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

Ravi Textiles Ltd. was fined under a Central Act for an offence. The Act was later repealed and re-enacted with modifications, and the repealing Act is silent about pending proceedings against Ravi Textiles for the offence committed earlier. Under the General Clauses Act, 1897, what is the legal position?

Repeal does not affect the penalty incurred or any investigation or proceeding for the earlier offence. Under the General Clauses Act, unless a contrary intention appears, these may continue and the penalty may be imposed as if the repealing Act had not been passed, even without an express saving clause.

  1. AAll proceedings for the earlier offence automatically lapse on repeal
  2. BThe repeal does not affect any penalty incurred or any investigation or proceeding in respect of it, which may continue as if the repealing Act had not been passedCorrect
  3. CProceedings can continue only if the repealing Act expressly saves them
  4. DProceedings continue only under the new Act and its new penalty

Explanation

The General Clauses Act provides that, unless a different intention appears, repeal does not affect any penalty, forfeiture or punishment incurred, nor any investigation or legal proceeding in respect of it. Such proceedings may be continued and the penalty imposed as if the repealing Act had not been passed. So express saving is not required, and lapse does not occur.

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