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

A Central Act was repealed by a new Act and, on the same day, an offence committed under the old Act was still being investigated. The repealing Act does not contain any contrary intention. Under the General Clauses Act, 1897, what is the effect of the repeal?

Pending investigations and proceedings continue. Unless the repealing Act shows a different intention, the General Clauses Act preserves rights, liabilities and penalties incurred under the repealed Act, and allows related investigations, proceedings and remedies to go on as if no repeal had occurred.

  1. AAny investigation, legal proceeding or remedy in respect of a liability or penalty incurred under the repealed Act may continue as if the repealing Act had not been passedCorrect
  2. BAll pending investigations and proceedings automatically lapse
  3. COnly civil proceedings may continue, criminal proceedings lapse
  4. DThe proceedings continue only if the Central Government issues a specific order

Explanation

Under the General Clauses Act, unless a different intention appears, repeal does not affect any right, liability, penalty or any investigation, legal proceeding or remedy relating to them. Such proceedings may be continued and enforced as if the repealing Act had not been passed. Lapse of proceedings would need an express contrary intention.

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