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CMA Intermediate · Business Laws and Ethics · Introduction to Law and Legal System in India

Section 5 of an Act gives a Board power to 'grant exemptions in public interest', while Section 9 of the same Act says no exemption may be granted to any entity with unpaid dues. Reading the two together, a court gives effect to both by treating Section 9 as a limit on the exercise of Section 5 power. Which principle of interpretation does this reflect?

This reflects the rule of harmonious construction. Where two provisions of the same Act seem to conflict, the court reads them together so that both operate, here by treating Section 9 as a restriction on Section 5, rather than letting one provision defeat or make the other useless.

  1. ARule of harmonious constructionCorrect
  2. BRule of beneficial construction
  3. CDoctrine of pith and substance
  4. DRule of strict construction of penal statutes

Explanation

Harmonious construction requires that apparently conflicting provisions of the same enactment be read so that each is given effect and neither is made redundant. Here Section 9 restricts Section 5. Beneficial construction favours the remedy of welfare laws, and pith and substance concerns legislative competence, not conflicts inside one Act.

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