Interpretation of Statues

By:
CA Kamal Garg
 Interpretation of Statues - Meaning
• Interpretation means:
1. ascertaining what intention is conveyed by a statute,
2. expressly or impliedly,
3. so far as is necessary to determine whether the facts of a
particular case fall within it or not
• Legal problem solving has two aspects:
1. discovery of the facts of a situation; and
2. ascertaining how law would apply to the those facts.
• For the second aspect, it is essential to determine what the true
intention of the law is. For example, different words and groups
of words have different meaning to different persons (like
“table” for a carpenter means an item of furniture but to an
accountant, it may mean a “spreadsheet” or a “matrix”).
• Hence, to ascertain the real intention of law, interpretation
is required.
 Rules of Interpretation (or Construction)
• To ensure that same methodology is used in all
cases requiring interpretation, certain rules
have evolved over the years;
• These can be classified broadly in two categories:
1. Primary Rules; and
2. Secondary Rules.
 Primary Rules
• Primary Rules are the rules which are used at the
first instance;
• It is recommended that these rules be used in the
order in which these are indicated below:
1. Rule of Literal or grammatical construction;
2. Rule of Reasonable construction (also known as Golden
Rule of Interpretation);
3. Rule of Harmonious construction;
4. Rule of Beneficial construction (also known as Mischief
Rule or Heydon’s Rule or Rule of Purposive
Construction);
5. Rule of Exceptional construction;
6. Rule of Ejusdem generis
 Secondary Rules
• Secondary Rules are the rules which are secondary to the
primary rules;
• These may be used in conjunction with or in addition to
the primary rules;
• These may be used when application of primary rules
do not provide a clear interpretation;
• These rules are stated below and do not find an order of
usage:
1. Noscitur a sociis: word is known by its companions;
2. Expressio unis est exclusio alterius: mention of one
thing is exclusion of others;
3. Contemporanea expositio: word should be interpreted
in the way it has been interpreted by contemporary
authorities.
 Literal or Grammatical Construction
• This Rule means that plain and natural meaning
must be given to a statute;
• As per this rule:
1. language must be construed grammatically;
2. words must be given ordinary meaning;
3. technical words must be given their technical meaning.
• Where a matter which should have been but has
not been provided for in the statute, Courts
cannot supply it as to do so would amount to
legislation and would not be construction [SC in
CIT, MP vs. Smt. Sodra Devi]
 Literal or Grammatical
Construction…..contd.
• Following must be considered while
applying this rule:
1. when words are clear, no interpretation is
required;
2. each word should be read;
3. no word should be added, unless it is
blatantly apparent that something is missing;
4. missing things cannot be added or supplied;
5. anomalies should stay and not be resolved;
6. no external or internal aid should be taken.
 Literal or Grammatical
Construction…..contd.
• Limitations/risks of this rule:
1. Very limited and used only when words have
only one standard meaning;
2. Fails when same word has different ordinary
meaning;
3. No emphasis is given to intent of law;
4. Presumes that draftsman cannot err so far as
his expression of intention is concerned;
5. Carries a risk of interpreting the intent of
draftsman instead of legislature.
 Literal or Grammatical
Construction…..contd.
• Example:
• Under Section 148 of Indian Contract
Act, 1872, “bailment” is defined as
delivery of goods by one person to
another……;
• Delivery as per this Rule will construct it
as follows:
1. Physical delivery; as well as
2. Symbolic delivery
Rule of Reasonable or Logical Construction
• It means that a statute must be given a logical
meaning;
• The meaning must be fair, sensible and rational;
• The meaning must be in accordance with the
intention of the statue seen in light of the
circumstances necessitating it;
• Limitations of this Rule:
1. leaves too much in the hands of the interpreter;
2. Persons with different levels of mental faculties
are bound to interpret same thing in different
fashion.
Rule of Reasonable or Logical Construction
• Example 1: Following notice is written in a park: “Do not
walk on the grass”
• The situation: A man is caught running on the grass and he
takes the plea that running on the grass has not been
provided on the notice board.
• Literal interpretation: Literal interpretation just leads to a
conclusion that running on the grass is not prohibited.
• So:
– the literal interpretation fails to bring the activity of running into the
ambit of walking;
– therefore, it is a fit case to trigger logical interpretation;
– now, the logical intention of the statute is to be seen, which is to
prohibit humans to spoil grass through the activities of walking
or alike;
– logical or reasonable interpretation would not only hold running but
also playing activities inclusive into the walking activity in it.
Rule of Reasonable or Logical Construction

• Example 2:
• “shall be signed by an officer of the firm” would
also mean
• “may also be signed by owner of the firm” as per
the rule of reasonable interpretation,
• the logic being that the owner is a superior authority
than the officer and it is he who in fact has authorized
the officer to sign.
 Rule of Harmonious Construction
• This Rule is adopted where there is a conflict
between two statutes or two provisions of the
same statute;
• It simply means that conflict between two different
meanings of same provision should be resolved
in such a manner that both can operate in
harmony;
• It is a reconciliatory rule;
• NOTE:
1. overriding provisions cannot be harmonised, since
they do not need harmonising;
2. the overriding provision is simply exceptions to the
main provision.
 Rule of Harmonious
Construction….contd.
• Example: Section 166 read with Section 210 of
the Companies Act, 1956;
• Usage:
This rule is generally used in interpreting
constitutional provisions, usually, to interpret the
analogous laws made by the Centre and the
State on the matters contained in concurrent
list.
 Mischief Rule or Heydon’s Rule or
Purposive Construction
• As per the mischief rule, the intention of legislature
behind an enactment should be respected and
followed;
• By this Rule, one is able to suppress the mischief
(mischievous meaning) and adopt the remedial
meaning (meaning that suits best to the intention of the
legislature);
• Analysis required as to what the legislature would have
actually intended while drafting the law (not the
particular provision but the whole law).
 Mischief Rule or Heydon’s Rule or
Purposive Construction
• Example:
1. Section 396 of the Companies Act, 1956 (i.e.
Amalgamation in Public Interest) vis-à-vis its
heading (i.e. Amalgamation in National
Interest);
NOTE:
1. This rule does not apply when the words are
clear;
2. This rule does not find application in financial
and taxation laws.
 Rule of Exceptional Construction
• This rule means that:
1. either the absurd words be interpreted
differently, in variation to their ordinary
dictionary meaning; or
2. be avoided, if their usage result in absurdity.
 Rule of Exceptional Construction
• Examples:
• “And” and “or”: These are conjunctive words
and must be given their ordinary meaning.
1. “And”: connotes an essential provision. In case “and” is
used between more than one provisions, all of them are
essential;
2. “or”: connotes a discretionary or alternate provision. If
“or” is used between more than one provision, either of
them may be satisfied and applied.
• “May” and “shall”:
1. “May”: has a directory force. “May” is a word signifying
seeking permission;
2. “Shall”: has a mandatory force. It usually signifies a
compulsory nature. "Shall” is a word signifying a
command.
 Rule of Exceptional Construction
• “Must”: essentially means a command. The actions
against which “must” is used demand a positive action
unless “must” is suffixed by “not”.
1. “shall” means “must” unless otherwise intended;
2. “may” never means “must”, unless otherwise
intended.

• Courts while interpreting mandatory and directory

provisions, try to ascertain the intention of the
legislature by using rules of interpretation.
 Rule of Ejusdem Generis
• Ejusdem generis means “of the same species or class”;
• As per this rule, the general words after specific words
(and not specific words after general words) shall be
construed with reference to the specifics;
• Examples:
• An Act permits keeping dogs, cats, cows and “other
animals”. The expression “other animals” would thus means
only domestic animals and not wild animals;
• Where there was prohibition on importation of ‘arms,
ammunition, or gunpowder or any other goods’ the words
‘any other goods’ where construed as referring to goods
similar to ‘arms, ammunition or gun powder’ (AG vs. Brown)
 Noscitur a sociis
• Two or more different words but having similar
meaning used together become cognate if they
are used together and must be understood in
the same sense.
• Example: Thus, “pet” dog would not include
“wild dog”, “wines and spirits” would mean
“beverages” and not “industrial alcohol”;
 Expressio unis est exclusio alterius
• It means one expression excludes the
possibility of the other;
• If two expressions are mutually exclusive,
presence of one will exclude the possibility of
happening other;
• Example: if a provision says “if alive”, then
the mere fact that the person is dead would
exclude all provisions applicable to that
person.
 Contemporanea exposition
• The interpretation given to a provision in an
existing legislation, which is acceptable at large,
would be considered contemporaneous, and
would apply to interpret the same again to the new
set of facts;
• Exceptions:
– does not apply to a new statute since there are
no chances of a contemporaneous exposition;
– does not apply if irrelevant to new set of facts
 Intrinsic aids of interpretation
• Assistance may be sought from the various portions of the
statute;
• Some intrinsic aids:
1. Title;
2. Heading (There may be headings of chapters and heading of
sections of the Act. Headings are not part of statute. Rather they
are given just for the matter of convenience);
3. Preamble;
4. Objects and Reasons;
5. Definitions;
6. Illustrations;
7. Proviso;
8. Explanations;
9. Schedules;
10. Marginal Notes (not the part of Act)
 Extrinsic aids to interpretation
• These are the tools referred from outside
the legislation;
• Some Extrinsic Aids:
1. History;
2. Socio-economic-political environment;
3. Reference to other statutes;
4. Dictionary;
5. Parliamentary Debates
THANK YOU