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

A statute requires a company to send a notice 'by post' to its members, and a notice is posted by the company to Anil at his correct address with the postage prepaid and properly addressed. Anil denies receipt. Under the General Clauses Act, 1897, what is the position regarding service?

Service is deemed made by properly addressing, prepaying and posting the document, and unless the contrary is proved, it is deemed effected when the letter would arrive in the ordinary course of post. Anil's denial of receipt alone does not defeat service.

  1. AService is deemed effected by properly addressing, prepaying and posting the letter, and, unless the contrary is proved, it is deemed effected when the letter would be delivered in the ordinary course of postCorrect
  2. BService is effective only if Anil acknowledges receipt in writing
  3. CService is never effective unless sent by registered post
  4. DService is effective on the date Anil actually reads the notice

Explanation

The General Clauses Act, 1897 provides that where a law authorises or requires a document to be served by post, service is deemed to be effected by properly addressing, prepaying and posting it by registered post, unless a different intention appears; and, unless the contrary is proved, effected at the time the letter would be delivered in the ordinary course of post. Actual acknowledgement is not needed. Registered post is the Act's requirement, but the option stating it is never effective otherwise is too absolute; the option given correctly captures the deeming rule.

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