Law/Sem-V/Interpretation of Statute

State the nature of statues and their classification. (2008)

Statute:A statute is a written law passed by a legislature on the state or federal level. Statutes set forth general propositions of law that courts apply to specific situations. A statute may forbid a certain act, direct a certain act, make a declaration, or set forth governmental mechanism to aid society. A statute begins as a bill proposed or sponsored by a legislator. If the bill survives the legislative committee process and is approved by both the houses of the legislature, the bill becomes law when it is signed by the executive officer (the President on the federal level or the Governor on the state level). When a bill becomes law, the various provisions in the bill are called statutes. The term statute signifies the elevation of a bill from legislative proposal of law. State and federal statutes are compiled in statutory codes that group the statutes by subject. These codes are published in book form and available at law libraries. In the case, CST Vs Mangal Sen Shamlal, AIR 1975(4) SCC 35, the court observed that a statute is supposed to be an authentic repository of the legislative will and the function of a court is to interpret in according to the intent of those that made it. The legislature as the representative of the people of a nation or the people of the state expresses its will and such expression of the will in accordance with constitution provision is a statute. According to Blacks Law Dictionary, the word Statute denotes an act of legislature declaring, commanding or prohibiting something i.e., the written will of legislature. Solemnly expressed according to the forms necessary to constitute it, the law of the state, may be declaratory or mandatory in nature. A statute has been made taking into consideration of matters like promotion of public justice, social gain, public policy, humanist consideration and the legislature tries its best to avoid any length of litigation regarding its intention.

Classification of Statutes
A statute may generally be classified with reference to its duration, method, object, and extent of application. A. Classification with reference to duration 1. Temporary statute 2. Permanent statute 1. Temporary statute - A temporary statute is one where its period of operation or validity has been fixed by the statute itself. Such an Act continues in force, unless repealed earlier, until the time so fixed. After the expiry of the Act, if the legislature wishes to continue it, a new enactment is required. The Finance Act is a temporary Act and is required to be passed every year.

B.K.Nishad

Page

Law/Sem-V/Interpretation of Statute

2. Permanent statute - A permanent statute is one where no such period has been mentioned but this does not make the statute unchangeable; such a statute may be amended or replaced by another Act. B. Classification with reference to method 1. Mandatory or Imperative or Obligatory Statute 2. Directory or Permissive Statute 1. Mandatory or imperative or Obligatory statute - A mandatory statute is one which compels performance of certain things or compels that a certain thing must be done in a certain manner or form. A mandatory provision has to be strictly observed 2. Directory or permissive statute - A directory statute merely directs or permits a thing to be done without compelling its performance. Substantial compliance of a directory provision is enough. C. Classification with reference to object - A statute may be classified with reference to its object as: 1. Codifying statute. 7. Penal statute. 2. Consolidating statute. 8. Taxing statute. 3. Declaratory statute. 9. Explanatory statute. 4. Remedial statute. 10. Amending statute. 5. Enabling statute. 11. Repealing statute. 6. Disabling statute. 12. Curative or validating statute. 1. Codifying statute - A codifying statute is one which codifies the law, or in other words, which purports (signifies; intent; aims) to state exhaustively the whole of the law upon a specific subject. The code contains the pre-existing provisions in different statutes on the subject as well as the common law on it. For example; The Bills of Exchange Act, 1882 in England is an Act to codify the law relating to Bills of Exchange, Cheques and Promissory Notes. The Hindu Succession Act, 1956 is a codifying statute with respect to intestate succession among Hindus. The purpose of a codifying statute is to present an 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. Page B.K.Nishad

Law/Sem-V/Interpretation of Statute
2. Consolidating statute - A consolidating statute is one which consolidates (combines) the law on a particular subject at one place. It collects all statutory enactments on a specific subject and gives them the shape of one statute with minor amendments, if necessary. For example; In England, the Law of Property Act, 1925 which consolidated the Acts of 1922 and 1924 (Act No. 2 of 1974) is a consolidating Act. In Australia, the New South Wales Justices Act, 1902 is a consolidating Act. In India, the Code of Criminal Procedure, 1974 is a consolidating statute relating to criminal procedure. The purpose of a consolidating Act is to present the whole body of statutory law on a subject in a complete form repealing the earlier Acts, However, a consolidating Act may not be a mere compilation of earlier statutes. 3. Declaratory statute - A declaratory statute is a statute to remove doubts either in the common law or in the statutory law. Passing of a declaratory statute becomes desirable when certain expressions in common law or statutes are being misunderstood. This may happen, for example;-, where the courts have been interpreting a particular expression as connoting (signifying) a specific meaning which the legislature feels is a wrong notion (concept; idea) of the expression. In such a case, the legislature may pass a declaratory statute declaring the correct meaning of that expression thereby setting at rest the controversy about the correct meaning of the expression. Mere use of the expression it is hereby declared does not necessarily make the statute a declaratory statute. Generally, a declaratory statute contains a preamble and also the word declared as well as the word enacted. The main object of such an Act is to remove doubts as to the meaning of the existing law, or to rectify an interpretation which the legislature thinks is wrong. Such a statute does not create substantive (genuine; real) rights; it simply declares the law as it is and as it had been at the time when the Act came into force. A declaratory Act has retrospective operation but already decided matters under the Act cannot be reopened. If, however, during the pendency of an appeal, a declaratory Act is passed, the appeal will be decided on the basis of such Act. For example; In England, the, Territorial Waters Jurisdiction Act, 1878 and the Freshwater Fisheries Act, 1886 are illustrations of declaratory statutes. In India, the Income Tax (Amendment) Act, 1985 which added explanation 2 to Section 40 of the Income Tax Act, 1961 and the Finance Act, 1987 amending the definition of Owner of house property in Section 27 are declaratory Acts.

B.K.Nishad

Page

Law/Sem-V/Interpretation of Statute
4. Remedial statute - A remedial statute is one whereby a new favour or a new remedy is conferred. The main object of passing such a statute is to make improvements in the enforcement of one's rights or for redress of wrongs and remove defects or mistakes in the former law. Of late, another synonymous expression, viz., socio-economic legislation, is being preferred by many. Some illustrations of remedial statutes are the Maternity Benefits Act, 1961 and the Workmen's compensation Act, 1923. In many remedial Acts the words for remedy whereof have been used immediately before the language of the enactment. Some people including Blackstone hold the view that remedial statutes could be enlarging as well as restraining. The Acts could be enlarging when narrow common law was widened or restraining when existing common law right was cut down. It is probably true that all legislations in a welfare State is enacted with the object of promoting general welfare, but certain types of enactments are more responsive to some urgent social demands and also have more immediate and visible impact on social vices by operating more directly to achieve social reforms. A remedial statute receives liberal construction and doubt is resolved in favour of the persons for whose benefit the statute is enacted. 5. Enabling statute - An enabling statute is one which enlarges the common law where it is narrow. It makes doing of something lawful which would not be otherwise lawful. By an enabling Act the legislature enables something to be done. It empowers at the same time, by necessary implication (suggestion), to do the indispensable (essential; requisite; obligatory) things for carrying out the object of the legislation. Acts authorising compulsory acquisition of land for public benefit of for legalising public or private nuisance are example;-s of enabling statutes. The conditions which have been put by an enabling Act for the public good must be complied with as they are indispensable (essential; requisite; obligatory). Such a statute grants power to make rules etc. to carry out the purposes of the Act and these rules may provide for a number of enumerated matters in particular and without prejudice (bias) to the generality of the foregoing provision. Sections 49-A (1) and 49-A (2) of the Advocates Act, 1961 as amended by Act 21 of 1964 is an illustration of this kind. 6. Disabling statute - A disabling statute is one which restricts or cuts down a right conferred by the common law. An Act restraining a common law right is a disabling Act. 7. Penal statute - A penal statute is one which punishes certain acts or wrongs. Such a statute may be in the form of a comprehensive criminal code or a large number of sections providing punishments for different wrongs.

B.K.Nishad

Page

Law/Sem-V/Interpretation of Statute
Some example;-s of such statutes are the Indian Penal Code, Arms Act, 1959, Prevention of Food Adulteration Act, 1954 etc. The penalty for the disobedience of the law may be in the form of fine, forfeiture of property, imprisonment and even death. Where obedience to law is enforced not by an individual action but by a command of the law in the form of punishment, the statute is penal. A penalty can be imposed only when the letter of the law says so unambiguously (clear or definite in meaning) and any doubt has to be resolved in favour of the alleged offender. 8. Taxing statute - A taxing statute is one which imposes taxes on income or certain other kinds of transaction. It may be in the form of income tax, wealth tax, sales tax, gifts tax etc. The object of such a statute is to collect revenue of the government. Tax is levied for public purpose. It is a source of revenue generation for the State. The money so collected is utilised for welfare activities of the people. Tax can be levied only when a statute unequivocally (unmistakably; clearly) so provides by using express language to that effect and any doubt is resolved in favour of the assesses. 9. Explanatory statute - An explanatory statute is one which explains a law. Such a statute is generally enacted with a view to supply an apparent omission or to clarify ambiguity (having an obscure or double meaning) as to the meaning of an expression used in a previous statute. An Act enacted for the express purpose of explaining or clearing up doubts as to the meaning of a previous Act is an Act of explanation or an explanatory statute. For example; The Royal Mines Act, 1688 in Britain was passed to encourage mining certain base metals while the Royal Mines Act, 1963 was enacted for better explanation of the earlier Act. The latter is an example of explanatory statute. 10. Amending statute - An amending statute is one which makes an addition to or operates to change the original law so as to effect an improvement therein or to more effectively carry out the purposes for which the original law was passed. An amending statute cannot be called a repealing statute. It is part of the law it amends. For example; Direct Taxes Amendment Act, 1974, Direct Tax Amendment Act, 1986, Direct Tax Laws Amendment Act, 1987, Taxation Laws Amendment Act, 1962, Taxation Laws Amendment Act, 1970, Taxation Laws Amendment Act, 1984, Criminal Law (Amendment) Act, 1983 and Land Acquisition (Amendment) Act, 1984. B.K.Nishad

Page

Law/Sem-V/Interpretation of Statute

11. Repealing statute - A repealing statute is one which repeals an earlier statute. This revocation or termination may be by express or explicit language of the statute or it may be by necessary implication also. For example; The Hyderabad District Municipalities Act, 1956 was a repealing Act which repealed the Hyderabad Municipal and Town Committees Act, 1951. The Code of Criminal Procedure, 1973 (Act No. 2 of 1974) repealed and reenacted the Code of Criminal Procedure, 1898. 12. Curative or validating statute - A curative or validating statute is one which is passed to cure defects in prior law, or to validate legal proceedings, instruments or acts of public and private administrative authorities which in the absence of such an Act would be void for want of conformity with existing legal requirements, but which would have been valid if the statute had so provided at the time of enacting. The purpose of a validating statute is to remove the cases of ineffectiveness or invalidity of actions or proceedings which are validated by a legislative measure. A validating legislation normally contains the expression notwithstanding any judgment, decree or order of any court. The purpose of such an expression is to validate some actions which would otherwise be unlawful or which may have been declared invalid by a court. A natural consequence of the passing of a curative Act may be the validation of such actions, which would otherwise be invalid, up to the extent of the validation by the legislature. The result of the validation is that notifications or other steps taken which may otherwise have been invalid become valid. D. Classification with reference to the extent of application 1. Public Statute 2. Private Statute 1. Public statute - A public statute is one which relates to a matter of public policy. Such a statute may be general, local or personal in nature. 2. Private statute - A private statute concerns with matters which are individual in nature or is related to a body which has no public consequence.

B.K.Nishad

Page