Interpretation of

Statutes

Module I

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By reference to their legal sources, there are four kinds of law
• Enacted law having its source in Legislation

• Case law having its source in Precedent

• Customary Law having its source in Custom

• Conventional law having its source in Agreement.

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Legislation
The term ‘legislation’ is derived from Latin words, Legis meaning law and Latum which means to
make or set’. Thus, the word legislation means making of law.
Legislation is one of the most effective sources of law.
Legislation involves two features:
It involves laying down of legal rules by the legislature which the state recognizes as law.
It has the force and authority of state.
It is for this reason that Dias has rightly said that it is the deliberate law-making by an authoritative
power i.e. the State. Undoubtedly, deliberate law-making is indispensable for the efficient
regulation of modern state.
According to Salmond ‘Legislation is that source of law which consists in the declaration of legal
rules by a competent authority’.
According to Bentham and John Stuart Mill, legislation includes both. The process of law-making
and the law evolved as a result of this process.
Gray pointed out that legislation includes ‘formal utterances of the legislative organs of the
society.’
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Interpretation of Statutes
• Legislation is inseparable from a process of interpretation by the
courts.
• Enacted law is the embodiment of authoritative principles
• The words in which the law is expressed (litera scripta)forms a part
of the law
• Both the letter and spirit of the enacted law carries legal authority.
• According to Salmond ‘Interpretation is that process by which the
court ascertains the meaning which the legislature intended
through the medium ;.of the authoritative form in which it is
expressed

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Statute
• A statute is the formal expression in writing of the will of the
legislature.
• Halsbury’s Laws of England – “It is the declaration of the law as it
exists or as it shall be from the time at which such statute is to take
effect.”
• Eg. Hindu Marriage Act, 1955; Citizenship Amendment Act, 2019
• “A statute is the highest constitutional formulation of law, the means
by which the supreme legislature, after the fullest deliberation,
expresses its final will.”
- C.K. Allen, Law in the Making (1951) p 489
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Difference – Law made by - Legislature &
Judiciary

• Legislator can lay down rules purely for the future, with or without
reference to any actual dispute.

• Whereas the court create law only in application to the cases before
them.

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 Procedure of Legislation – Bill - Types
Bill

Constitution
Ordinary Bill Money Bill Financial Bill
Amendment Bill

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Procedure of Legislation – Bill - Types
• Ordinary Bill : Article-107 and 108
– Matters other than financial matters
• Money Bill : 110
– Financial matters like taxation, expenditure
• Financial Bill : 117
– concerned with financial matters other than money bill
• Constitution Amendment Bill : 368
– For the purpose of amendment of Constitution

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Procedure of Legislation
• A bill can be introduced in either Lok Sabha or Rajya Sabha
• Has to be passed by both the houses – Lok Sabha & Rajya Sabha
• On the basis of introduction, bill can be Public bill or Private bill
• Public Bill/ Government Bill
• Introduced by a Minister
• 7 days prior notice
• Drafted by Govt. department in consultation with Law Department
• Private Bill
• Introduced by anyone other than a minister
• One month prior notice
• Drafted by the concerned member
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Procedure – Ordinary Bill
First Reading

• Member asks for leave of the house to introduce the bill.

• If leave is granted, he introduces the title and objectives.
• The bill is published in the Gazette
• If, it is published before its introduction, leave of the house is not
needed.
• No debate or voting takes place.
• May be referred to standing committee.

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Procedure – Ordinary Bill
Second Reading

After a Bill has been introduced the Member in charge of the Bill may
make one of the following motions:
1. that it be taken into consideration
2. That it be referred to a Select Committee
3. That it be referred to a Joint Committee of the House with the
concurrence of the other House.
4. that it be circulated for the purpose of eliciting public opinion.

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Procedure – Ordinary Bill
Second Reading

• General & Detailed Scrutiny of the Bill

• General Discussion
• Details are not discussed
• Printed copies of bills are given to all members.
• The House can take the bill for immediate consideration or at a fixed date.
• It can be referred to select committee or a joint committee of both houses.

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Procedure – Ordinary Bill
Second Reading

• Committee Stage
• A Committee scrutinizes the bill and amends it, if needed.
• A detailed clause by clause review is done and submits a report to the house.
• Consideration Stage
• The house examines the bill in detail and each clause is voted upon.
• Amendment, if succeeded, is added to the bill.

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Procedure – Ordinary Bill
Third Reading

• The entire bill is discussed and voted

• No amendments are allowed at this stage
• If bill is passed by a simple majority, then it is authenticated by the
presiding officer & goes to the second house

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Procedure – Ordinary Bill
• In the second house the above stages are repeated
• The bill is voted upon
• It is either passed with or without amendments; or rejected; or no
action is taken.
• If the house rejects the amendments or the bill; or if no action is
taken for 6 months, then a deadlock is deemed to have taken place
and a joint sitting is called by the President.

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Procedure – Ordinary Bill
• Joint Sitting
• It is notified by the President, after which no house can proceed on the bill
• Speaker of Rajiya Sabha resides over the joint sitting
• No new amendments can be made except if amendments have caused
disagreement or amendments are necessary due to the delay in passing the
bill
• The bill needs to be passed with simple majority
• The President can- return it for reconsideration, or have to give assent

President assent = Act

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 Money
Bill

Financial
Bill

Financial Financial
Bill II Bill I

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Procedure – Money Bills
• Money bills:
• Can be introduced only in Lok Sabha and only after President’s
recommendation
• Can only be introduced by a Minister
• Speaker endorses it
• When it is passed by Lok Sabha, Rajiya Sabha can’t amend it but only makes
recommendation and then it goes to the President.

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Procedure – Money Bills
Bill is money bill if it deals with : Article-110
• Provisions of taxation
• Borrowing by government
• Appropriation of funds from the Consolidated Funds of India
• Payment or withdrawal from consolidated fund or contingency fund
• Declaration of amount charged on consolidated funds or increasing this
amount
• Audit of accounts of Union or States
• Receipt of money on account of consolidated funds

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Procedure – Money Bills
• It is not a money bill if it deals only with

• Provisions of taxation by local body at local levels

• Imposition of fines or penalties
• Demand for license fee or service fees
If any question arises whether a Bill is Money Bill or not, the decision of the
Speaker of the LS shall be final.
All Money Bills are Financial Bills but all Financial Bills are not Money Bills.

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Procedure – Financial Bills : Article 117
• Financial Bill I
• Can contain matters of money bill but also contain provisions of general
legislations
• Can be introduced only in Lok Sabha and after recommendation of President

• Financial Bill II
• Doesn’t include any matters of money bill but expenditure from the Consolidated
Fund of India. It can be passed by a house only if the President has directed it to
consider such bill
Financial Bills follows the same procedure an Ordinary Bill in all respects except
introduction

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Procedure of Amendment of Indian
Constitution (Art. 368)
• Can be introduced in any house of the parliament.
• Can be introduced both as a public bill or a private bill.
• Prior recommendation of President is NOT needed
• Constitution Amendment Bills are not treated as Money Bills or Financial
Bills even if they have some provisions related to them.
• A constitution amendment bill must pass in both the houses separately by
absolute + special majority {absolute → more than 50% of strength; special
→ 2/3 of present and voting}.
• If there is a disagreement between the two houses on a constitution
amendment bill, there is NO provision of joint sitting to resolve the
deadlock.
• If a bill seeks to amend the federal provisions of the Constitution, it must
also be ratified by the legislatures of half of the states by a simple majority
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Procedure of Amendment of Indian
Constitution
• Presidential Assent to Constitution Amendment Bills

Constitution Amendment Bills passed by Parliament by the prescribed special

majority and, where necessary, ratified by the requisite number of State
Legislatures are presented to the President under article 368 of the
Constitution under which the President is bound to give his assent to such Bills.

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Parts of a Statute

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 Parts of Statute

❖Title ❖Headings
❖Short Title ❖Sections
❖Long Title
❖Sub Sections
❖Preamble
❖Proviso
❖Extent/Application Section
❖Commencement Clause ❖Illustrations
❖Saving Clause ❖Explanations
❖Definitions/ Interpretation ❖Repealing Clause
Clause ❖Non Obstante Clause
❖Marginal notes ❖Schedules
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Short Title

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Long Title

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Long Title
• Transfer of Property Act, 1882
• "An Act to amend the law relating to transfer of property by act of
parties".
• The Tea Act, 1953
• "An Act to provide for the control by the Union of the tea industry,
including the control, in pursuance of the Inter-national Agreement
now in force, of the cultivation of tea in, and the export of tea from,
India and for that purpose to establish a Tea Board and levy a duty of
excise on tea produced in India".

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Preamble

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Extent, Commencement, Saving Clauses
• The first section in all Indian enactments usually states
• (a) the short title
• (b) the extent of operation of the enactment and
• (c) its commencement.

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Extent, Commencement, Saving Clauses

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Saving Clause

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Application Clause

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Interpretation/ Definition Clause

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Interpretation/ Definition Clause

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Interpretation/ Definition Clause

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Interpretation/ Definition Clause
• Inclusive & Exhaustive Definitions
• "vessel” includes boats, rafts and other floating
conveyances“ (Inclusive definition)
• "Cattle" means cows, bulls, buffaloes ,and calves" (an
exhaustive definition)

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Marginal Notes

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Headings, Section, Sub-section

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Proviso

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Non-Obstante Clause

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Illustration

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Explanation

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Repeal Clause

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Schedule

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