INTERPRETATION OF STATUTES

[Mr. M. GOVINDARAJAN]

Interpretation

• Interpretation means the art of finding out the true sense of an enactment by giving the words of the enactment their natural and ordinary meaning.
• SALMOND -  ‘by interpretation or construction is meant, the process by which the courts seek to ascertain the meaning of the legislature through the medium of authoritative forms in which it is expressed.’
• Interpretation is a familiar process of considerable significance. In relation to statute law, interpretation is of importance because of the inherent nature of legislation as a source of law.
• The process of statute making and the process of interpretation of statutes are two distinct activities.

Object of interpretation

• The object of interpretation of statutes is to determine the intention of the legislature conveyed expressly or impliedly in the language used.

Principles of interpretation

• The fundamental principle of statutory interpretation is that the words of a statute be read in their entire context and in their grammatical and ordinary sense harmoniously with the scheme of the Act, the object of the Act, and the intention of the legislature.

Statutory interpretation                  

• Statutory interpretation is the process by which courts interpret and apply legislation.
• Some amount of interpretation is often necessary when a case involves a statute.
• Sometimes the words of a statute have a plain and straightforward meaning.
• But in many cases, there is some ambiguity or vagueness in the words of the statute that must be resolved by the judge.
• To find the meanings of statutes, judges use various tools and methods of statutory interpretation, including traditional canons of statutory interpretation, legislative history, and purpose.
• In common law jurisdictions, the judiciary may apply rules of statutory interpretation both to legislation enacted by the legislature and to delegated legislation such as administrative agency regulations.

Why interpretation requires?

• Justice G.P. Singh pointed out the importance of interpretation of statutes. 
• Legislation in modern State is actuated with some policy to curb some public evil or to effectuate some public benefit.
• The legislation is primarily directed to the problems before the Legislature based on information derived from past and present experience.
• It may also be designed by use of general words to cover similar problems arising in future.
• But, from the very nature of things, it is impossible to anticipate fully the varied situations arising in future in which the application of the legislation in hand may be called for, and, words chosen to communicate such indefinite ‘referents’ are bound to be, in many cases lacking in clarity and precision and thus giving rise to controversial questions of construction.

Essentials of interpretation of a Statute

• To ascertain the correct meaning of the word in a statute.
• If more than one meaning could be derived from the same word or sentence or the provision giving different meaning which will defeat the objectives of the law –there is need to ascertain the real intention of the statute.
• Legislative intent-

• Concept of meaning – what the word ‘means’; and
• The concept of ‘purpose’, ‘object’, ‘reason’, ‘spirit’ pervading through the statute
• Ongoing exercise as new facts and conditions continue to arise.

Some important points-

• The statute must be read as a whole in context;
• Statue must be construed as effective and workable.
• The process of construction – both literal and purposive construction which highlights that you should shift from literal construction while it leads to absurdity.

Statute

• Constitution
• Central Acts
• State Acts
• Ordinance
• Bye laws
• Rules
• Regulations
• Notifications
• Circulars
• Instructions
• Clarifications
• Directions

Statute – classification

Duration

• Perpetual statute – No duration for this statute unless repealed.
• Temporary statute – Only for a short period after this it will expire.

Nature of operation

• Prospective Effect – effect from the notified date;
• Retrospective effect – effect from the previous period;
• Directory - A directory statute is generally affirmative in its terms, recommends a certain act or omissions, but imposes no penalty on non-observance of its provisions;
• Mandatory - one which compels performance of certain acts and directs that a certain thing must be done in a certain manner or form.

Reference to objective

• Enabling statutes - It is a statute which makes it lawful to do something which would not otherwise be lawful;
• Disabling statutes - restrict or cut down rights existing at common law;
• Permissive statute - allows certain acts to be done without commanding that they be performed;
• Prohibitory statute - which forbids the doing of certain things;
• Codifying Statute - It presents and orderly and authoritative statement of the leading rules of law on a given subject, whether those rules are to be found in statute law or common law;
• Consolidating Statute - to present the whole body of statutory law on a subject in complete form repeating the former statute;
• Curative or validating Statute - to cure defects in the prior law and too validate legal proceedings, instruments or acts of public and private administrative powers which in the absence of such statute would be void for want of conformity with existing legal requirements but which would have been valid if the statute has so provided at the time of enacting;
• Repealing Statute - A statute which either expressly or by necessary implication revokes or terminates another statute is a repealing statute;
• Amending Statute - which makes and addition to or operates to change the original law so as to effect an improvement or more effectively carry out the purpose for which the original law was passed.

Different aids of interpretation

• In the process of interpretation, several aids are used. They may be statutory or non statutory.
• Statutory aids may be illustrated by the General Clauses Act, 1897 and by specific definitions contained in individuals Acts whereas non-statutory aids is illustrated by common law rules of interpretation (including certain presumptions relating to interpretation) and also by case-laws relating to the interpretation of statutes.

Internal aid – which are available in the statute itself-

• Title;
• Preamble;
• Headings;
• Marginal notes;
• Illustrations,
• Punctuations,
• Proviso;
• Schedule;
• Explanation;
• Definition;
• Transitional provisions;

External aid

• Parliamentary material;
• Speech;
• Historical background;
• Report of a committee or commission;
• Official statement;
• Judicial judgments;
• Dictionary meaning;
• Foreign decisions.

Rules of interpretation

• The Court is not expected to interpret arbitrarily and therefore there have been certain principles which have evolved out of the continuous exercise by the Courts.
• These principles are sometimes called ‘rules of interpretation’.

Rules of literal interpretation

• To construe the provisions literally and grammatically giving the words their ordinary and natural meaning;
• Also known as plain meaning rule;
• There should be no additions or substitution of words in the construction of statutes and its interpretation;
• Only one meaning should be derived from the statute.

Literal meaning is subject to the following conditions-

• Statute may itself provide for a special meaning for a term, which is usually to be found in the interpretation section.
• Technical words are given ordinary technical meaning if the statute has not specified any other.
• Words will not be inserted by implication.
• Words may undergo shifting in the course of time.
• It should be remembered that the words acquire significance from their context.

Golden Rule of interpretation

• It is a form of statutory interpretation that allows a judge to depart from a word’s normal meaning in order to avoid an absurd result.
• It is a compromise between the rule of interpretation and the rule of mischief.  To be used in two ways-

• It is applied most frequently in a narrow sense where there is some ambiguity or absurdity in the words themselves.
• It is used in a wider sense to avoid a result that is obnoxious to the principles of public policy.

Mischief Rules

• A rule of statutory interpretation that attempts to determine the legislator’s intention – to determine the mischief and defect – to give ruling to implement the effective remedy.
• In Heydon’s case – the following four points are taken into consideration while interpreting a statute-

• What was the common law before the making of the Act?
• What was the ‘mischief and defect’ for which the common law did not provide?
• What remedy the parliament hath resolved and appointed to cure the disease of the commonwealth?
• What is the true reason of the remedy?

Rule of reasonable construction

• This rule stresses upon the intention of the legislature to bring up the statute and sensible and not the prima facie meaning of the statute.
• This helps to clear the error caused due to the faulty draftsmanship.

Rule of Harmonious construction

• When there is a conflict between two or more statutes or two or more parts of a statute then this rule is to be adopted.
•  If it is not possible to harmonize the two statutes, then the court is to decide the same and it shall prevail.  There should be consistency.

Important aspects of this rule

• The court must construe the contradictory provisions so as to harmonize them.
• The provision of one section cannot be used to defeat the provisions in another unless the Court, despite all its efforts, is unable to find a way to reconcile their differences.
• When it is impossible to reconcile the differences in contradictory provisions completely, the court must interpret them in such a way so as that effect is given to both the provisions as much as possible.
• It is not a harmonious construction if the interpretation reduces one provisions to be useless and not to destroy it or render it to loose.

Rule of beneficial construction

• Beneficial construction is a tendency and not a rule. 
• This principle is based on human tendency to be fair, accommodating and just.
•   In one case the Tribunal awarded more number of paid leaves to the workers than stated in section 79(1) of the Factories Act.  This has been challenged.  The Supreme Court held that the enactment being welfare legislation for the workers had to be beneficially constructed in favor of the workers.

Rule of exceptional construction

• It stands for the elimination of statutes and words in a statute which defeats the real objective of the statute or makes no sense.  ‘and’ ‘or’, ‘may’, ‘shall’, ‘must’.

Rule of ‘ejusdem generis’ -  of the same kind and nature

• This rule provides that where words of specific meaning are followed by general words, the general words will be construed as being limited to persons or things of the same general kind or class as those enumerated by specific words
• This rule applies when-

• The statute contains an enumeration of specific words.
• The subject of enumeration constitute a class of category;
• That class or category is not exhausted  by the enumeration;
• The general items follows the enumeration;
• There is no indication of a different legislative intent.

• The Kerala High Court said in construing the words ‘body of individuals’  occurring in section 2(31) of the Income Tax Act, 1961 alongside the words ‘association of persons’, the words ‘body of individuals’ have to be understood in the same back ground, context and meaning given to the words ‘association of persons’.

Noscitur a sociis – it is known from the associates

• The question meaning of a word or doubtful words can be derived from its association with the other words within the context of the phrase. 
• The words in a list within a statute have meanings that are related to each other. 
• In ‘Foster v. Diphways Casson’ – (1887) 18 QBD428, the case involved a state which stated that explosives taken into a mine must be in a ‘case or canister’.  The defendant used a cloth bag.    The Court had to consider whether the cloth bag was within the definition.  The Court held that the cloth bag would not come under the definition because the intention in using ‘case or canister’ was referring to something as same strength as a canister.

Expressio Unius Est Exclusio Alterius

• It means that ‘the expression mention of one thing excludes all others’.
•  It is called as the Negative Implication Rule.
•  This rule assumes that the legislature intentionally specified on set of criteria as opposed to the other. 
• This rule is indicated as ‘includes’ or ‘such as’.  
• The Courts have held that this maxim should be disregarded where an expended interpretation of a statute will lead to beneficial results.

Contemporanea Expositio est optima et fortissinia in lege

• It means contemporaneous exposition is the best and strongest in law. 
• The meaning publicly given contemporary or long professional usage is presumed to be true one, even where the language has etymologically or popularly a different meaning.

Presumptions

• A Statute does not have retrospective effect to a date earlier than it becomes law unless otherwise stipulated.
• A Statute does not alter the common law.  If it is capable of two interpretations – one involving alteration of the existing law and other is not, the later interpretation is to be preferred.
• If a person is deprived of his property for nationalization, he should be compensated.
• A person shall be given reasonable opportunity of being heard even if such provision is absent in law.
• A statute is not intended to deprive a person of his liberty.
• A statute cannot impose criminal liability without proof of guilty intention.  Now exemptions are there.  Strict liabilities are imposed – example dangerous driving.
• A statute does not repeal the other statute.