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CA Intermediate · Corporate and Other Laws · Interpretation of Statutes

An Act repeals an earlier Act and re-enacts its provisions with changes. Under the General Clauses Act, 1897, which of the following is the correct effect of the repeal, unless a different intention appears?

Repeal does not affect any right, liability or penalty already acquired or incurred under the repealed Act, nor any investigation or proceeding relating to it. Under the General Clauses Act, 1897, these are saved unless the new law shows a different intention.

  1. AAll pending proceedings under the repealed Act automatically lapse
  2. BAny penalty incurred under the repealed Act for an offence committed before repeal is wiped out
  3. CThe repeal does not affect any right, liability or penalty already acquired or incurred under the repealed Act, nor any investigation or proceeding in respect of itCorrect
  4. DThe repealed Act is treated as never having existed from the date of its enactment

Explanation

The General Clauses Act saves rights, privileges, obligations, liabilities, penalties and pending proceedings under the repealed enactment unless a contrary intention appears. Hence lapse of proceedings or wiping out of penalties (options A and B) is wrong, and the Act is not treated as never having existed.

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