Corporate and Other Laws · The General Clauses Act, 1897

Important Definitions under Section 3 of the General Clauses Act, 1897

Updated 5 October 2026 · Fact-checked

Section 3 of the General Clauses Act, 1897 defines words used in Central Acts and Regulations, unless the subject or context requires otherwise. To answer a question, name the term, state its definition in close to exact words, apply it to the facts, and conclude. Key terms: person, good faith, immovable property, month, year, oath.

Understand Important Definitions under Section 3

Laws use the same words again and again. If every Act explained words like "person" or "month" afresh, statutes would be long and inconsistent. The General Clauses Act, 1897 solves this. Section 3 is its dictionary. It gives one standard meaning for common words.

The opening words of Section 3 matter. The definitions apply in the General Clauses Act itself and in Central Acts and Regulations made after its commencement. They apply unless there is anything repugnant in the subject or context. So if a particular Act defines a word differently, that Act's definition prevails. Many students lose marks by forgetting this condition.

Some definitions are inclusive, using the word "includes". They widen the ordinary meaning. For example, person includes any company or association or body of individuals, whether incorporated or not. So a person is not only a human being. Good faith (Section 3(22)) works differently. It uses the word "deemed": a thing is deemed to be done in good faith where it is in fact done honestly, whether it is done negligently or not. Honesty is the test. Carelessness alone does not defeat good faith under this definition.

Property is split into two. Immovable property includes land, benefits to arise out of land, and things attached to the earth or permanently fastened to anything attached to the earth. Movable property means property of every description except immovable property. So you learn immovable property, and movable is whatever is left.

Time and other terms are also tested. Month means a month reckoned according to the British calendar, and year means a year reckoned according to the British calendar. Oath includes affirmation and declaration for persons allowed by law to affirm or declare instead of swearing.

Central Government (Section 3(8)) means the President for things done or to be done after the Constitution came into force. For that period it also includes: (i) a State Government, in relation to functions entrusted to it under Article 258(1), acting within the authority given under that clause; (ii) for the administration of a Part C State, but only for the period before the Constitution (Seventh Amendment) Act, 1956, the Chief Commissioner, the Lieutenant Governor, the Government of a neighbouring State or other authority, acting within the authority given under Article 239 or Article 243; and (iii) for the administration of a Union territory, the administrator, acting within the authority given under Article 239. For things done before the Constitution, it meant the Governor General or the Governor General in Council, as the case may be.

Key rules to remember

Scope of Section 3: Definitions apply to the Act and to Central Acts and Regulations made after its commencement, unless anything repugnant in the subject or context; Always state this condition. A specific Act's own definition overrides Section 3.
Person: Person includes any company or association or body of individuals, whether incorporated or not; An inclusive definition. It covers companies, firms, societies and clubs, not only individuals.
Good faith (Section 3(22)): Done in good faith = done honestly, whether negligently or not; The test is honesty, not care. Negligence alone does not destroy good faith.
Immovable property: Includes land + benefits to arise out of land + things attached to the earth or permanently fastened to anything attached to the earth; Buildings are an example of things attached to the earth. Things attached to the earth are immovable under this definition. Other Acts, such as the Transfer of Property Act, may define immovable property differently.
Movable property: Movable property = property of every description except immovable property; A residuary definition. Check immovable first.
Month and year: Month = month by the British calendar; Year = year by the British calendar; The Act uses the expression British calendar without further definition.
Oath: Oath includes affirmation and declaration for persons allowed by law to affirm or declare instead of swearing; Affidavit is defined in a similar way to cover affirmation and declaration.
Central Government (Section 3(8)): For things done or to be done after the Constitution: the President, and it includes (i) a State Government for functions entrusted under Article 258(1); (ii) for Part C State administration, only for the period before the Constitution (Seventh Amendment) Act, 1956, the Chief Commissioner, Lieutenant Governor, Government of a neighbouring State or other authority acting under Article 239 or 243; and (iii) the administrator of a Union territory under Article 239, each acting within the authority given. For things done before the Constitution: the Governor General or the Governor General in Council, as the case may be; It does not generally include a State Government. The inclusions apply only in the situations listed, and inclusion (ii) is limited to the period before the 1956 Amendment. The pre-Constitution meaning applies only to things done before the Constitution commenced. For that period the definition also includes the Provincial Government for functions entrusted under section 124(1) of the Government of India Act, 1935.

How to solve Important Definitions under Section 3 questions

Use this method for definition-based questions, whether they are theory or case-based.

1Identify the exact term in the question, for example person, good faith or immovable property.
2State the opening rule: Section 3 applies unless the subject or context is repugnant, and in Central Acts and Regulations made after commencement.
3Write the definition in close to exact words. Note whether it is inclusive ("includes") or residuary ("except").
4Pick out the facts that match or fail the definition, such as honesty of the act, permanent attachment to the earth, or incorporation status.
5Apply the definition to those facts in one or two lines.
6Conclude clearly, and mention that a specific Act's own definition would prevail if it exists.

Quickest way: Keyword matching for MCQs and short answers

When to use it: Use for MCQs and for the first line of any written answer when time is short.

Link each term to one keyword: person = incorporated or not; good faith = honesty, negligence irrelevant; immovable = land, attached, permanently fastened; movable = everything else; month and year = British calendar; oath = includes affirmation and declaration.
In an MCQ, eliminate options that say a person must be a natural human being or that good faith needs due care.
For property, test attachment to the earth first. If it passes, it is immovable. If not, it is movable.
In a written answer, use the format: provision (term and definition), facts (what is given), conclusion (one line). Keep the definition wording accurate, as that earns the step marks.

Common mistakes in Important Definitions under Section 3

Saying a person means only a natural human being.
The everyday meaning of person overrides the statutory meaning in the student's mind.
Fix: Remember the definition is inclusive. It covers any company or association or body of individuals, whether incorporated or not.
Saying good faith requires reasonable care or absence of negligence.
Students mix this with other laws, where due care or caution is part of good faith.
Fix: For Section 3(22) say: honestly done, whether negligently or not. Honesty is the only test.
Treating Section 3 definitions as applying always, without exception.
Students skip the opening words of the section.
Fix: Add the phrase unless there is anything repugnant in the subject or context. Mention that the specific Act's own definition prevails.
Defining movable property independently and missing that it is a residuary term.
Students try to list examples instead of using the statutory wording.
Fix: Write: property of every description except immovable property. Then decide whether the item is immovable.
Treating month as 30 days or year as the financial year.
Students rely on everyday assumptions.
Fix: Month and year mean those reckoned by the British calendar. A financial year is a separate defined term, starting on 1st April.
Writing that oath means only swearing on a holy book.
Students rely on the ordinary meaning of the word.
Fix: State that oath includes affirmation and declaration for persons allowed by law to affirm or declare instead of swearing.

Worked examples

Example 1

An unregistered club formed by 25 members enters into a contract with a caterer for an annual function. The caterer argues that the club is not a "person" under a Central Act made after 1897 and so cannot be a party. Examine with reference to the General Clauses Act, 1897.

Show the solution

Provision: Section 3 defines person to include any company or association or body of individuals, whether incorporated or not. The definition applies to Central Acts made after commencement, unless the subject or context is repugnant, or the Act defines the word differently.
Facts: The club is an association or body of individuals. It is not incorporated.
Application: The definition expressly covers bodies whether incorporated or not. Lack of incorporation does not take the club outside it.
Condition: This holds unless the specific Act gives its own meaning of person or the context requires otherwise. Nothing of that kind is mentioned in the facts.

Answer: The caterer's argument fails. Under Section 3, an association or body of individuals, incorporated or not, is a person, so the club is a person for the Act, subject to any contrary definition or context in that Act.

Example 2

A public officer, empowered to seize goods under a Central Act, seizes a trader's stock in the honest belief that it was liable to seizure. He did not check the records properly and was careless. The Act protects acts done in good faith. Can he claim the protection?

Show the solution

Provision: Section 3(22) says a thing is deemed done in good faith where it is in fact done honestly, whether it is done negligently or not.
Facts: The officer acted in honest belief. He was careless in not checking the records.
Application: Negligence does not take an act out of good faith under this definition. The test is honesty, and honesty is present.
Condition: If the Act in question defines good faith differently, or if the context shows a stricter meaning, that would prevail. No such definition is given in the facts.

Answer: Yes. Since the officer acted honestly, his act is in good faith under Section 3(22), even though he was careless. He can claim the statutory protection, subject to any contrary definition or context in the specific Act.

Exam tips

Quote the definition almost word for word. Examiners award marks for correct phrasing of person, good faith and immovable property.
Always add the repugnancy condition, in one line. It shows you know the limits of Section 3.
For case-based questions, use the provision-facts-conclusion format. Do not write more than the facts need.
Expect MCQs that test small traps: negligence and good faith, incorporated or not for person, British calendar for month, and affirmation within oath.
Revise Section 3 as a one-page list of term and keyword. It is a high-recall topic and well suited to last-week revision.

Practice questions from The General Clauses Act, 1897

Important Definitions under Section 3 in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ExecutiveGeneral Clauses Act, 1897

Important Definitions under Section 3: frequently asked questions

What is the definition of person under the General Clauses Act, 1897?

Person includes any company or association or body of individuals, whether incorporated or not. The word "includes" makes it inclusive, so it covers more than human beings. A specific Act may define person differently, and then that definition applies.

What is good faith under Section 3(22)?

A thing is deemed to be done in good faith where it is in fact done honestly, whether it is done negligently or not. The test is honesty. Negligence alone does not make an act one not in good faith.

What is the difference between movable and immovable property under this Act?

Immovable property includes land, benefits to arise out of land, and things attached to the earth or permanently fastened to anything attached to the earth. Movable property is property of every description except immovable property. So you first test whether the item is immovable, and if not, it is movable.

Do Section 3 definitions apply to every Act?

They apply to the General Clauses Act and to Central Acts and Regulations made after its commencement. They apply unless there is anything repugnant in the subject or context. If an Act has its own definition, that definition prevails.