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(..8..)

Interpretation with reference to the subject matter and purpose

With reference to the Subject matter and Purpose

Question Bank

Q.1. Q.4. What is welfare legislation? What are the basic considerations in the

interpretation of welfare Statutes? State the difference in interpretation of welfare

legislation and penal legislation.

Short Notes

(i) Interpretation of directory and mandatory provisions.

(ii) Interpretation of enabling statute.

(iii) Interpretation of codifying statute.

(iv) Interpretation of welfare legislation.

Notes 1-Remedial statute/Welfare Statute/Beneficial Statute:-

I. Introduction:-

One class of statutes enacted for the benefit of society are called ‘Welfare Statutes”,

“Remedial statutes”, ‘Socio-Economics Legislations’ or “Beneficial statutes”. Those laws

which are enacted for the purpose of social welfare are categorized as social legislation.

Social/welfare legislation derives its inspiration from Constitution. An era of social

legislation started soon after Indian independence. Many welfare legislations have been

passed since then.

II. The objectives of social legislation:-

The objectives of social legislation are many folds such as (i) Removal of

discrimination on the grounds of sex, religion, caste, class, etc., and to promote equality

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among all citizens. (ii) To safeguard the rights of the weaker sections like women, children,

elderly, widows, destitute, disabled, and the backward classes. (iii) to eradicate traditional

malpractices and social evils such as untouchability, dowry, child marriage, female

infanticide, etc. (iv) to provide social security.

III. Examples of the legislation-

A number of welfare statutes have been passed since independence, such as the

Juvenile Justice Act of 2001, the Maternity Benefit (Amendment) Act of 2017, The

Protection of Civil Rights Act 1955, and The SC and ST Act. 1989, The Equal Opportunity

Protection of Rights and Full Participation Act, 1995, The Mental Health Act 1987, The

Contract Labour (Regulation and Abolition) Act, 1970, Employees’ State Insurance Act,

1948, The Equal Remuneration Act, of 1976, The Industrial Disputes Act, 1947, The Child

Labour (Prohibition and Regulation) Act, 1986, Employees’ Compensation Act, 1923, The

Minimum Wages Act, 1948, Consumer Protection Act, 1986 and so on and so forth. There

is a number of Supreme Court judgments and writs like the release of bonded labourers,

security of women at workplaces, banning child Labour, etc.

IV. Rules of Interpretation of Statute in such cases:-

The Welfare Statute receives liberal interpretation, and in case of any doubt, it is

resolved in favour of the person for whose favour the statute is enacted. Beneficial Statutes

are given the widest possible meaning. When there are two or more possible ways of

interpretation of a section or a word, then the meaning which gives relief and protects the

benefits intended to be given by the legislatures should be chosen. The statutes have to be

construed in their correct perspective to fructify the legislative intent.

In Central Railway Workshop, Jhansi v. Vishwanath¹,

The Supreme Court held that all the legislations in a welfare state are enacted with the

object of promoting the general welfare, but certain types of enactments are more open to

some urgent social demands and also have a more immediate and visible impact on social

evils by operating more directly to achieve social reforms.

In B.Shah v. Presiding Officer, Labour Court²

The issue before the court was whether the maternity benefit to the woman for 12 weeks

entitles her payment assuming a week of 7 days or of 6 days, excluding one holiday.

The Supreme Court observed that “In interpretation provisions of beneficial pieces of

legislation which is intended to achieve the object of doing social justice to woman workers

employed in the plantations and which squarely fall within the preview of Art. 42(3) of the

¹1970 SCR (2) 726

²AIR 1978-12

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Constitution, the beneficial rule of construction which would enable the woman worker not

only to subsist but also to make up her dissipated’ energy, nurse her child, preserve her

efficiency as a worker, and maintain the level of her previous efficiency and output has to

be adopted by the Court”.

The Court ordered to hold a week of 7 days and pay her maternity benefits for 84

days and not only 72 days.

In Manohar Lal v. The State of Punjab³

Facts- The shopkeeper was second time convicted for contravening the provisions of S.

7(1) of the Punjab Trade Employees Act, 1940, by which the shop needs to be closed for a

holiday once a week since there should be at least one holiday for workers.

The Shopkeeper contended that he doesn’t have any workers and that he has the right to

work for all days. He has the right to carry business and occupation as guaranteed by the

Constitution under Art. 14(5) and Art. 19(1) (f) and (g).

The Supreme Court observed that “the main object of the Act was the welfare of the

employees and to protect their as well as the employers’ health by preventing them from

overworking. Such restriction being in the interest of the general public was reasonable

restriction and not unconstitutional.”

***

Notes 2. Interpretation of Taxing Statute:-

I. Taxing Statute Meaning: -

A ‘taxing statute’ is one which imposes a tax on income or certain other kinds of

transactions. Taxing Statutes may be in the form of income tax, wealth tax, sales tax, gifts

tax etc. Tax is a source of revenue generation for the state. The collected money is utilized

for the welfare of the people. A tax can be levied only when a statute unequivocally so

provides. It is because the taxing statute imposes a pecuniary burden on the taxpayer.

II. Rules of interpretation of taxing Statutes: -

The taxing statutes are construed strictly because they are a burden on taxpayers.

The plain, clear, and direct grammatical meaning is given to such statutes. Where there are

two possible outcomes, then that interpretation is to be given, which favours the

taxpayer/assesses.

In State of Uttar Pradesh v. Kores India Ltd⁴.

The issue before the court was to include carbon paper in the definition of the word “paper”.

³AIR 1961 SC 418

⁴AIR 1977 SC 132

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The Supreme Court held that in common parlance, word paper is one which is used for

writing, packaging, and printing, whereas carbon paper is used entirely for different

purposes. Therefore, carbon paper will not be included in normal paper so as to make it

subject to taxation.”

Thus, the court strictly interpreted the definition of the word ‘paper’ in favour of the

carbon paper producer accesses.

In Innamuri Gopalam and Maddala Nagendrudu v State of A. P⁵,

Facts:- the exemption was denied to the assessee on the ground that the intention of the

notification was to avoid double taxation, and as this was not a case of double taxation, no

exemption could be granted.

The Supreme Court held that on the plain language of the notification, the assessee was

entitled to the exemption; hence tax cannot be levied.

The Court further observed, "In construing a statutory provision, the first and

foremost rule is the literary construction. All the court has to see at the very outset is what

the provision says. If the provision is unambiguous and the legislative intent is clear from

the provision, the court need not call into aid any other rules of construction of statutes.

The other construction rules are called into aid only when the legislative intent is unclear."

***

Notes 3. Interpretation of Penal Statute:-

I. Meaning:-

‘Penal Statutes’ may be defined as those statutes that impose penal liability

on a person who is guilty of any offence. The word penal connotes some form of

punishment imposed against the individual by the mandate of the State. A statute is to be

regarded as penal if it imposes a fine, penalty or forfeiture of property as punishment. Such

statutes may be in the form of a comprehensive criminal code or a large number of sections

providing punishment for different wrongs.

Indian Penal Code, Prevention of Food Adulteration Act, 1954, Arms Act 1959,

Prevention of Corruption Act. 1988 are some of the examples of Penal Statutes.

II. Rules of interpretation of penal Statutes: -

The rules of interpretation of penal statutes are the same as that of the taxing statutes.

The general rule of interpretation of a penal statute is that it must be strictly construed. If

there are two interpretations possible of any provision, the one in faour of the accused is to

be adopted. Also, if there is any doubt about the meaning of any provision, the benefit of

⁵1964 2 SCR 888

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the doubt is to be given to the accused. Moreover, in all civilized penal jurisprudence, an

accused is always presumed innocent unless his guilt is proved beyond reasonable doubt.

In Tolaram v. State of Bombay⁶

The Supreme Court observed that “if two possible and reasonable constructions are put

on a penal provision, the court must lean towards that construction which exempts the

subject from penalty rather than the one which imposes the penalty”.

State of West Bengal v. S.K. Guha⁷

The Supreme Court observed that “it is recognized rule of construction of the penal

statutes that where the equivocal word or ambiguous sentence creates a reasonable doubt

of its meaning which the rules of interpretation fail to solve, the benefit of the doubt be

given to the subject and against the legislature that has failed to explain itself”.

***

Notes-4 Enabling statute:-

I. Meaning:-

An ‘enabling statute’ is one which enlarges the common law when it is narrow. It

makes doing something lawful which would not be otherwise lawful. By an ‘enabling Act’

the legislature enables somewhat to be done. It empowers at the same time, by necessary

implication, to do the indispensable things for carrying out the object of the legislation.

The conditions which have been put in by an enabling Act for the public good must be

compiled as they are indispensable⁸. S. 49-A (1) and 49-A (2) of the Advocates Act, 1961,

as amended by Act 1964, is an example of enabling Act.

II. Principles of Interpretation:

The enabling words in a statute are to be construed as compulsory when the object

of the power is to effectuate a legal right. Thus, the Act, which authorises the compulsory

acquisition of land for public purposes and deals with public nuisance, has compulsorily to

use that power. When the enabling Act gives power to a public body to do an act of a public

character, it carries with it the power to accomplish it; otherwise, the power so given would

be meaningless. Another rule of interpretation of such statutes is that where legislature lays

down the mode of dealing with the particular matter in express terms, it excludes any other

mode except the specifically authorised. This rule is expressed in the maxim “expression

unius est exclusion alterius” which means express enactment shuts the doors to further

implications.

⁶AIR 1954 SC 496

⁷AIR 1982 SC 949

⁸Bidi Leaves and Tobacco Merchants Association v. State of Bombay AIR 1964 Bom 51

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In Addl. District Magistrate Delhi Admn. v. Siri Ram⁹,

The Supreme Court has observed that “It is a well-recognized principle of interpretation

of a statute that conferment of rule-making power by an Act does not allow the rule-making

authority to make a rule which trips beyond the scope of the enabling Act or which is

inconsistent therewith or repugnant thereto.”

References

https://sociallawstoday.com/beneficial-construction-and-relevant-case-laws/#_ftnref1

https://madhyapradesh.pscnotes.com/economy-booster/concept-of-social-welfare-

legislations-in-india/

http://avadhlawcollege.com/wp-content/uploads/2020/06/Interpretation-of-Statutes-Unit-

4.pdf

https://old.amu.ac.in/emp/studym/100010043.pdf

https://blog.ipleaders.in/interpretation-taxation-

statute/#:~:text=Any%20taxation%20statute%20involves%20three,once%20the%20asses

sment%20is%20made .

http://law.uok.edu.in/Files/5ce6c765-c013-446c-b6ac-

b9de496f8751/Custom/Interpretation_UNIT_IV.pdf

*****

⁹(2000) 5 SCC 451