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The General Clauses Act, 1897 Question bank
- 27/10/2025
- Posted by: ecpgurgaon@gmail.com
- Category: CA UPDATES
The General Clauses Act, 1897
Question 1.
What Is the Object of the General Clauses Act, 1897?
Answer:
The General Clauses Act, 1897 contains ‘definitions’ of some words and also some general principles of interpretation. This is an Act intends to provide general definitions which shall be applicable to all Central Acts and Regulations where there is no definition in those Acts or regulations that emerge with the provisions of the Central Ads or regulations unless there is anything repugnant in the subject or context.
The objects of the Act are:
- To shorten the language of Central Acts;
- To provide, as far as possible, for uniformity of expression in Central Acts, by giving definitions of a series of terms in common use.
Question 2.
What is the purpose of the General Clauses Descriptive Act, 1897?
Answer:
The purpose of the General Clauses Act is to place in one single statute different provisions as regards interpretation of words and logal principles which w .ild otherwise have to be specified separately in many different Acts and Regulations.
So, whatever Genera Clauses Act says whether as regards to the meaning of words or as regards legal principles, has to be read in every statute to which it applies.
The General Clauses Act, thus, makes provisions as to the construction of General Acts and other laws of all-India application. Its importance, therefore, in point of the number of enactments to which it applies, is obvious.
Question 3.
The act done negligently shall be deemed to be done in good faith. Comment with the help of the provisions of the General Clauses Act, 1897. (2021 – Jan 3 marks)
Question 4.
What do you understand by the term ‘Good Faith’? Explain it as per the provisions of the General Clauses Act. 1897. Mr. X purchased a watch from Mr. Y carelessly without proper inquiry. Whether the purchase made could said to be made in good faith. (Nov 2019, 4 marks)
Answer:
As per Sec. 3 (22) of the General Clauses Act, 1897, a thing shall be deemed to be done in, good faith” where it is in fact done honestly, whether it is done negligently or not. The term “good faith” is not defined in the Indian Contract Act, 1872 and the definition given here is in the General Clauses Act. 1897 does not expressly apply to the term 3fl the Indian Contract Act, The definition of good faith as is generally understood in the civil law and which may taken as a practical guide in understanding the expression in the Contract Act is that nothing is said to be done in good faith which is done without due care and attention as s expected with a man of ordinary prudence. Here, purchase of a watch by Mr. X from Mr. Y carelessly without proper inquiry cannot said to have been made in good faith.
Question 5.
Define the term “Affidavit” under the General Clauses Act, 1897. (Nov 2019, 3 marks)
Answer:
As per Section 3(3) of the General Clauses Act, 1897. AffidavIt shall include affirmation and declaration in the case of persons by law allowed to affirm or declare instead of swearing.
There are two important points derived from the above definition:
1. Affirmation and declaration.
2. In case of persons allowed affirming or declaring instead of swearing.
The above definition is inclusive in nature. It states that Affidavit shall include affirmation aid declarations. This definition does not define affidavit. However, we can understand this term in general parlance Affidavit is a written statement confirmed by oath or affirmation for use as evidence in Court or before any authority.
Question 6.
Define the following terms with reference to the General Clauses Act, 1897:
(i) Affidavit
(ii) Good Faith (Nov 2020, 2 + 2 = 4 marks)
Question 7.
Income Tax Act, 1961 provides that the gratuity paki by the government to its employees is fully exempt from tax. You are required to explain the scope of the term ‘government’ and clarify whether the exemption from gratuity income will be available to the State Government Employees? Give your answer in accordance with the provisions of the General Clauses Act, 1897. (Jan 2021, 2 marks)
Question 8.
X owned a land with fifty tamarind trees. He sold his land and the timber (obtained after cutting the fifty trees) to Y. X wants to know whether the sale of timber tantamounts to sale of immovable property. Advise him with reference to provisions of “General Clauses Act. 1897. (May 2018, 4 marks)
Answer:
Provision:
According to Section 3(26) of the General Clauses Act, 1897, ‘Immovable Property’ shall include:
- Land,
- Benefits to arise out of land, and
- Things attached to the earth or permanently fastened to anything attached to the earth.
Present Case:
X sold his land and timber which was obtained after cutting fifty tamarind trees planted on his land. As per Sec. 2(26), trees are immovable property because trees are benefits arising out of the land and attached to the earth. However, timber is not Immovable property as the same are not permanently attached to the earth.
Case Law:
In Jagdish Vs. Mangal Pandey (A.I.R 1986 All. 182), the issue was whether the trees were movable or immovable properly. The Court contended that apart from size of the tree the relevant consideration would be the intention to cut the tree or let it remain attached to the earth. In the former case it will be termed as standing timber while in the latter it must remain immovable property.
Question 9.
Mrs. K went to a Jewellary shop to purchase diamond omarrients. The owners of jewellary shop are notorious and indulging in smuggling activities. Mrs. K purchased diamond ornaments honestly without making proper enquiries. Was the purchase made in Good faith as per the provisions of the General Clauses Act, 1897 so as to convey good title? (Nov 2020, 2 marks)
Question 10.
Discuss Computation of time under the Descriptive General Clauses Act, 1897.
Answer:
Computation of time [Sec. 1o]
Where, by any (Central Act) or regulation made after the commencement of this Act, any act or proceeding is directed to allowed to be done or taken in any Court or office on a certain day or within a prescribed period, then, if the Court or office is closed on that day or that day or the last day of the prescribed period, the act or proceeding shall be considered as done or taken in due time it it is done or taken on the next day afterwards on which the Court or office is open.
In K. Soosalrathnam y. Div. Engineer, N.H.C. Tirunelveli, it was held by Madras High Court that since the last date of the prescribed period was subsequent to the date of notification, declared to be a holiday on the basis of the principles laid down in this section the last date of prescribed period for obtaining the tender schedules was extended to th next working day.
Question 11.
Explain briefly any tour effects by repeal of an existing Act by central legislation enumerated in Section – 6 of The General Clauses Act. 1897. (May 2018, 4 marks)
Answer:
“Effect of Repeal” [Section 6]: Where any Central legislation or any regulation made after the commencement of this Act repeals any Act made or yet to be made, unless another purpose exists, the repeal shall not: Revive anything not enforced or prevailed during the period at which repeal is effected or; Affect the prior management of any legislation that is repealed or anything performed or undergone or: Affect any claim, privilege, responsibility or debt obtained, ensued or sustained under any legislation so repealed or; Affect any punishment, forfeiture or penalty sustained with regard to any offense committed as opposed to any legislation or Affect any inquiry, litigation or remedy with regard to such claim, privilege, debt or responsibility or any inquiry, litigation or remedy may be initiated, continued or insisted.
Question 12.
‘Repeal’ of provision is different from ‘deletion’ of provision. Explain. (Nov 2018, 2 marks)
Answer:
‘Repeal’ ordinarily brings about complete obliteration of the provisions as if it never existed, thereby affecting all incoherent rights and all causes of action related to the ‘repealed’ provision while ‘deletion’ ordinarily takes effect from the date of legislation affecting the said deletion, never to effect total effecting or wiping out of the provision as if it never existed. So as per above Repeal’ of provision is different from ‘deletion’ of provision. [Navrangpura Gam Dhrrnada Milkat Trust V. Rmtuji Ramji, AIR 1994 Guj 75].
Question 13.
PK and VK had a long dispute regarding the ownership of a land for which a legal suit was pending in the court. The court fixed the date of hearing on 29.04.201.8, which was announced to be a holiday subsequently by the Government. What will be the computation of time of the hearing in this case under the General Clauses Act, 1897? (Jan 2021, 2 marks)
Question 14.
(i) The Companies Act, 2013 provides that the amount of dividend remained unpaid/unclaimed on expiry of 30 days from the date of declaration of dividend shall be transferred to unpaid dividend account within 7 days from the date of expiry of such period of 30 days. If the expiry cate of such 30 days is 30.10.2018, decide the last date on or before which the unpaid/unclaimed dividend amount shall be required to be transferred to a separate bank account in the light of the relevant provisions of the General Clauses Act, 1897? (May 2019, 2 marks)
(ii) Referring to the provisions of the General Clauses Act, 1897, find out the day/date on which the following Act/Regulation comes into force. Give reasons also,
1. An Act of Parliament which has not specifically mentioned a particular date.
2. The Securities and Exchange Board of India (Issue of Capita and Disclosure Requirements) (Fifth Amendment) Regulations, 2015 was issued by SEBI vide Notification dated 14th August 2015 with effect from 1 January 2016. (2 marks)
Answer:
(i) Sec. 90f the General Clauses Act, 1897 provides that, for computation of time, in any legislation or regulation, it shall be sufficient, for the pur Doso of excluding the first in a series of days or any other period of time to use the word “from” and for the purpose of including the last in a series of days or any other period of Ume, to use the word “to” The Companies Act, 2013 provides that the amount of dividend remaining unpaid or unclaimed on expiry of 30 days from the date ot declaration of dividend shall be transferred to unpaid dividend account within 7 days from the date of expfry of such period of 30 days.
The expiry date of such 30 days is 30/10/2018. so here date of declaration of dividend is excluded and the date on which such 30 days expires i.e. 30/10/2018 will be included. So, on or before 30/10/2018, the unpaid/unclaimed dividend amount shall be required to be transferred to a separate bank account in light of the relevant provisions of the General Clauses Act, 1897.
(ii)
1. As per Sec. 5 of the General Clauses Act, 1897 where any Act of parliament has not specifically mentioned a particular date to come into force, it shall be implemented on the day on which it receives the consent of the Governor General in case of a Central Acts made before the commencement of the Indian constitution and for, of the President in case of an Act of Parliament.
2. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Fifth Amendment) Regulations, 2015 as issued by SEBI vide Notification dated 14? August 2015 with effect from 1st January 2016, this shall come into enforcement on January 2016 rather than the date of its notification in the gazette.
In the case of State of Utta. Pradesh V. Mahesh Narain, AIR 2013 SC 1778. Supreme Court held that Effective date of Rules would be when the Rules are published vide Gazette notification and not from date when the Rules were under preparation.
Question 15.
There are two ways to reach City A from City B. The distance between the two cities by roadways is 100 kms. and by waterways 80 kms. How is the distance measured for the purpose of any Central Act under the provisions of the General Clauses Act, 1897? (Nov 2020, 2 marks)
Question 16.
Discuss Substitution of functionaries under the General Clauses Act, 1897.
Answer:
Substitution of functionaries (Sec. 17):
In any (Central Act) or Regulation made after the commencement of this Act, it shall be sufficient, for the purpose of indicating the application of a law to every person or number of persons for the time being executing the function of an office, to mention the official title of the officer at present executing the functions, or that of the officer oy whom the functions are commonly executed.
This section applies also to all (Central Acts) made after the third day of January 1868, and to all Regulations made on or after the fourteenth day of January 1887.
Question 17.
What s the provision related to making of rules or bye-laws and issuing of orders between passing and commencement of enactment?
Answer:
According to Sec. 22 of the Act, where, by any Central Act or Regulation which is not to come into force immediately, on the passing thereof, a power is conferred to make rules or bye-laws, or to issue orders with respect to the application of the Act or Regulation or with respect to the establishment of any Court or the appointment of any Judge or Officer thereunder, or with respect to the person by whom, or the time when, or the place where, or the manner in which, or the fees for which, anything is to be done under the Act or Regulation, then that power may be exercised at any time after passing of the Act or Regulation; but rules, bye-laws or orders so made or issued shall not take effect till the commencement of the Act or Regulation.
Question 18.
What is the rule regarding continuation of orders issued under enactments which are repealed and re-enacted?
Answer:
Where any Central Act or Regulation, is, after, the commencement of this Act, repealed and re-enacted with or without modification, then unless it is otherwise expressly provided any appointment notification, order, scheme, rule, form or bye-law, made or issued under the repealed Act, continue in force, and be deemed to have been made or issued Under the notification, order, scheme, rule, form or bye-law, made or issued under the provisions so re-enacted and when any Central Act or Regulation.
which, by a notification under Section 5 or 5A of the Scheduled District Act, 1874, or any like law, has been extended to any local area, has, by a subsequent notification, been withdrawn from the re-extended to such area or any part thereof, the provisions of such Act or Regulation shall be deemed to have been repealed and re-enacted in such area or part within the meaning of this section. [Sec. 24]
Question 19.
Explain various provisions applicable to rules or bye-laws being made after previous publications as enumerated in Section 23 of the General Clauses Act. 1897. (Nov 2018, 4 marks)
Answer:
Provisions applicable to making of rules or bye-laws after previous publication [Section 23] , Where, by any Central Act, or Regulation, a power to make rules or bye-laws is expressed to be given subject to the condition of the rules or bye-laws being made aller previous publication, then the following provisions shall apply, namely:
| 1. Publication of proposed drafts rules bye-laws | The authority having power to make the rules or bye-laws shall, before making them, publish a draft of the proposed rules or bye-laws for the information of persons likely to be affected thereby; |
| 2. Publication in proper manner | The publication shall be made in such manner as that authority deems to be sufficient or, if the condition with respect to previous publication so requires. in such manner as the Government concerned prescribes; |
| 3. Notice to be annexed with draft | There shall be published with the draft a notice specifying a date on or alter which the draft will be taken into consideration; |
| 4. Consideration on suggestions or objections | The authority having power to make the rules or bye-laws, and, where the rules or bye-laws are to be made with the sanction, approval or concurrence of another authority, that authority also shall consider any objection or suggestion which may be received by the authority having power to make the rules or bye-laws from any person with respect to the draft before the date so specified; |
| 5. Notified in official gazette | The publication in the Official Gazette of a rule or bye-law purporting to have been made in exercise of a power to make rules or bye-laws after previous publication shall be conclusive proof that the rule or bye-laws has been duly made. |
Question 20.
What is the meaning of service by post as per provisions of The General Clauses Act, 1897? (May 2018, 2 marks)
Answer:
“Meaning of Service by post” [Section 27 of the General Clauses Act, 18971: Where any legislation or regulation requires any document to be served by post, then unless a different intention appears, the service shall be deemed to be effected by:
- properly addressing
- pre-paying, and
- posting by registered post
A letter containing the document to have been effected at the time at which the letter would be delivered in the ordinary course of post.
Question 21.
Mr. Ram, an advocate has fraudulently deceived his client Mr. Shyam, who was taking his expert advice on taxation matters. Now. Mr. Ram is liable to a fine for acting fraudulently both under the Advocates Act. 1961 as well as the Income Tax Act. 1961. State the provision as to whether his offence is punishable under the both the Acts, as per the General Clauses Act, 1897.
Answer:
“Provision as to offense punishable under two or more enactments” [Section 26]: Where an act or omission constitutes an offense under two or more enactments, then the offender shall be liable to be prosecuted and punished under either or any of those enactments, but shall not be punished twice for the same offense. Thus, Mr. Ram shall be liable to be punished under the Advocates Act. 1961 or the Income Tax Act, 1961. but shall not be punished twice for the same offense.