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CA Intermediate · Corporate and Other Laws · The General Clauses Act, 1897

A Central Act of 2010 was repealed in 2022 by a new Central Act that did not contain any contrary intention. Ravi had incurred a penalty liability under the 2010 Act in 2021, and proceedings were not yet started when the repeal took effect. Under the General Clauses Act, 1897, what is the effect of the repeal on Ravi's liability?

Ravi's liability continues. Under the General Clauses Act, repeal without a contrary intention does not affect any penalty or liability already incurred, and proceedings may be started or continued as if the repealing Act had not been passed. Prior commencement of proceedings is not required.

  1. AThe liability is wiped out because the repealed Act ceases to exist
  2. BThe liability continues, and proceedings may be instituted and continued as if the repealing Act had not been passedCorrect
  3. CThe liability continues only if proceedings had already begun before the repeal
  4. DThe liability is converted to a liability under the new Act at its penalty rates

Explanation

Under the General Clauses Act, unless a different intention appears, repeal does not affect any penalty, liability or right accrued under the repealed enactment. Any investigation, legal proceeding or remedy for such liability may be instituted, continued or enforced as if the repealing Act had not been passed. Thus it is not necessary that proceedings had begun earlier.

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