CA Intermediate · Corporate and Other Laws · The General Clauses Act, 1897
A Central Act enacted in 2015 empowers the Central Government to make rules. The rules were framed in 2016 and later the Act was repealed and re-enacted in 2024 with similar provisions, with no express saving of the old rules. A dispute arises on whether the 2016 rules still apply. Under the General Clauses Act, 1897, what is the position?
The 2016 rules continue in force so far as they are not inconsistent with the re-enacted Act, until they are superseded by rules made under the new Act. Repeal and re-enactment does not cause them to lapse, nor do they survive when inconsistent.
- ARules made under the repealed Act continue in force, so far as not inconsistent with the re-enacted provisions, until superseded by rules made under the new ActCorrect
- BRules lapse immediately on repeal and a vacuum is created
- CRules continue permanently even if inconsistent with the new Act
- DRules revive only if the Legislature passes a separate resolution
Explanation
Where an Act is repealed and re-enacted with or without modification, the General Clauses Act, 1897 provides that, unless a different intention appears, appointments, notifications, orders, rules or by-laws made under the repealed Act continue in force, so far as they are not inconsistent with the new provisions, until superseded by those made under the new provisions. So they neither lapse nor continue unconditionally.
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