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CSEET · Business Laws and Management · Introduction to Law

A Central Act is repealed by a later Act and the later Act contains no savings clause. Under the General Clauses Act, 1897, which result follows for a penalty already incurred under the repealed Act before repeal?

The penalty remains enforceable unless the repealing Act shows a different intention. The General Clauses Act, 1897 provides that repeal does not affect any liability, penalty or punishment already incurred, nor any investigation or proceeding for it, even without an express savings clause.

  1. AThe penalty stands extinguished automatically
  2. BThe penalty remains enforceable unless a different intention appears in the repealing ActCorrect
  3. CThe penalty can be enforced only if Parliament re-enacts it
  4. DThe penalty becomes a civil debt only

Explanation

Under the Act's repeal provisions, unless a different intention appears, repeal does not affect any right, privilege, obligation, liability, penalty or punishment already acquired or incurred, nor any pending proceeding. So the penalty survives. Automatic extinction is the common mistaken belief.

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