the principle underlying Section 38 should be applied in construing

clause 44 of the Letters Patent."

ENGLISH AND INDIAN DOCTRINE

Supreme Court in the case of National Sewing Thread Co. Ltd., Chidambaram v. James

Chandwick and Bros. Ltd. - observed,

"The Canon of construction of statutes enunciated in Section 38, Interpretation Act, and

reiterated with some modifications in Section 8, General Clauses Act, is one of general

application where statutes or Acts have to be construed and there is no reasonable ground for

holding that that rule of construction should not be applied in construing the charters of the

different High Courts. These charters were granted under statutory powers and are subject to

the legislative power of the Indian Legislature. Assuming however, but not conceding, that

strictly speaking the provisions of the Interpretation Act and the General Clauses Act do not

for any reason apply, there is no justification for holding that the principles of construction

enunciated in those provisions have no application for construing these charters."

Applying this, it was held in State v. Fateh Chand, AIR 1955 M.B. 82, that, if for some

reason or other, the General Clauses Act cannot be applied in terms, its principles (and, in

particular, the principle of Section 6 can be extended to construe the law.

Madhya Pradesh High Court in the case of Bhupendra Kumar Jain v. Y. S. Dharmadhikari

and Others, observed,

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"No doubt. Section 13 of the Act is applicable to Central Acts and Regulations only; but

unless the context otherwise requires, the same rule of construction should be applied to the

State Bar Council Election Rules framed under the Advocates Act, 1961, which is a Central

Act."

 Govinda Menon, J. in the case of Swarnath Bhatia, AIR 1948 Madras 427, observed,

"The defense of India Rules should be interpreted in accordance with the principles laid down

in the General Clauses Act."

 Even when there is no express saving, the principles of Section 6 of the General Clauses Act

have been applied and it has been held that Section 6 applies to repeal and this principle

applies to amendment of prior enactments. Heading of the group of Sections 5 to 13 of the

General Clauses Act shows that these are merely General Rules of construction which have

been codified but they are not rules of construction which were for the first time created by

the General Clauses Act. These rules were there under Common Law. General Clauses Act

applies to Central Acts and Regulations but that does not mean that Courts cannot take

advantage of the settle principles of construction of Central Acts being applied to the

Subordinate Legislation as well.

What is the effect of repeal and what should be the line of approach of Court in case of repeal

has been succinctly brought out in the case of State of Punjab v. Mohar Singh Pratap Singh

AIR 1955 S.C.

 In para 6 learned Judge noticed the Law of England as it stood prior to the Interpretation Act

of 1889 and also noticed the consequences of the Interpretation Act, 1889. Learned Judge

observed as under :

"Under the law of England, as it stood prior to the Interpretation Act of 1889, the effect of

repealing a statute was said to be to obliterate it as completely from the records of Parliament

as if it had never been passed, except for the purpose of those actions, which were

commenced, prosecuted and concluded while it was an existing law : Vide Craies on Statute

Law : 5th edn. page 323.

EFFECT OF REPEAL WITHOUT A SAVING CLAUSE 

A repeal therefore without any saving Clause would destroy any proceeding whether not yet

begun or whether pending at the time of the enactment of the Repealing Act and not already

prosecuted to a final judgment so as to create a vested right; Vide Crawford on Statutory

Constitution pp. 599-600. To obviate such results a practice came into existence

in England to insert a saving clause in the repealing statute with a view to preserve rights and

liabilities already accrued or incurred under the repealed enactment.

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Later on, to dispense with the necessity of having to insert a saving clause on each occasion,

Section 38(2) was inserted in the Interpretation Act of 1889 which provides that a repeal,

unless the contrary intention appears, does not affect the previous operation of the repealed

enactment or anything duly done or "suffered under it and any investigation, legal proceeding

or remedy may be instituted, continued or enforced in respect of any right, liability and

penalty under the repealed Act as if the Repealing Act has not been passed. Section Section

38(2) of the General Clauses Act, as is well known, is on the same lines as Section 38(2) of

the Interpretation Act of England.

Under Section 30 of the General Clauses Act, which corresponds to Section 27 of the Punjab

Act, the provisions of the Act are applicable to Ordinances as well. Of course, the

consequences laid down in Section 6 of the Act will apply only when a statute or regulation

having the force of a statute is actually repealed. It has no application when a statute, which is

of a temporary nature, automatically expires by efflux of time. The Ordinance in the present

case was undoubtedly a temporary statute but it is admitted that the period during which it

was to continue had not expired when the Repealing Act was passed. The repeal therefore

was an effective one which would normally attract the operation of Section 6 of the General

Clauses Act. The controversy thus narrows down to the short point as to whether the fact of

the repeal of the Ordinance being followed by re-enactment would make the provision of

Section 6 of the General Clauses Act inapplicable to the present case."

Again in para 8, learned Judge observed,

"Whenever there is a repeal of an enactment, the consequences laid down in Section 6 of the

General Clauses Act will follow unless, as the section itself says, a different intention

appears. In the case of a simple repeal there is scarcely any room for expression of a contrary

opinion. But when the repeal is followed by fresh "legislation on the same subject we would

undoubtedly have to look to the provisions of the new Act, but only for the purpose of

determining whether they indicate a different intention.

The line of enquiry would be, nor whether the new Act expressly keeps alive old rights and

liabilities but whether it manifests an intention to destroy them. We cannot therefore

subscribe to the broad proposition that Section 6 of the General Clauses Act is ruled out when

there is repeal of an enactment followed by a fresh legislation. Section 6 would be applicable

in such cases also unless the new legislation manifests an intention incompatible with or

contrary to the provisions of the section. Such incompatibility would have to be ascertained

from a consideration of all the relevant provisions of the new law and the mere absence of a

saving clause is by itself not material.  

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INDIAN CASE LAWS

Following decided Indian cases would reveal, that Indian courts have interpreted Section 6 of

the said Act in the same manner as the similar provisions have been interpreted by the

English and American courts.

IN 1919 Oudh 217, it has been held that where an Act repeals a previous Act and provides

that all orders issued under the repealed Act shall, so far as may be, be deemed to have been

issued under the new Act, or is repealed with proviso 'except as to things done under it' the

provision is designed to safeguard the validity of orders, appointments, etc., issued under the

repealed Act and not to give retrospective effect to the new Act.

NO.1

A Seven Judge Bench of this Court by majority laid down in Keshavan Madhava Menon vs.

The State of Bombay,(1951) SCR 228, that the Court was concerned with the legality of the

prosecution of the appellant for contravention of the Indian Press (Emergency Powers) Act,

1931. The offence had been committed before the Constitution came into force and a

prosecution launched earlier was pending after January 26, 1950. The enactment which

created the offence was held to be void under Article 19(1)(a) read with Article 13 as being

inconsistent with one of the Fundamental rights guaranteed by Part III of the Constitution. In

the circumstances, the point that was debated before this Court was whether the prosecution

could be continued after the enactment became void. In this case, the Court by a majority

judgment held that the Constitution was prospective in its operation and that Art. 13(1) would

not affect the validity of these proceedings commenced under pre-Constitution laws which

were valid up to the date of the Constitution coming into force, for to hold that the validity of

these proceedings were affected would in effect be treating the Constitution as retrospective.

Therefore, it was considered that there was no legal objection to the continuance of the

prosecution.

No.2

The controversy in issue was dealt with comprehensively with meticulous precision by a

Constitution Bench of this Court in State of Punjab vs. Mohar Singh  (1955) 1 SCR 893.

Respondent Mohar Singh filed a claim as an evacuee under the East Punjab Refugees

(Registration of Land Claims) Act, 1948. The claim was investigated into and it was found to

be false; it was held to be an offence under the Act. At the trial, on his confession, the

respondent was convicted and sentenced to imprisonment. On suo motu revision, the District

Magistrate found the sentence to be inadequate and referred the case to the High Court. The

High Court found that since the ordinance was repealed, he could not be convicted under

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Section 7 of the Act. This Court, on appeal, reversed the decision and upheld the conviction

applying Section 6 of the General Clauses Act. The principle which has been laid down in

this case is that whenever there is a repeal of an enactment, the consequences laid down in

section 6 of the General Clauses Act will follow unless, as the section itself says, a different

intention appears. In the case of a simple repeal there is scarcely any room for expression of a

contrary opinion. But when the repeal is followed by fresh legislation on the same subject we

would undoubtedly have to look to the provisions of the new Act, but only for the purposes of

determining whether they indicate a different intention. The line of enquiry would be, not

whether the new Act expressly keeps alive old rights and liabilities but whether it manifests

an intention to destroy them. We cannot therefore, subscribe to the broad proposition that

Section 6 of the General Clauses Act is ruled out when there is repeal of an enactment

followed by a fresh legislation. Section 6 would be applicable in such cases also unless the

new legislation manifests an intention incompatible with or contrary to the provisions of the

section.

No.3

In the case of Brihan Maharashtra Sugar Syndicate vs. Janardan  AIR 1960 SC 794, it was

observed as under:

"Section 6 of the General Clauses Act provides that where an Act is repealed, then, unless a

different intention appears, the repeal shall not affect any right or liability acquired or

incurred under the repealed enactment or any legal proceeding in respect of such right or

liability and the legal proceeding may be continued as if the repealing Act had not been

passed. There is no dispute that Section 153- C of the Act of 1913 gave certain rights to the

share-holders of a company and put the company as also its directors and managing agents

under certain liabilities. The application under that section was for enforcement of these

rights and liabilities. Section 6 of the General Clauses Act would therefore preserve the rights

and liabilities created by Section 153-C of the Act of 1913 and a continuance of the

proceeding in respect thereof would be competent in spite of the repeal of the Act of 1913,

unless of course a different intention could be gathered."

 No.4

A Constitution Bench of this Court in State of Orissa vs. M.A. Tulloch and Co., (1963) 4

SCR 461, also had an occasion to examine the controversy regarding repeal of the Act. The

submission in this case was that the supersession of the Orissa Act by the Central Act was

neither more nor less than a repeal. The reference was made to Section 6 of the General

Clauses Act, 1897 which has been reproduced (supra). In the said case, the submission was

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that the interpretation of the Section was two-fold: (1) the word 'repeal' used in the opening

paragraph was not confined to express repeal but that the word was comprehensive enough to

include cases of implied repeals; (2) it was submitted that if the expression 'repeal' in Section

6(b) be deduced as being confined to express repeals, still the principle underlying Section 6

was of general application and capable of being attracted to cases of implied repeals also. In

M.A. Tulloch's case (supra), the Court aptly observed that we have to inquire the principle on

which the saving clause in Section 6 is based. It is manifest that every later enactment which

supersedes an earlier one or pouts an end to an earlier state of the law is presumed to intend

the continuance of rights accrued and liabilities incurred under the superseded enactment

unless there were sufficient indications - express or implied - in the later enactment designed

to completely obliterate the earlier state of the law.

The next question is whether the application of that principle could or ought to be limited to

cases where a particular form of words is used to indicate that the earlier law has been

repealed. The entire theory underlying implied repeals is that there is no need for the later

enactment to state in express terms that an earlier enactment has been repealed by using any

particular set of words or form of drawing but that if the legislative intent to supersede the

earlier law is manifested by the enactment of provisions as to effect such supersession, then

there is in law a repeal notwithstanding the absence of the word 'repeal' in the later statute.

Now, if the legislative intent to supersede the earlier law is the basis upon which the doctrine

of implied repeal is founded, could there be any incongruity in attributing to the later

legislation the same intent which Section 6 presumes where the word 'repeal' is expressly

used.

No.5

EXPRESS OR IMPLIED REPEAL AND EFFECTS

So far as statutory construction is concerned, it is one of the cardinal principles of the law that

there is no distinction or difference between an express provision and a provision which is

necessarily implied, for it is only the form that differs in the two cases and there is no

difference in intention or in substance.

A repeal may be brought about by repugnant legislation, without even any reference to the

Act intended to be repealed, for once legislative competence to effect a repeal is posited, it

matters little whether this is done expressly or inferentially or by the enactment of repugnant

legislation.

If such is the basis upon which repeals and implied repeals are brought about it appears to us

to be both logical as well as in accordance with the principles upon which the rule as to

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implied repeal rests to attribute to that legislature which effects a repeal by necessary

implication the same intention as that which would attend the case of an express repeal.

Where an intention to effect a repeal is attributed to legislature then the same would, in our

opinion, attract the incident of the saving found in Section 6 for the rules of construction

embodied in the General Clauses Act are, so to speak, the basic assumptions on which

statutes are drafted. The Court examined the ambit and scope of Section 6 of the General

Clauses Act, 1897 in Tulloch's case.

According to the ratio of the said judgment, the principal underlying Section 6 of the General

Clauses Act, 1897 is that every later enactment which supersedes an earlier one or puts an

end to an earlier state of the law is presumed to intend the continuance of rights accrued and

liabilities incurred under the superseded enactment unless there were sufficient indications

expressed or implied in the later enactment designed to completely obliterate the earlier state

of the law. In view of the interpretation what follows is absolutely clear that unless a different

intention appears in the repealing Act, any legal proceeding can be instituted and continued in

respect of any matter pending under the repealed Act as if that Act was in force at the time of

repeal. In other words, whenever there is a repeal of an enactment the consequences laid

down in Section 6 of the General Clauses Act will follow unless, as the section itself says, a

different intention appears in the repealing statute.

In case the repeal is followed by fresh legislation on the same subject the court has to look to

the provisions of the new Act for the purpose of determining whether they indicate a different

intention. The question is not whether the new Act expressly keeps alive old rights and

liabilities but whether it manifests an intention to destroy them. The application of this

principle is not limited to cases where a particular form of words is used to indicate that the

earlier law has been repealed. As this Court has said, it is both logical as well as in

accordance with the principle, upon which the rule as to implied repeal rests, to attribute to

that legislature which effects a repeal by necessary implication the same intention as that

which would attend the case of an express repeal. Where an intention to effect a repeal is

attributed to a legislature then the same would attract the incident of saving found in Section

6.

No.6

In the case of Munshilal Beniram Jain Glass Works vs. S. P. Singh , (1971) II S.C.J. July-

December p. 307, this Court held that under Section 6 would apply to a case of repeal even if

there is a simultaneous enactment unless a contrary intention appears from the new

enactment.

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No.7

In Qudrat Ullah vs. Municipal Board, Bareilly, (1974) 1 SCC 202, the Court held that the

general principle is that an enactment which is repealed is to be treated, except as to

transactions passed and closed, as if it had never existed. However, the operation of this

principle is subject to any savings which may be made, expressly or by implication, by the

repealing enactment. If a contrary intention appears from the repealing Statute, that prevails.

No.8

A three-Judge Bench of this Court in India Tobacco Co. Ltd. vs. CTO, (1975) 3 SCC 512,

held that repeal is not a matter of mere form but is of substance, depending on the intention of

the legislature. If the intention indicated either expressly or by necessary implication in the

subsequent statute was to abrogate or wipe off the former enactment wholly or in part, then it

would be a case of total or pro tanto repeal. If the intention was merely to modify the former

enactment by engrafting an exception or granting an exemption, or by super-adding

conditions, or by restricting, intercepting or suspending its operation, such modification

would not amount to a repeal. Broadly speaking, the principal object of a repealing and

amending Act is to 'excise dead matter, prune off superfluities and reject clearly inconsistent

enactments'.

WHAT IS REPEAL AND SIMULTANEOUS RE-ENCATMENT

When there is a repeal and simultaneous reenactment, Section 6 of the General Clauses Act

would apply to such a case unless contrary intention has been gathered from the repealing

Act. Section 6 would be applicable in such cases unless the new legislation manifests

intention inconsistent with or contrary to the application of the section. When the repeal is

followed by a fresh legislation on the same subject, the Court would undoubtedly have to

look to the provisions of the new Act only for the purpose of determining whether the new

Act indicates different intention. The object of repeal and reenactment is to obliterate the

Repealed Act and to get rid of certain obsolete matters.

No.9

In Commissioner of Income Tax vs. Shah Sadiq and Sons  AIR 1987 SC 1217, this Court

observed that a right which had accrued and had become vested, continued to be capable of

being enforced notwithstanding the repeal of the statute under which that right accrued unless

the repealing statute took away such right expressly or by necessary implication. This is the

effect of Section 6 of the General Clauses Act, 1897.

No.10.

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In M/s Gurcharan Singh Baldev Singh v. Yashwant Singh and Ors.  (1992) 1 SCC 428, the

Court observed that the objective of Section 6(c) of the General Clauses Act, 1897 is to

ensure protection of any right or privilege acquired under the repealed Act. The only

exception to it is legislative intention to the contrary. That is, the repealing Act may expressly

provide or it may impliedly provide against continuance of such right, obligation or liability.

No.11

In Gajraj Singh and Others vs. State Transport Appellate Tribunal and Others  (1997) 1 SCC

650, a permit under Section 47(3) of the Motor Vehicles Act, 1939 was granted to the

appellant for a period of 3 years. The Motor Vehicles Act, 1988 came into force with effect

from 1.7.1989. The question arose whether the renewal of the permit of the appellant granted

under the repealed Act is a permit under the Act and its operation was saved by Section

217(2)(a) read with sub-section (4) thereof. Therefore, the second renewal granted under

Section 81 was valid in law. There was no need for the appellant to obtain a fresh permit

under the Act as the renewal is a continuation of the original permit which is a vested right.

The effect of saving provisions in Section 217(2) (a) is to allow all the permits granted under

the Repealed Act to continue after renewal under the Act. Section 217(2) (a) and sub-section

(4), thus, obviate the need to obtain fresh permit under the Act and, therefore, it would be

unnecessary. According to the appellant, the Act is not intended to lay down that after the Act

came into force, all the holders of stage carriage permits granted under the Repealed Act

would be required to obtain fresh permits under the Act. Section 6 of the General Clauses

Act, 1897 read with Sections 217(2) (a) and (4) saves operation of all those permits which

were alive when the Act came into force. Consequently, renewals granted under Section 81

were valid.

WHEN PROCEEDINGS UNDER REPEALED ACT TO CONTINUE: 

In Gajraj Singh's case (supra), the Court observed that the proceedings under the Repealed

Act would be continued and concluded under the Act as if the Act was not enacted.

The Court observed that four things would emerge from its operation.

Condition

One, there must exist a corresponding provision under the Act pari materia with the Repealed

Act;

two, the order of permit granted must exist and be in operation on the day on which the Act

had come into force;

three, it must not be inconsistent with the provisions of the Act and,

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fourth, the positive act should have been done before 1.7.1989. Positive Act should have

been done before the repeal of the Act to further secure any right. All the four conditions

should be satisfied as conditions precedent for application of Section 6 of the General Clauses

Act.