Reference to other Statutes

Vande Matram! Interpretation of Statute is very important skill which every law professional must possess. Hence it is incorporated in the degree course of law. Let’s discuss how Reference to other Statutes used to interpret the statutes?

Reference to other Statutes

A statute must be read as a whole as words are to be understood in their context. Extension of this rule of context, permits reference to other statutes in pari materia, i.e. statutes dealing with the same subject matter or forming part of the same system, e.g. Section 304B of IPC must be read with Section 2 of the Dowry Prohibition Act as both of them deal with the dowry and related offences.

Viscount Simonds conceived it to be a right and duty to construe every word of a statute in its context and he used the word in its widest sense including other statutes in pari materia.

It is a well accepted legislative practice to incorporate by reference, if the legislature so chooses, the provisions of some other Act in so far as they are relevant for the purposes of and in furtherance of the scheme and subjects of the Act. Words in a later enactment cannot ordinarily be construed with reference to the meaning given to those or similar words in an earlier statute. But the later law is entitled to weight when it comes to the problem of construction.

Generally speaking, a subsequent Act of a legislature affords no useful guide to the meaning of another Act which comes into existence before the later one was ever framed. Under special circumstances the law does, however, admit of a subsequent Act to be resorted to for this purpose but the conditions, under which the later Act may be resorted to for the interpretation of the earlier Act are strict. Both must be laws on the same subject and the part of the earlier Act which is sought to be construed must be ambiguous and capable of different meanings.

Although a repealed statute has to be considered, as if it had never existed, this does not prevent the Court from looking at the repealed Act in pari materia on a question of construction.

The regulations themselves cannot alter or vary the meaning of the words of a statute, but they may be looked at as being an interpretation placed by the appropriate Government department on the words of the statute. Though the regulations cannot control construction of the Act, yet they may be looked at, to assist in the interpretation of the Act and may be referred to as working out in detail the provisions of the Act consistently with their terms.

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Use of foreign decisions

Vande Matram! Interpretation of Statute is very important skill which every law professional must possess. Hence it is incorporated in the degree course of law. Let’s discuss how are the foreign decisions used to interpret a statute?

Use of foreign decisions:

Reference to English and American decisions may be made, because they have the same system of jurisprudence as ours, but do not prevail when the language of the Indian statute or enactment is clear. They are of assistance in elucidating general principles and construing Acts in pari material. But Indian statutes should be interpreted with reference to the facts of Indian life.

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Precedents and judicial pronouncements

Vande Matram! Interpretation of Statute is very important skill which every law professional must possess. Hence it is incorporated in the degree course of law. Let’s discuss how are the precedents used to interpret a statute?

Precedents and judicial pronouncements:

A principle of law which has become settled by a series of decisions is generally binding on the courts and should be followed in similar cases. This is based on expediency and public policy.

“Per incuriam” are those decisions given in ignorance or forgetfulness of some statutory provisions or authority binding on the Court concerned, or a statement of law caused by inadvertence or conclusion that has been arrived at without application of mind or proceeded without any reasons so that in such a case some part of the decision or some step in the reasoning on which it is based, is found, on that account to be demonstrably wrong.

Judgments:

Ramkrishna Bus Transport and Ors v. State of Gujarat and Ors 1995 (1) G.L.H 520

While dealing with the provision of Sec. 207 of the Motor Vehicle Act, 1988, Hon’ble Mr. Justice C.K. Thakkar in the case of Ramkrishna Bus Transport and Ors v. State of Gujarat and Ors, 866 at Para. 43 held that, whether a particular provision is mandatory or directory depends upon intention of the Legislature and not only upon the language in which it is used. The meaning and intention of the Legislature must be treated as decisive and they are to be ascertained not only form the phraseology used but also by considering the nature, design and consequences which would flow from construing it one way or the other. It is also true that in certain circumstances, the expression ‘may’ can be construed as ‘shall’ or vice versa. At the same time, however, it cannot be ignored that ordinarily ‘may’ should read as ‘may’ which is permissive and not obligatory. For the purpose of giving effect to the clear intention of the legislature, ‘may’ can be read as ‘shall’ or ‘must’.

Mahadeolal Kanodia v. Administrator General of W.B. AIR 1960 SC 936

In Mahadeolal Kanodia v. Administrator General of W.B., the Supreme Court was concerned with the retrospectivity of law passed by the West Bengal Legislature concerning the rights of tenants and in para 8 of the judgment the Supreme Court held that: “8. The principles that have to be applied for interpretation of statutory provisions of this nature are well established. The first of these is that statutory provisions creating substantive rights or taking away substantive rights are ordinarily prospective; they are retrospective only if by express words or by necessary implication...”

Amireddi Raja Gopala Rao v. Amireddi Sitharamamma AIR 1965 SC 1970 : (1965) 3 SCR 122

In Amireddi Raja Gopala Rao v. Amireddi Sitharamamma, a Constitution bench was concerned with the issue as to whether the rights of maintenance of illegitimate sons of a Sudra as available under the Mitakshara School of Hindu law were affected by introduction of Sections 4, 21 and 22 of the Hindu Adoptions and Maintenance Act, 1956. The Court held that they were not, and observed in para 7 as follows: “7. ... a statute should be interpreted, if possible, so as to respect vested rights, and if the words are open to another construction, such a construction should never be adopted.”

ITO v. Induprasad Devshanker Bhatt AIR 1969 SC 778

In this case the Supreme Court, in context of a provision of the Income Tax Act, 1961, was concerned with the issue as to whether the Income Tax Officer could reopen the assessment under Sections 297(2)(d)(ii) and 148 of the Income Tax Act, 1961, although the right to reopen was barred by that time under the earlier Income Tax Act, 1922. The Supreme Court held that the same was impermissible and observed in para 5 as follows: “5. ... The reason is that such a construction of Section 297(2)(d)(ii) would be tantamount to giving of retrospective operation to that section which is not warranted either by the express language of the section or by necessary implication. The principle is based on the well-known rule of interpretation that unless the terms of the statute expressly so provide or unless there is necessary implication, retrospective operation should not be given to the statute so as to affect, alter or destroy any right already acquired or to revive any remedy already lost be efflux of time.”

Sakshi v. Union of Inaia & Others, (2004) 5 SCC 518

In this case the Supreme Court has observed that: “23. Stare decisis is a well-known doctrine in legal jurisprudence. The doctrine of stare decisis, meaning to stand by decided cases, rests upon the principle that law by which men are governed should be fixed, definite and known, and that, when the law is declared by a court of competent jurisdiction authorized to construe it, such declaration, in absence of palpable mistake or error, is itself evidence of the law until changed by competent authority. It requires that rules of law when clearly announced and established by a court of last resort should not be lightly disregarded and set aside but should be adhered to and followed. What is precludes is that where a principle of law has become established by a series of decisions, it is binding on the courts and should be followed in similar cases. It is a wholesome doctrine which gives certainty to law and guides the people to mould their affairs in future.

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Dictionaries and text books

Vande Matram! Interpretation of Statute is very important skill which every law professional must possess. Hence it is incorporated in the degree course of law. Let’s discuss how are the dictionaries and text books used to interpret a statute?

Dictionaries and text books:

The meaning of particular words in an Indian statute is to be found not so much in a strict etymological propriety of language nor even in popular sense, as in the subject or occasion on which they used. But it is well known that words are generally used in their ordinary sense and therefore, though dictionaries are not to be taken as authoritative in regard to the meanings of the words used in statutes, they may be consulted.

The use of dictionaries is limited to circumstances where the judges and Counsels use different words. In such cases the court may make use of standard authors and well known authoritative dictionaries. e.g. Merriam Webster Dictionary

Text books may also be refereed to for assistance in finding out the true construction of a statute. e.g. Transfer of Property Act, 1882 Commentary by Mulla.

Judgment:

Voltas Ltd. v. Rolta India Ltd. (2014) 4 SCC 516

In Voltas Ltd. v. Rolta India Ltd., the Supreme Court has held that: “Dictionaries can hardly be taken as authoritative exponents of the meanings of the words used in legislative enactments for the plainest words may be controlled by a reference to the context. Similarly, Lexicons would only define an expression in terms of a decision given by a Court of Law, and unless this decision was given under the Act in which the expression is used "it involves" in the words of Ram Lal,J. in Frim Karam Narain Daulat Ram v. Colkart Bros., A.I.R. 1946 Lah (F.B) pp.116, 128" a dangerous method of interpretation."

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Statement of objects and reasons

Vande Matram! Interpretation of Statute is very important skill which every law professional must possess. Hence it is incorporated in the degree course of law. Let’s discuss how are the statements of objects and reasons of an enactment used to interpret a statute?

Statement of objects and reasons:

The statements of objects and reasons cannot be used as an aid to construction. The statements of object and reason are not admissible as an aid to construction of a statute. Objects and reasons of a statute are to be looked into as an external aid to find out the legislative intent, only when the language is obscure or ambiguous.

The Statement of Objects and Reasons, seeks only to explain what reasons induced the mover to introduce the bill in the House and what objects he sought to achieve. But those objects and reasons may or may not correspond to the objective which the majority of members had in view when they passed it into law. The Bill may have undergone radical changes during its passage through the House or Houses, and there is no guarantee that the reasons which led to its introduction and the objects thereby sought to be achieved have remained the same throughout till the Bill emerges from the House as an Act of the Legislature, for they do not form part of the Bill and are not voted upon by the members. The Statements of Objects and Reasons appended to the Bill should be ruled out as an aid to the construction of a statute.

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Parliamentary History – Facts and circumstances

Vande Matram! Interpretation of Statute is very important skill which every law professional must possess. Hence it is incorporated in the degree course of law. Let’s discuss how is the history of an enactment used to interpret a statute?

Parliamentary History – Facts and circumstances:

The surrounding circumstances and situations which led to the passing of the Act can be considered for the purpose of construing a statute. The Court has now veered to the view that legislative history within circumspect limits may be consulted by Courts in resolving ambiguities.

It has already been noticed that the Court is entitled to take into account “such external or historical facts as may be necessary to understand the subject-matter of the statute”, or to have regard to “the surrounding circumstances” which existed at the time of passing of the statute. Like any other external aid, the inferences from historical facts and surrounding circumstances must give way to the clear language employed in the enactment itself.

In order to arrive at the intention of the legislature, the state of law and judicial decisions antecedent to and at the time the statute was passed are material matters to be considered. Evidence of matters relating to such surrounding circumstances and historical investigation of which judicial note can be taken by court, including reports of select committees and statements of objects and reasons, can be resorted to for ascertaining such antecedent law and for determining the intention of the legislature.

Moreover, plain words in the statute cannot be limited by any considerations of policy. An erroneous assumption by the legislature as to the state of the law has no effect and would not become a substantive enactment. In the construction of a statute the worst person to construe it is the person who is responsible for its drafting. Courts sometimes make a distinction between legislative debates and reports of committees and treat the latter as a more reliable or satisfactory source of assistance. The speeches made by the members of the House in the course of the debate are not admissible as external aids to the interpretation of statutory provisions.

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External aids used for interpretation of statute

Vande Matram! Interpretation of Statute is very important skill which every law professional must possess. Hence it is incorporated in the degree course of law. Let’s discuss about external aids used to interpret a statute.

External aids used for interpretation of statute:

Other than the internal aid to interpretation which are part of a statute itself there are other aids which are not part of the statute. These are known as external aid to interpretation. The court can consider recourse outside the Act. Recourse to external aid is justified only to well-recognized limits.

Where the words of an Act are clear and unambiguous, no resource to extrinsic matter, even if it consists of the sources of the codification, is permissible. But where it is not so, the Court can consider, apart from the internal aids, the prior events leading up to the introduction of the Bill, and subsequent events from the time of its introduction until its final enactment like the legislation, history of the Bill, Select Committee reports, etc.

The history of legislation, the enactments which are repealed, the parliamentary debates, dictionary commentaries etc. are the external aids to construction. It is important to point out here that the legislature adopts the device of making a statute by “reference” and by “incorporation”. When the statute is incorporated in another statue by the legislature, the incorporated statute or statute referred to therein is external aid for interpreting the statute in question.

There has been a controversy in India regarding the use of parliamentary debates for interpreting the Constitution. It is now settled that the court can always refer to the debates in the legislature while interpreting the statute to know the intention if there is a doubt about the provision. More often than not, a provision is introduced in the Bill and after some debate either it is altered or modified or amended before finally it receives the assent of the President.

Where the Legislature has not chosen to define the expression the court of law have, therefore, to fall back upon other aids for finding the intention of the Legislature; for example by reference to the context and object and purpose of the legislative measure in question. The court may further have resort to dictionaries and judicial interpretation of this award as used in other statutes; but it cannot be denied that these methods are not as satisfactory as a precise and clear legislative definition in the statute itself.

Judgments:

B. Prabhakar Rao v. State of Andhra Pradesh 1985 Suppl (2) SCR 573

In B. Prabhakar Rao v. State of Andhra Pradesh, the observations are:- "Where internal aids are not forthcoming, we can always have recourse to external aids to discover the object of the legislation. External aids are not ruled out. This is now a well settled principle of modern statutory construction. Thus 'Enacting History' is relevant: "The enacting history of an Act is the surrounding corpus of public knowledge relative to its introduction into Parliament as a Bill, and subsequent progress through, and ultimate passing by, Parliament. In particular it is the extrinsic material assumed to be within the contemplation of Parliament when it passed the Act." Again "In the period immediately following its enactment, the history of how enactment is regarded in the light of development from time to time."

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