Chapter 14 of 15 - Corporate and Other Laws

Interpretation of Statutes

31 questionsasked in 13 of 13 attemptsOrder: by topic, latest first

Chapter weightageCh. 13Ch. 15
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May 20263(c)4 marksNew Scheme

(c)Discuss the rule of Harmonious Construction and how it is applied in the 4 Interpretation of Statutes. (4 Marks)

May 20264(c)4 marksNew Scheme

(c)With reference to the Interpretation of Statutes what do you mean by the term 'ejusdem generis' and state the exceptions to the Rule of Ejusdem

Generis. (4 Marks)

January 20263(c)4 marksNew Scheme

(c)Write any four differences between The Rule of Beneficial Construction and Rule of Exceptional Construction. (4 Marks)

May 20253(c)4 marksNew Scheme

(c)‘The meaning of a word is to be judged by the company it keeps'. Explain the concept of 'Noscitur A Sociis'. (4 Marks)

January 20253(c)4 marksNew Scheme

(c)Explain the Latin term "Absoluta sententia expositore non indiget" and how would the same help in correctly interpreting a definition given in a legislation or statute?

September 20243(c)4 marksNew Scheme

(c)Explain the rule which suggests that the 'Plain word requires no explanation' and 'Technical words be understood in technical sense only’.

(4 Marks)

November 20235(c)3 marksOld Scheme

(c)Define the concept of ‘ Doctrine of Noscitur a Sociis ’ with example in accordance with the provisions of the Interpretation of Statutes. (3 Marks)

November 20224(d)3 marksOld Scheme

(d)Explain in reference to Interpretation of Statutes, the cases where Rule of Ejusdem Generis will not apply. (3 Marks)

December 20213(d)3 marksOld Scheme

(d)Explain the Mischi ef Rule / the rule in Heydon’ s case for interpretation of statute. Also give four matters it considers in construing an Act. (3 Marks)

September 20261(a)5 marksNew Scheme

(a)Bharat Uday Limited (BUL) is incorporated on 1-4-2026. The company has a paid-up share capital of ₹ 50 crores. Following are key shareholders of the company:

Shareholders₹
NMDC (Subsidiary of Central Government) U.P.P.L. (Subsidiary of U.P. Government) KGRL (Subsidiary of Gujarat Government) Others15 cr. 10 cr. 10 cr. 15 cr.

The first auditor of the company has been appointed by the Board of Directors on 31-5-2026. The members of the company have objected to such an appointment by the Board of Directors. According to the members, only the members can appoint the first auditor.

Advise the company on the validity of such appointment as per the provisions of the Companies Act, 2013. Also, advise whether the contention of members of the company is correct? (5 Marks)

May 20265(b)5 marksNew Scheme

(b)ABC Aeromatics Ltd. is an unlisted public company incorporated under the Companies Act, 2013. It operates in the compliance-tech space, providing regulatory software solutions. The company has a paid-up capital of ₹ 60 lakhs, a turnover of ₹ 1.35 crore, 185 shareholders, and 5 directors. It has raised secured debt of ₹ 20 lakhs from two banks.

To simplify its governance structure and reduce compliance burdens, the Board has proposed the conversion of the company into a Limited Liability Partnership (LLP) under the name ABC Aeromatics LLP. All existing shareholders of the company will become partners in the LLP. The company expects that the business operations, client contracts, and employee structure will continue seamlessly after conversion.

However, one issue has emerged during the legal review process:

The company is facing a regulatory action, a show cause notice under the Companies Act, 2013, for alleged failure to comply with applicable accounting standards in FY 2020-21 has been issued. This proceeding is yet to be concluded.

In this context, management seeks legal advice on the following:

(i)Can ABC Aeromatics Ltd. legally proceed with its conversion into a Limited Liability Partnership under the LLP Act, 2008, considering the pending regulatory proceeding? (2 Marks)

(ii)Also discuss the effect of registration under Section 58 of the Limited Liability Partnership Act, 2008. (3 Marks)

September 20255(a) OR5 marksNew Scheme

(a)SMTN Limited is a listed company that operates in the pharmaceutical sector. The company's annual accounts for the year 2023-24 were audited by a prominent audit firm, JJ & Co. Following an investigation by the Ministry of Corporate Affairs (MCA), it was discovered that the audit report issued by JJ & Co. contained several discrepancies, including failure to disclose material information regarding the company's liabilities and misstatements in its revenue recognition practices.

The issue was raised by a group of minority shareholders, who alleged that the audit firm had not complied with auditing standards and had failed to conduct a proper audit. The MCA referred the matter to the National Financial Reporting Authority (NFRA), a body established under Section 132 of the Companies Act, 2013, to investigate whether the audit of SMTN Limited's financial statements was conducted in compliance with accounting and auditing standards.

In the light of provisions of the Companies Act, 2013, explain any 3 functions and duties of NFRA and what actions can the NFRA take against the audit firm, JJ & Co., based on its findings upholding the allegations raised by the group of minority shareholders? (5 Marks)

May 20255(a)5 marksNew Scheme

(a)Write down functions and duties of the National Financial Reporting

Authority. (5 Marks)

May 20233(b)4 marksOld Scheme

(b)L Ltd. having 2,000 members with paid-up capital of ₹ 1 crore, decided to hold its Annual General Meeting (AGM) on 21st August, 2022. On 2nd July, 2022, 50 members holding paid-up capital of ₹ 6 lakh in aggregate, has given notice of their intention for a resolution to be passed at the Annual General Meeting for appointing Dawar & Co., as its Statutory auditor from Financial Year 2022-23 onwards, instead of its existing Statutory auditor, SNS & Co. which was originally appointed for 5 years term and had completed only 3 years term.

When such notice was received by existing auditors, they sent a representation in writing to the company along with a request for its notification to the members of the company.

In the context of aforesaid facts, answer the following question(s) according to provisions of the Companies Act, 2013:

(i)Whether the said notice was given by adequate number of members and within the prescribed time limit to L Ltd.?

(ii)Whether the company was bound to send such representation to its members made by SNS & Co? (4 Marks)

May 20225(d)3 marksOld Scheme

(d)What is the effect of proviso? Does it qualify the main provisions of the enactment? Explain it with reference to Interpretation of Statutes. (3 Marks)

January 20264(c)4 marksNew Scheme

(c)Statutory interpretation becomes essential when the language of a statute is unclear or leads to ambiguity. Discuss the circumstances under which the interpretation of statutes is applied. (4 Marks)

December 20214(d)3 marksOld Scheme

(d)In what way are the following terms considered as external aid in the interpretation of statutes:

(i)Historical Setting

(ii)Use of Foreign Decisions (3 Marks)

September 20254(c)4 marksNew Scheme

(c)Explain the maxims 'Contemporanea Expositio est optima et fortissinia in lege' and 'Optima legum interpres est consuetude' as a rule of

interpretation. (4 Marks)

May 20234(d)3 marksOld Scheme

(d)Explain the Doctrine of Contemporanea Expositio. (3 Marks)

May 20224(d)3 marksOld Scheme

(d)Does an explanation added to a section widen the ambit of a section? (3 Marks)

November 20223(d)3 marksOld Scheme

(d)Explain the "grammatical" and "logical ” interpretation and state the situations where the courts adopt them while interpreting the Statutes in India. (3 Marks)

May 20233(d)3 marksOld Scheme

(d)When can the Preamble be used as an aid to interpretation of a statute? (3 Marks)

November 20232(c)3 marksOld Scheme

(c)While interpreting the statutes what will be the effect of 'Usage' or 'Customs and

Practices'? (3 Marks)

November 20233(b)4 marksOld Scheme

(b)A clause that begins with the words ‘ notwithstanding anything contained ’ is a clause, that has the effect of making the provision prevail over others. It can operate at four levels. Explain any two of them. (4 Marks)

May 20243(c)4 marksNew Scheme

(c)What are the differences between interpretation and construction in the legal context, and how do these two concepts relate to each other as per Interpretation of Statute? (4 Marks)

May 20244(c)4 marksNew Scheme

(c)Explain the term “Generalia specialibus non derogant”, in connection with Interpretation of Statues. (4 Marks)

September 20244(c)4 marksNew Scheme

(c)(i) What is the purpose of inclusion of ‘definitions’ of certain words and expressions in the body of any statute?

(ii)The definition sometimes includes the words 'mean', 'include', 'means and include' and 'to apply to and include'. What is the meaning of such

words? (4 Marks)

January 20254(c)4 marksNew Scheme

(b)What do you mean by the rule "Ejusdem Generis"? State any three situations when the Rule of "Ejusdem Generis" is not applied by the courts.

September 20253(c)4 marksNew Scheme

(c)Explain and illustrate the terms 'Non-obstante' and 'Without prejudice'.

(4 Marks)

September 20263(c)4 marksNew Scheme

(c)(i) One of the section under the University Act states that appointments to teaching posts must be made through a Selection Committee. Another section provides:

"Notwithstanding anything contained in this Act, the Chancellor may make temporary appointments in cases of emergency."

The Chancellor appoints a professor without constituting a Selection Committee during an academic crisis. The appointment is challenged.

What shall be your interpretation in this regard? (2 Marks)

(ii)A statute provides:

"Without prejudice to the penalty that may be imposed under Section 20, the licence of the defaulter may also be suspended."

A licensee contends that once penalty is imposed, suspension cannot be ordered. Examine the validity of the contention raised by the licensee.

(2 Marks)

September 20264(c)4 marksNew Scheme

(c)The Central Government enacted the Industrial Regulation Act, 1985. One of the provisions of the Act uses the term "processing unit", but the term is not specifically defined in the statute.

For the last 30 years, licensing authorities across the country have consistently treated small packaging units as "processing units" under the Act. Several industries have been granted licenses on this basis. The Legislature has amended the Act multiple times over the years, but has never altered this interpretation. Further, in one case, a High Court also accepted this long-standing practice while deciding a dispute.

Recently, a new regulatory authority has taken a different view and denied license to a packaging unit, arguing that the term "processing unit" should be interpreted strictly as per its dictionary meaning and not according to past administrative practice.

The affected company challenges the decision and contends that longstanding usage and practice should guide the interpretation of the statute.

While interpreting a statute, what is the effect of usage, customs and longstanding practice? Explain with reference to relevant principles and Latin

maxims. (4 Marks)