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

A Central Act passed in 2020 provided that a penalty of Rs 50,000 would apply for a specified default. In 2023 Parliament repealed that Act without a saving clause and re-enacted a different provision with a lower penalty. Ramesh committed the default in 2022 and proceedings are pending. Under the General Clauses Act, 1897, what is the legal position on repeal?

Proceedings against Ramesh can continue. Under the General Clauses Act, repeal of an enactment does not affect any penalty incurred or any pending proceeding under it, unless a contrary intention appears. The repeal therefore does not wipe out liability for the 2022 default.

  1. AProceedings for the 2022 default may continue, since repeal does not affect any penalty incurred or liability accrued under the repealed Act, unless a different intention appearsCorrect
  2. BAll pending proceedings abate automatically on repeal
  3. CRamesh can be charged only under the new lower penalty as a matter of right
  4. DThe repeal revives any earlier law that existed before 2020

Explanation

Under the General Clauses Act, 1897, unless a different intention appears, repeal does not affect any penalty, forfeiture or punishment incurred under the repealed enactment, nor any pending legal proceeding in respect of it. Hence the 2022 default can still be proceeded against. Automatic abatement is wrong because the Act expressly saves such proceedings.

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