1

INTRODUCTION

The essence of law lies in the spirit, not its letter, for the letter is
significant only as being the external manifestation of the intention
that underlies it.

Salmond

A statute is a will of legislature conveyed in the form of text.

Interpretation or construction of a statute is an age-old process and as
old as language. Elaborate rules of interpretation were evolved even at
a very early stage of Hindu civilization and culture. The rules given by
Jaimini, the author of Mimamsat Sutras, originally meant for srutis
were employed for the interpretation of Smrities also. 1 It is well settled
principle of law that as the statute is an edict of the Legislature, the
conventional way of interpreting or construing a statute is to seek the
intention of legislature. The intention of legislature assimilates two
aspects; one aspect carries the concept of meaning, i.e., what the
word means and another aspect conveys the concept of purpose and
object or the reason or spirit pervading through the statute. The
process of construction, therefore, combines both the literal and
purposive approaches. However, necessity of interpretation would arise
only where the language of a statutory provision is ambiguous, not
clear or where two views are possible or where the provision gives a
different meaning defeating the object of the statute.2

The object of all interpretation of a written instrument is to discover the

intention of the author as expressed in the instrument. 3 There are
many so called rules of construction that courts have resorted to in
their interpretation of statutes but the paramount rule remains that
1 Law Commission of India, 60th Report, Chapter 2, para 2.2

2 Law Commission on India, 183rd Report, A continuum on the General Clauses

Act, 1897 with special reference to the admissibility and codification of external
aids to interpretation of statutes P.8
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every statute is to be expounded according to its manifest and

expressed intention.4 Interpretation of statute being an exercise in the
ascertainment of meaning, everything which is logically relevant
should be admissible.5 The most common rule of interpretation is that
every part of the statute must be understood in a harmonious manner
by reading and construing every part of it together. The maxim A
Verbis legis non est referendum means that you must not vary the
words of the statute while interpreting it. Interpretation of statute is the
process of ascertaining the true meaning of the words used in a
statute. It is therefore necessary to interpret the statute to find out the
real intention of the statute.6

RESEARCH METHODOLOGY:-

The research methodology is purely doctrinal in nature. Further, it is

basically descriptive, comparative and fundamental, qualitative and
appraisal oriented research (at place conceptual) which deploys
deductive logical reasoning for elaborating the reasons of the
exhaustive interpretation.

AIMS & OBJECTIVE:-

The main objective of this research paper is to do comparative study of

the internal & external aids to interpretation. Further it will deal with
the situation when there is a conflict between internal and external aid
which will prevail. I will try to come out with all the loopholes of internal
3 Halsuburys Laws Deeds and Other Instruments Vol 13 (2007 Reissue) Para
165

4 A-G for Canada v. Hallet & Carey Ltd. [1952] Ac 427

5 K.P. Varghese v Income Tax Officer Ernakulam, AIR 1981 SC 1922

6 Rajkumar S. Adukia, Interpretation of Statutes,Also See

http://www.caaa.in/Image/Interpretation%20of%20Statutes.pdf (last Accessed on 15th
March at 6.30 P.M)
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aids to interpretation and bring all check and balances of internal &
external aids to interpretation.

RESEARCH QUESTION:-

1. Why internal aids prevail over external aids of interpretation?

2. Why Preamble is an intrinsic aid in the interpretation of an
ambiguous Act?

SOURCES

Primary Sources: Judgements & Law Reports

Secondary Sources: Books & Articles

ANALYSIS BY DELHI HIGH COURT

Usually the interpretation has to be based on the section itself and

even the intention of legislature can be best found as recorded in
the section itself and only in case the language of section is not clear
or ambiguous such internal or external aids to interpretation of
statutes can be brought into.7

Therefore it is well settles that internal or external aids of interpretation

are only necessary when there is an ambiguity, however usually they
are not called for. The true end and design of interpretation is to gather
the intent of the legislature from the most probable signs. 8I f courts are
to allow a purposive interpretation; it follows that it may look for
authority outside the specific words of the legislation. Where the
authority is in the same statute, this is often referred to as a Intrinsic

7 Honeywell International (India) (P) Ltd. v. Deputy Commissioner of Income Tax,

[2008]26SOT503(Delhi)8.PUFENDORF,TR KENNETT, OF THE LAW OF NATURE AND
NATIONS (4TH ED. 1729),P.535
9.
0 P.M. BAKSHI, INTERPRETATION OF STATUTES (2010 REPRINT) P.192

8
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authority or Internal Aid. Everything else will be extrinsic or External

Aid.9 Therefore internal aids mean those materials which are available
in the statute itself, though they may not be part of enactment. These
internal aids include, long title, preamble, headings, marginal notes,
illustrations, punctuation, proviso, schedule, transitory provisions, etc.
When internal aids are not adequate, court has to take recourse to
External aids. External Aids may be parliamentary material, historical
background, reports of a committee or a commission, official
statement, dictionary meanings, foreign decisions, etc. 10

Even after the act is passed, the court has to interpret the act on the
basis of informed basis by applying external aids if the language is
ambiguous.11

It is a cardinal rule of interpretation that internal aids to construction

should be given preference while interpreting a statute however 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.12

VARIOUS CASE LAWS WITCH HELPS IN THE DEVELOPMENT OF

INTERNAL AIDS TO INTERPRETATION

1010. Kehar Singh v. State (Delhi Admin.) AIR 1988 SC 1883 11. Doypack Systems Pvt. Ltd.
V. Union of India, AIR 1988 SC 782.
12
. B. Prabhakar Rao and others v State of A.P. and others , AIR 1986 SC 120.

11

12
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Recently, again Supreme Court in Grasim Industries Ltd. V

13
Collector of Customs, Bombay, has followed the same principle
and observed:

Where the words are clear and there is no obscurity, and there is no
ambiguity and the intention of the legislature is clearly conveyed, there
is no scope for court to take upon itself the task of amending or
altering the statutory provisions.

Recently, in District Mining Officer and others v Tata Iron & Steel
Co. and another,14 Supreme Court has observed:

It is also a cardinal principle of construction that external aids are

brought in by widening the concept of context as including not only
other enacting provisions of the same statute, but its preamble, the
existing state of law, other statutes in pari materia and the mischief
which the statute was intended to remedy.

In Wilson v. Secretary of state for trade and Industry,15

The respondent appealed against a finding that the provision which

made a loan agreement completely invalid for lack of compliance with
the 1974 Act was itself invalid under the Human Rights Act since it
deprived the respondent of its property rights. It was also argued that it
was not possible to make a declaration of incompatibility in respect of
matters arising from events before the coming into force of the 1998
Act.

Held: Parliament cannot have intended that section 3(1) should have
the effect of altering the parties existing and obligations under the
Consumer Credit Act. In this transition type of case, section 3(1) is
13 (2002)4 SCC 297

14 (2001)7 SCC 358.

15 UKHL 40, [2003] 3 WLR 568,

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inapplicable to the interpretation of the Consumer Credit Act, and the

court had no jurisdiction to make a declaration of incompatibility. The
court is not required to evaluate the effect of primary legislation in
terms of convention rights and, where appropriate, to make a formal
declaration of incompatibility. The court was entitled for the purpose of
interpretation to look at ministerial statements but not generally at
parliamentary debates to establish the purpose of the Act under
consideration, and in doing so it was neither encroaching upon
parliamentary privilege nor questioning the proceeding of parliament.

HEADING

Heading are of two kinds one prefixed to the section and other
prefixes to a group or set of section. Heading is to be regarded as
giving the key to the interpretation and the heading may be treated as
preambles to the provisions following them. Headings or titles which
are prefixed to section can be referred to, in construing an act of the
legislature.16 A heading is usually regarded as giving the key tom the
interpretation of the clauses arranged under it, unless the wording is
inconsistent with such interpretation.17And if there are any doubts in
the interpretation of the words in a section, the headings certainly help
the court to resolve that doubt.

In Krishnaih V. State of A.P.18

PIL was filed by one Sri R. Krishnaiah, President of A.P Backward

Classes Welfare Association writ of mandamus declaring the action of
the Government of Andhra Pradesh in issuing Ordinance which found to
be illegal, unconstitutional and without any legal or constitutional

16 Bhinka v Charan Singh, AIR 1959 SC 960

17 Qualter Hall & Co. Ltd v. Board of Trade, (1962) Ch 273

18 {A.P. AIR 2005 AP 10}

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authority has been sought. He has also sought for an interim direction
restraining the government of Andhra Pradesh not to draw or spend
any sums of money from the consolidated fund of the State or
Contingency Fund of the State of Andhra Pradesh.

It was held that heading prefixed to sections cannot control the plain
words of the provision, only in the case of ambiguity or doubt, heading
or sub-heading may be referred to as an aid in construing provision.

MARGINAL NOTES

Marginal notes are the notes which are inserted at the side of the
sections in an Act and express the effect of the sections stated.
Marginal notes appended to the Articles of the constitution have been
to constitute part of the constitution as passed by the constituent
assembly and therefore they have been made use of in construing the
articles.

BARBER v. SOMERSET COUNTY COUNCIL,19

A teacher sought damages from his employer after suffering a work

related stress breakdown.

Held: The definition of the work expected of him did not justify the
demand placed upon him. The employer could have checked up on
him. The employer could have checked up on him during his sickness
absences, and given him support. It did not do so. It was liable. It was
further said that it is only when the contractual position between the
parties is explored fully along with the relevant statutory framework
that it would be possible to give appropriate content to the duty of the
reasonable care upon which an employee claiming damages for
negligent infliction of psychiatric injury at work would seek to rely.

In R v. Pace & Rogers,20

19 [2004] 1 WLR 1089

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The Principle issue before the court of Appeal was the mental element
required for an attempt to money launder. Thames Valley police sent
undercover officers into scrap metal yards to sell power cable, lead
flashing, even a brass war memorial plaque all purportedly stolen.
None of the items were in fact stolen. The defendants were convicted
of an attempt to convert criminal property section 327(1)(c). The
Crowns case was that though there could be no knowledge that the
goods were stolen since they were not they could be a suspicion
which is the entire Act required. The Court of Appeal thought it odd that
a man could not be guilty, under these circumstances, of actually
laundering but could be guilty of attempting it (Para 64) and, following
the case of R v Montilla,21 found that for an offence of converting
criminal property to be made out of property had actually to be
criminal.

. In Aisha Potty v Returning Officer, Kollar District Panchayath,22

the High Court of Kerala held that the marginal note of Article 243 O of
the constitution, namely, Bar to interference by courts in electoral
matters can be relied upon for interpretation of provision only if there
is ambiguity, the words of the main provision itself lends key to its
interpretation and the marginal note cannot control the same. Since
neither this Article nor section 88 of the Kerala Panchayat Raj Act,
1994, there is no intention to oust jurisdiction of civil court from
election matter.

In K.P. Varghese v Income Tax Officer,23it was stated by the

Supreme Court that while it is undoubtedly true that the marginal note

20 [2014] EWCA Crim 186

21 [2005] 1 Cr. App. R 26,

22 AIR 2002 Ker 89

23 AIR 1987 1 SC 1922

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to a section cannot be referred to for the purpose of construing the

section, it can certainly be relied upon as indicating the drift of the
section or to show what the section is dealing with. It cannot control
the interpretation of the words of a section particularly when the
language of the section is clear and unambiguous but, being part of the
statute, it prima facie furnishes some clue as to the meaning and
purpose of the section. Besides this a lot of cases show that in case of
constitutional matter, the marginal note can be taken into
consideration to resolve the ambiguity in a statute.

PROVISO

Proviso can be interpreted in so many forms and there is no guideline

in any judgement as to when a particular form is the proper form it all
depends upon the context and objects.

In Maha Prasad Singh v. Ramani Mohan Singh,24the respondent

filed the suit in the subordinate judge courts and the appellant
contended that the court had no jurisdiction to try the suit , the
property subjected to mortgage was situated in Santhal Parganas and
act 37 of 1855 provided that the whole administration of civil justice in
that area became vested in the officer or officers appointed by the
lieutenants governor of Bengal, the proviso of the enactment reads

Provided that all civil suits in which the matter in dispute shall exceed
the value of Rs.1000 shall be tried and determine according to the
general laws and regulations in the same manner as if this act has not
been passed.

It was held that the interpretation of this proviso is a matter of great

difficulty; two rival interpretations naturally suggest themselves. The
one is that the officer exercising the jurisdiction shall do in accordance
with the general law and regulations, so that the right of the parties are

24 AIR 1914 PC 140

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unaffected by the provision although they are to be pronounced upon

by a different judicial tribunal. The other is that not only the laws that
govern rights but also the procedure to enforce those rights is to
remain unchanged, now it must be observed that this is a proviso and
not an exception and accordingly taken into connection with the
general language of the previous portion of the clause the former of
these two interpretation is the one that commends itself to their
lordship so that it must be construed as providing that the special
officer or officers shall try such suits but in trying an determining them
they shall observe the general laws and regulations obtaining in Bengal
which but for the act would have applied equally in sonthal paranas. 25

In CIT vs Madurai Mills,26 the respondent held shares in three

companies which went into voluntary liquidation and the liquidator
made a distribution as a result of which the appellant got assets in lieu
of cash , on the question whether the value of the assets was liable as
capital gains , holding in favour of the respondent it was held

the appellant has invited our attention to the third proviso to Sub-
section (1) of Section 12B as originally enacted by the Income-tax and
Excess Profit Tax (Amendment) Act wherein it was stated, inter alia,
that any distribution of capital assets on the dissolution of a firm or
other association of persons or on the liquidation of a company shall
not for the purpose of Section 12B be treated as sale, exchange or
transfer of capital assets. It is urged that the omission 1973 S.C./86 VII
G--6 of such distribution of capital assets in the first proviso to Sub-
section (1) of Section 12B, as revived by the Finance (No. 3) Act of
1956, would show that the legislature wanted the distribution of capital
assets on dissolution of a firm or other association of persons or the

25 VEPA.P.SARATHI, INTERPRETATION OF STATUE 5TH EDITION, 2009 26. Commissioner of

Income-Tax, Madras V. Madurai Mills Co. Ltd. AIR 1973 SC 1357.

26
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liquidation of a company to be treated as sale, exchange or transfer.

This contention, in an opinion, is not well founded. It appears to us that
the cases of the distribution of capital assets on dissolution of a firm or
other association of persons or liquidation of a company were
mentioned in the third proviso under the earlier Act, as a matter of
clarification to allay fears even though the language of Sub-section (1)
of Section 12B was not intended to apply to such cases. Provisos, as
mentioned on page 221 of Caries on Statute Laws, Sixth Edition, are
often inserted to allay fears. A proviso is inserted to guard against the
particular case of which a particular person is apprehensive, although
the enactment was never intended to apply to his case or to any other
similar case at all.

It is well settled that consideration stemming from legislative history

must not be allowed to override the plain words of a statue , a proviso
cannot be construe as enlarging the scope of an enactment when it can
be fairly and properly construe without attributing to it that effect ,
further if the language of the enacting part of the statue is plain and
unambiguous and does not contain the provisions which are said to
occur in it , one cannot derive these provisions by implication of
proviso.

PREAMBLE

The Preamble of the statue like the long title is a part of the act and is
an admissible aid to construction, the preamble express the scope,
object and purpose of the act. It may be recite the ground and cause of
making the statue, the evil sought to be remedied, or the doubts which
may be intended to be settled in words of Sir John Nichol

It is to the preamble more specially we are to look for the reason or

the spirit of every statue, rehearsing this as it ordinarily does, the evils
sought to be remedied, or the doubts purported to be removed by the
statue, and so evidencing, in best and most satisfactory manner, the
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object or intention of legislature in making or passing the statue

itself.27

-THE PREAMBLE OF THE CONSTITUTION-

Preamble has the function to express certain facts. Seeing the

preamble of Indian Constitution it is easily accessible the motive and
object of the founding fathers that they wanted to make India into
Sovereign Socialist Secular, Democratic Republic. They wanted to
secure justice, liberty, equality, fraternity to every citizen.

The drafting committee of constituent assembly formulated the

preamble in the light of objective resolution but restricted it to defining
the essential feature of a new state and its basic socio political
objectives. The preamble of constitution like any preamble of any
statue furnishes the key to open the mind of the maker of the
constitution more so because the constitution assembly took great pain
in formulating it so that it may reflect the essential feature and basic
objectives of the constitution. The constitution including preamble
must be read as a whole and in case of doubt interpreted consistent
with its basic structure to promote the great objectives stated in the
preamble.28

The preamble as a whole can never be regarded as a source of

substantive power or as a source of any prohibition or limitation. 29The
preamble of the constitution amendment act can be used to
understand the object of the amendment. 30 The majority judgement in
27 Brett v Brett, (1826) 162 ER 456, p. 458- 459

28 Keshavanada Bharti v State of Karnataka AIR 1973 SC 1461, Minerva Mills v

Union of India AIR 1980 SC 1789

29 Indira Nehru Gandhi v. RajNarain AIR 1975 SC 2299, this has also been
reiterated in Raghu nath Rao GanpathRao v. Union Of India AIR 1993 SC 1267

30 Raghu nath Rao GanpathRao v. Union Of India AIR 1993 SC 1267

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Keshavananda bharti31 and Minerava Mills32 strongly relied upon the

preamble in reaching the conclusion that the power of amendment
confer by article 368 was limited and did not enable parliament to alter
the basic structure or framework of the constitution.33

By Sec. 2 of the constitution amendment act 1976 two amendments

were made by the parliaments in the preamble wherein the words
sovereign, democratic, republic were replaced by the words
sovereign socialist secular democratic were substituted and secondly
for the words unity of India the words unity and integrity of nations
were substituted. These amendments were to be held valid in Minerva
Millss case. The addition of the word socialist enables the court to lean
more in favour of nationalisation and economic equality. 34

Lord Somervell has stated

The principle that the preamble differs in their scope and

consequently in the weight, if any, which they may have on one side or
the other of the dispute. There can be no rule. If in an act the preamble
is general or brief statement of the main purpose, it, may well be of
little, if any, value. The act may say to go beyond or in some respect
fall short of the purpose so briefly stated.

EXTERNAL AIDS

External aids to interpretation of statutes include Parliamentary

History, Historical Facts and Surrounding Circumstances, Later

31 Supra Note 21

32 Ibid

33 Ibid

34 JUSTICE G.P. SINGH, THE PRINCIPLE OF INTERPRETATION OF STATUE11th

Ed., (2008)
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Scientific Inventions, Reference to Other Statutes (pari

materia) & Use of Foreign Decisions.

PARLIAMENTARY HISTORY

The ingredients of Parliamentary History are the bill in its original form
or the amendments considered during its progress in the Legislature,
Speech of the minister who introduced the bill in the Parliament which
is also referred to as Statements of Objects and Reasons, Reports of
Parliamentary debates and resolutions passed by either House of the
Parliament and the Reports submitted different Parliamentary
Committees.

According to the traditional English view the Parliamentary History of a

statute was not considered as an aid to construction. The Supreme
Court of India in the beginning enunciated the rule of exclusion of
Parliamentary History in the way it was traditionally enunciated by the
English Courts but on many an occasion, the court used this aid in
resolving questions of construction.35

SCIENTIFIC INVENTIONS

The laws made in the past are applied in the present contemporary
society in the light of changed social, political, legal and economic
circumstances taking into consideration the advancement in science
and technology. Statutes must be interpreted in accordance with the
spirit of the Constitution of India even though the statutes were passed
before independence of India or before the commencement of our
Constitution.

REFERENCE TO OTHER STATUTES

Statutes must be read as a whole in order to understand the words in

their context. Problem arises when a statute is not complete in itself
35 Refer Generally, Singh G.P., Principles of Statutory Interpretation, 221
(Wadhwa and Company, Nagpur, Tenth Edition, 2006)
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i.e. the words used in the statute are not explained clearly. 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. The meaning of the phrase pari materia was
explained in an American Case, United Society v. Eagle Bank
(1829) in the following words: Statutes are in pari materia which relate
to the same person or thing, or to the same class of persons or things.
The word par must not be confounded with the word similes. It is used
in opposition to it- intimating not likeness merely but identity. It is a
phrase applicable to public statutes or general laws made at different
times and in reference to the same subject.36

USE OF FOREIGN DECISIONS

Reference to decisions of the English Courts was a common practice in

the administration of justice in pre independent India. The reason
behind this was that the Modern Indian Legal System owes its origin to
the English Common Law System. But after the commencement of the
Constitution of India as a result of the incorporation of the Fundamental
Rights, the Supreme Court of India gave more access to American
precedents.

It cannot, however, be doubted that knowledge of English law and

precedents when the language of an Indian Act was not clear or
express, has often been of valuable assistance. Speaking about Indian
Codes Shri M.C.Setalvad has stated: Where the language of the code
was clear and applicable, no question of relying on English Authority
would arise. But very often the general rule in the Indian Code was
based on an English Principle and in such cases the Indian Courts
frequently sought the assistance of English Decisions to support the
conclusions they reached. They could not otherwise for not only the

36 See., Sigh G.P., Principles of Statutory Interpretation, 275(Wadhwa and

Company, Nagpur, Tenth Edition, 2006)
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general rules contained in the codes but some of the illustrations given
to clarify the general rules were based on English decisions. 37

Most acts contain exceptions to their main purpose on the meaning, on

which such preamble would presumably, throw no light. On the other
hand some general and most local acts have their limits set out in
some details there may be cases in which a section read with a
preamble may have different meaning from that which it would have if
there were no preamble.38

CONCLUSION

The Internal Aids to construction evolved over time as a very important

and bankable source while interpreting any statute. The view earlier
was to give it a very narrow scope however over time the jurisprudence
of interpretation has developed so has the value of internal Aids, Even
today Internal Aids to construction are given preference over external
aids to construction. Of course it is true that when the meaning of a
section is clear internal aids have no relevance and also there is no
way that the meaning of a section could be changed due to the internal
aids i.e., even if the headings (Internal Aid) of a section is contrary to
the subject matter or content of a section and if the section is
sufficiently clear, the heading cannot be used to nullify the meaning of
37 See., Setalvad M.C., The Common Law in India , 61 as cited in Singh G.P.,
Principles of Statutory Interpretations, 327(Wadhwa and Company, Nagpur, Tenth
Edition, 2006).

38 (1957) 1 ALL ER 49 : 1957 AC 436 (HL)

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the section, still headings (internal aids) play a very important role. It is
given a high preference over External aids. Also the 63rd Law
commission and the 183rd Law Commission of India reports signify the
importance attached to internal aids of construction. By virtue of the
case laws, Law Commission reports (referred above) and the opinion of
various authors it is now clear that internal aids to construction could
be construed very important sources to know the intention of the
legislature. The intention of the legislature could be ascertained
through Headings, preamble, proviso, marginal notes, etcTherefore
our initial question as to whether internal aids to construction can be
construed to represent/signify the intention of the legislature is
answered in the positive.

BIBLIOGRAPHY

BOOKS REFERRED

G.P.SINGH, THE PRINCIPLE OF STATUTORY INTERPRETATION 11TH ED.

(2008)
18

HALSUBURYS LAWS DEEDS AND OTHER INSTRUMENTS VOL 13 (2007

REISSUE)

MAXWELL, INTERPRETATION OF STATUTES, (ED.10,)

P.M. BAKSHI, INTERPRETATION OF STATUTES (2010 REPRINT)

PUFENDORF, TR KENNETT, OF THE LAW OF NATURE AND NATIONS (4TH

ED. 1729)

VEPA.P.SARATHI, INTERPRETATION OF STATUE 5TH EDITION, 2009

ARTICLES REFERRED

Rajkumar S. Adukia, Interpretation of Statutes

OTHER AUTHORITIES Law Commission of India, 183rd Report, A

continuum on the General Clauses Act, 1897 with special reference to
the admissibility and codification of external aids to interpretation of
statutes,

Law Commission of India, 60th Report, Chapter 2, Para 2.2