The General Clauses Act, 1897

(c)(i) Person

According to section 3(42) of the General Clauses Act, 1897, “Person” shall include:

(a)any company, or

(b)association, or

(c)body of individuals, whether incorporated or not

(ii)Good Faith

According to section 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 question of good faith under the General Clauses Act, 1897 is one of fact. It is to determine with reference to the facts and circumstances of each case. Thus, anything done with due care and attention, which is not malafide is presumed to have been done in good faith. For eg: An authority is not acting honestly where it had a suspicion that there was something wrong and did not make further enquiries.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, May 2026, 5(c) (New Scheme).

(c)(1) As per the Companies (Cost Records and Audit) Rules, 2014, every prescribed company shall inform the cost auditor concerned of his or her or its appointment as such and file a notice of such appointment with the Central Government within a period of thirty days of the Board meeting in which such appointment is made or within a period of one hundred and eighty days of the commencement of the financial year, whichever is earlier.

As per section 9 of the General Clauses Act, 1879, in any legislation or regulation, it shall be sufficient, for the purpose 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 time, to use the word “to”.

In the given question, the time limit will be 31 August 2024 [within 30 days of 1 August 2024 (date of the Board meeting)] or 27 September 2024 (180 days from commencement of financial year), whichever is earlier.

Thus, ABC Ltd. shall file the cost auditor appointment by 31 August 2024.

(2)According to section 3(38) of the General Clauses Act, 1897, ‘Offence’ shall mean any act or omission made punishable by any law for the time being in force.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, January 2026, 2(c) (New Scheme).

(c)Provisions under the Companies Act, 2013

Chief Financial Officer (CFO) comes within the definition of Key Managerial Personnel (KMP) as defined in Section 2(51) read with Section 203(1) of the Companies Act, 2013.

Section 203(3) of the Companies Act, 2013 provides that Whole Time Key Managerial Personnel shall not hold office in more than one company except in its subsidiary company at the same time.

Provisions under the General Clauses Act, 1897

Section 13(2) of the General Clauses Act, 1897 provides that in all Central Acts and Regulations, unless there is anything repugnant in the subject or context, words in the singular shall include the plural, and vice versa.

With respect to the issue that whether a Whole Time KMP of a holding company be appointed in more than one subsidiary company or can be appointed in only one subsidiary company.

It can be noted that Section 13 of the General Clauses Act, 1897 provides that the word ‘singular’ shall include the ‘plural’, unless there is anything repugnant to the subject or the context.

Hence, Purva, the CFO (Whole Time Key Managerial Personnel) may hold office in more than one subsidiary company (i.e. ACL and SBL) as per the present law.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, May 2025, 2(c) (New Scheme).

(c)According to section 3(18) of the General Clauses Act, 1897, ‘Document’ shall include:

-any matter written, expressed or described upon any substance;

-by means of letters, figures or marks or by more than one of those means;

-which is intended to be used or which may be used, for the purpose or recording that matter.

For example, books, file, painting, inscription and even computer files are all documents. However, it does not include Indian Currency Notes.

(i)Power of Attorney

It is a written legal instrument by which a person (the principal) authorizes another person (the agent) to act on their behalf. It meets the criteria of a document as it is written or expressed, contains information describing the authority granted and is intended to record and communicate the legal relationship.

(ii)Cheque

A cheque is a negotiable instrument that directs a bank to pay a specified sum of money from the drawer's account to the payee. It qualifies as a document because it is written or printed, records details such as the amount, date, and parties involved and serves as evidence of a financial transaction.

Hence, both a Power of Attorney and a Cheque fall within the definition of a "document" within the meaning of Section 3(18) of the General Clauses Act, 1897. They are tangible representations of written information intended for legal or transactional purposes.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, January 2025, 2(c) (New Scheme).

(c)Definition of the term “Person”

As per section 3(42) of the General Clauses Act, 1897, “Person” shall include:

-any company, or

-an association, or

-body of individuals, whether incorporated or not.

From the above definition, we can conclude:

(i)An Idol: An idol is a juristic person. A juristic person is a legal entity with a legal personality that is recognized by law. Hence, an idol is a person.

(ii)A Public Body: A public body to be a person need not always be setup by the statute. It may be set-up by the Government by exercising its executive function. A public body is a legal entity and is treated as a "person."

(iii)A Company: The definition of person includes a company. Thus, a company is a person.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, January 2025, 5(c) (New Scheme).

(d)“Offici al Gazet te” [Section 3(39) of the General Clauses Act, 1897]: ‘Official Gazette’

or ‘Gazette’ shall mean:

(i)The Gazette of India, or

(ii)The Official Gazette of a state.

The Gazette of India is a public journal and an authorised legal document of the Government of India, published weekly by the Department of Publication, Ministry of Housing and Urban Affairs. As a public journal, the Gazette prints official notices from the government. It is authentic in content, accurate and strictly in accordance with the Government policies and decisions. The gazette is printed by the Government of India Press.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, November 2022, 5(d) (Old Scheme).

(c)Financial Year: According to Section 3(21) of the General Clauses Act, 1897, financial year shall mean the year commencing on the first day of April.

The term Year has been defined under section 3(66) as a year reckoned according to the British calendar. Thus, as per the General Clauses Act, 1897, year means calendar year which starts from January to December.

Difference between Financial Year and Calendar Year: Financial year starts from first day of April but Calendar Year starts from first day of January.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, December 2021, 4(c) (Old Scheme).

(d)(i) Rule: As per section 3(51) of the General Clauses Act, 1897, ‘Rule’ shall mean a rule made in exercise of a power conferred by any enactment, and shall include a Regulation made as a rule under any enactment.

(ii)Oath: As per section 3(37) of the General Clauses Act, 1897, ‘Oath’ shall include affirmation and declaration in the case of persons by law allowed to affirm or declare instead of swearing.

(iii)Person: As per section 3(42) of the General Clauses Act, 1897, “Person” shall include:

(1)any company, or

(2)association, or

(3)body of individuals, whether incorporated or not.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, December 2021, 5(d) (Old Scheme).

(c)According to section 21 of the General Clauses Act, 1897, where by any legislation or regulation a power to issue notifications, orders, rules or byelaws is conferred, then that power includes the power, exercisable in the like manner and subject to the like sanction and conditions (if any), to add to, amend, vary or rescind any notification, order, rule or bye-law so issued.

In the case of Rasid Javed v. State of Uttar Pradesh, the Supreme Court held that under section 21 of the Act, an authority which has the power to issue a notification also has the undoubted power to rescind or modify the notification in the like manner.

In the given question, the Central Government had issued a notification on 1st April 2025 granting tax exemption to a specified class of manufacturers for a period of three years. Subsequently, on 1st December 2025, the Government withdrew the exemption by issuing another notification.

Since, the Government had the power to issue the original notification, it also had the power to rescind or modify the same under section 21 of the General Clauses Act, 1897.

The Central Government, having the power to issue the original notification, inherently possesses the power to rescind it even before the expiry of the stated 3 year period, particularly when the withdrawal is necessitated by misuse of the exemption. Therefore, the withdrawal of the exemption before the expiry of three years is valid in law, and the contention of the manufacturer that the notification could not be rescinded before completion of three years is not sustainable.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, May 2026, 2(c) (New Scheme).

(c)According to section 12 of the General Clauses Act, 1897, where, by any enactment now in force or hereafter to be in force, any duty of customs or excise or in the nature thereof, is leviable on any given quantity, by weight, measure or value of any goods or merchandise, then a like duty is leviable according to the same rate on any greater or less quantity.

The term pro rata means in proportion to the quantity produced. It is a latin word used to describe a proportionate allocation.

Thus, when a statute fixes a rate per unit, it applies proportionately to fractions of that unit, unless the statute expressly provides otherwise.

In the question given, Factory A produced 350 litres in total and paid duty on only for 300 litres, leaving 50 litres unpaid. Applying section 13 of the General Clauses Act, 1879, the expression “100 litres” must be read in a manner that covers any multiple or fraction thereof. Thus, total duty to be paid would be ₹ 35 (i.e., 350/100 X ₹ 10).

Therefore, Factory A is liable to pay excise duty on the remaining 50 litres of chemical also, which amounts to ₹ 5.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, January 2026, 5(c) (New Scheme).

(c)(i) As per section 5 of the General Clauses Act, 1897, where any Central Act has not specifically mentioned a particular date to come into force, it shall be implemented on the day on which it receives the assent of the Governor General in case of a Central Act made before the commencement of the Indian Constitution and/or, of the President, in case of an Act of Parliament.

Where, if any specific date of enforcement is prescribed in the Official Gazette, the Act shall into enforcement from such date.

(ii)According to section 6 of the General Clauses Act, 1897, 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 previous operation of any enactment so repealed or

anything duly done or suffered thereunder; or

•Affect any right, privilege, obligation or liability acquired, accrued

or incurred under any enactment so repealed; or

•Affect any penalty, forfeiture or punishment incurred in respect

of any offence committed against any enactment so repealed; 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.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, September 2024, 2(c) (New Scheme).

(c)Gender and number

According to section 13 of the General Clauses Act, 1897, in all legislations and regulations, unless there is anything repugnant in the subject or context:

(1)Words importing the masculine gender shall be taken to include females, and

(2)Words in singular shall include the plural and vice versa.

In accordance with the rule that the words importing the masculine gender are to be taken to include females, the word men may be properly held to include women, and the pronoun ‘he’ and its derivatives may be construed to refer to any person whether male or female. So, the words ‘his father and mother’ as they occur in section 125(1)(d) of the CrPC, 1973 have been con strued to include ‘her father and mother’ and a daughter has been held to be liable to maintain her father unable to maintain himself.

Where a word connoting a common gender is available but the word used conveys a specific gender, there is a presumption that the provisions of General Clauses Act, 1897 do not apply.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, May 2024, 5(c) (New Scheme).

(b)As per section 2(87) of the Companies Act, 2013, Subsidiary company, in relation to any other company (that is to say the holding company), means a company in which the holding company -

(i)controls the composition of the Board of Directors; or

(ii)exercises or controls more than one-half of the total voting power either at its own or together with one or more of its subsidiary companies:

Taking into account the above provision, X Limited, Y Limited and Z Limited are the subsidiary companies of Moon Pharma Limited.

Regarding the question, Mr. Avinash who is a Whole Time Director (KMP) in Moon Pharma Limited, wants to get appointed as Whole Time Director in X Limited and Y Limited.

Section 203(3) of the Companies Act, 2013 provides that whole time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time.

It can be noted that section 13 of the General Clauses Act, 1897 provides that the word ‘singular’ shall include the ‘plural’, unless there is anything repugnant to the subject or the context. Thus, a whole time key managerial personnel may hold office in more than one subsidiary company as per the present law.

Hence, Mr. Avinash can hold office of Whole Time Director also in X Limited and Y Limited.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, November 2023, 4(b) (Old Scheme).

(c)“Effect of Repeal” [Section 6 of the General Clauses A ct, 1897]: 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:

1.Revive anything not enforced or prevailed during the period at which repeal is effected or;

2.Affect the previous operation of any enactment so repealed or anything duly done or suffered thereunder; or

3.Affect any right , privilege, obligation or liability acquired, accrued or incurred under any enactment so repealed; or

4.Affect any penalty , forfeiture or punishment incurred in respect of any offence committed against any enactment so repealed; or

5.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.

In State of Uttar Pradesh v. Hirendra Pal Singh, (2011), 5 SCC 305, SC held that whenever an Act is repealed, it must be considered as if it had never existed. Object of repeal is to obliterate the Act from statutory books, except for certain purposes as provided under section 6 of the Act.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, May 2023, 4(c) (Old Scheme).

(c)According to Section 27 of the General Clauses Act, 1897, 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:

(i)Properly addressing

(ii)Pre-paying, and

(iii)Posting by registered post.

Case Laws

(i)In Smt. Vandana Gulati Vs. Gurmeet Singh alias Mangal Singh, AIR 2013 All 69,

it was held that where notice sent by registered post to person concerned at proper address is deemed to be served upon him in due course unless contrary is proved.

(ii)In Jagdish Singh Vs. Nathu Singh, AIR 1992 SC 1604 , it was held that where a notice is sent by the landlord by registered post and the same is returned by the tenant with an endorsement of refusal, it will be presumed that the notice has been served.

In other words, Endorsement ‘not claimed/not met’ is sufficient to prove deemed service of notice.

In the given question, Mr. A has served the notice to Mr. B by registered post which was refused to be accepted by Mrs. C (wife of Mr. B). However, Mr. B cannot deny to vacate the flat on ground of non- receipt of notice, since Mrs. C had refused to accept the notice served by Mr. A through registered post.

Hence, the notice served by Mr. A is tenable provided one- month prior notice given to Mr. B.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, November 2022, 4(c) (Old Scheme).

(d)“Effect of Repeal”: According to section 6 of the General Clauses Act, 1897, 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:

responsibility or any inquiry, litigation or remedy may be initiated, continued or insisted.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, May 2022, 3(d) (Old Scheme).

(c)According to section 17 of the General Clauses Act, 1897, 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 functions of an office, to mention the official title of the officer at present executing the functions, or that of the officer by whom the functions are commonly executed.

According to section 18 of the General Clauses Act, 1897, in any Central Act or Regulation made after the commencement of this Act, it shall be sufficient, for the purpose of indicating the relation of a law to the successors of any functionaries or of corporations having perpetual succession, to express its relation to the functionaries or corporations.

In the present case, the National Infrastructure Authority Act, 2005 is a Central Act enacted after the commencement of the General Clauses Act, 1897.

The Act originally conferred powers on the "Chairperson." Subsequently, the designation was changed to "Managing Director," and the same powers were vested in the new office.

By virtue of provisions of the General Clauses Act, 1897, the reference to "Chairperson" includes the successor office now designated as "Managing Director." Therefore, the licence granted by the Managing Director is legally valid, and the company's contention is untenable.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, September 2026, 5(c) (New Scheme).

(c)As per Section 17 of the General Clauses Act, 1897, 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 functions of an office, to mention the official title of the officer at present executing the functions, or that of the officer by whom the functions are commonly executed.

As per Section 18 of the General Clauses Act, 1897, in any Central Act or Regulation made after the commencement of this Act, it shall be sufficient, for the purpose of indicating the relation of a law to the successors of any functionaries or of corporations having perpetual succession, to express its relation to the functionaries or corporations.

In other words, the General Clauses Act, 1897, provides general definitions and rules for interpreting laws, particularly Central Acts and Regulations. Section 18 specifically deals with the continuity of laws when a functionary is replaced. It clarifies that when a law refers to a specific official, it's not limited to that individual but extends to their successors.

This means that if a law grants power to a particular officer, that power also extends to their successor, unless explicitly stated otherwise. A successor in office can generally continue a case under the General Clauses Act, and this is also related to the doctrine of merger.

As per Section 18, the power to appoint includes the power to appoint ex-officio, meaning the authority is attached to the office, not the individual. Further, under section 17, official acts continue to remain valid despite changes in officeholders.

As per the facts of the question and a combined reading of Sections 17 and 18 of the General Clauses Act, 1897, Mr. G, in his capacity as the current Assistant Commissioner, is legally competent to order the demolition of the construction. This is because the original order was issued by Mr. S, the former Assistant Commissioner, in his official capacity, and the authority to act continues with the office, not the individual.

Hence, the claim of Dream Builders Limited is not valid.

Source⁠​‌​‌‌​‌​⁠: ICAI Suggested Answers, May 2025, 5(c) (New Scheme).