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

Under a Central Act, a power is conferred on 'the Chairman' of a statutory board to issue directions. Mr. Desai, who was Chairman, retires and Ms. Iyer succeeds him. Ms. Iyer issues a direction. Under the General Clauses Act, 1897, what is the legal position?

Ms. Iyer's direction is valid. Under the General Clauses Act, a power given to an office-holder may be exercised by whoever holds that office for the time being, so a successor can exercise the power without re-notification or the predecessor's involvement.

  1. AMs. Iyer may exercise the power, as the power conferred on an office includes the person for the time being holding that officeCorrect
  2. BThe direction is invalid because the power was conferred on Mr. Desai personally
  3. CThe power can be exercised only after the Central Government re-notifies it
  4. DThe direction is valid only if Mr. Desai countersigns it

Explanation

The Act provides that powers conferred on a functionary can be exercised by the person for the time being holding the office, unless a contrary intention appears. Hence a successor in office, Ms. Iyer, can exercise the power. Re-notification or countersignature is not required.

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