CA Intermediate · Corporate and Other Laws · The General Clauses Act, 1897
A Central Act of 2005 empowers the Central Government to make rules. The Act is repealed in 2020 and re-enacted with modifications. Under the repealed Act, a notification was issued in 2015 and a penalty proceeding against Ravi Traders for an offence committed in 2018 is pending. The new Act is silent on savings. Under the General Clauses Act, 1897, what is the effect of the repeal?
The pending proceeding against Ravi Traders continues, and the 2015 notification stays in force to the extent it is consistent with the new Act. Under the General Clauses Act, repeal does not affect penalties incurred or proceedings, and re-enactment preserves earlier rules and notifications unless a contrary intention appears.
- AThe pending proceeding continues as if the repeal had not happened, and the 2015 notification continues in force so far as consistent with the new Act, unless a contrary intention appearsCorrect
- BAll pending proceedings stop immediately and Ravi Traders cannot be punished
- CThe notification lapses on repeal, but pending proceedings continue
- DOnly criminal proceedings, not civil ones, may continue after repeal
Explanation
Where an Act is repealed and re-enacted, the General Clauses Act provides that rules and notifications made under the repealed Act continue in force so far as not inconsistent with the new provisions, until superseded. Also, repeal does not affect any penalty incurred or any proceeding for it, unless a different intention appears. The view that proceedings stop or the notification lapses ignores these savings.
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