CA Intermediate · Corporate and Other Laws · The General Clauses Act, 1897
A Central Act empowers the Central Government to make rules by notification after previous publication of the draft. Rules were published in the Official Gazette after draft publication, specifying a date of commencement. The rules contain a clause fixing their effect from a date earlier than the date of publication, which the parent Act does not authorise. Under the General Clauses Act, 1897, how is this treated?
The retrospective clause is invalid to that extent. Rules made under delegated power cannot operate from a date earlier than their making unless the parent Act authorises it, and the General Clauses Act, 1897 does not supply such authority.
- AValid, since rules may always operate retrospectively
- BValid only if laid before Parliament within 30 days
- CValid, since the Gazette publication date is irrelevant
- DInvalid to that extent, because rules cannot have retrospective effect unless the Act authorises itCorrect
Explanation
The Act provides that a power to make rules after previous publication must be exercised subject to draft publication, and that rules, once made, are published in the Official Gazette; however, a rule cannot operate retrospectively to a date before it was made unless the parent Act authorises it. Since the parent Act gives no such power, the retrospective clause is bad to that extent. Laying before Parliament does not cure it.
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