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

A Central Act passed in 2020 gave the Central Government power to make rules. The Act was later repealed and re-enacted with modifications in 2024, and the new Act contains no provision continuing earlier rules. Rules issued in 2021 under the old Act deal with matters also covered by the new Act and are not inconsistent with it. Under the General Clauses Act, 1897, what is the position of the 2021 rules?

The 2021 rules continue in force so far as they are not inconsistent with the new Act, until they are superseded by rules made under it. The General Clauses Act, 1897 saves rules and orders issued under a repealed enactment that is re-enacted, absent a contrary intention.

  1. AThey lapse automatically on repeal of the old Act
  2. BThey continue in force, so far as not inconsistent with the new Act, until superseded by rules under the new ActCorrect
  3. CThey continue in force permanently, even if inconsistent with the new Act
  4. DThey continue only for six months after the repeal

Explanation

Where an Act is repealed and re-enacted, with no contrary intention, appointments made, orders, schemes, rules and bye-laws issued under the repealed Act continue in force, so far as not inconsistent with the new provisions, until superseded. Automatic lapse is wrong, and there is no six-month limit. Inconsistent rules do not survive.

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