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

A Central statute states that notice 'shall be given by post' to a shareholder. The company's secretary sends the notice by properly addressed, prepaid, registered post on 5 May. No contrary intention appears. Under the General Clauses Act, 1897, what is presumed regarding service?

Service is deemed effected when the letter would reach the shareholder in the ordinary course of post, unless the contrary is proved. Proper addressing, prepayment and posting create this presumption, so neither the posting date nor actual reading decides it.

  1. AService is effected only when the shareholder actually reads the notice
  2. BService is deemed effected at the time the letter would be delivered in the ordinary course of post, unless the contrary is provedCorrect
  3. CService is effected on 5 May, the date of posting
  4. DService is not valid unless acknowledged in writing

Explanation

Where service by post is authorised, it is deemed effected by properly addressing, prepaying and posting the letter, and, unless the contrary is proved, effected when the letter would be delivered in the ordinary course of post. Service on the posting date is the wrong view.

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