Explain the impact of the two words "means" and "includes" in a definition, while interpreting such definition.
CA Intermediate · Corporate and Other Laws · MTP · May 2024
Explain the impact of the two words "means" and "includes" in a definition, while interpreting such definition.
Suggested Answer and Working Notes:
Impact of the words “Means” and “Includes” in the definitions- The definition of a word or expression in the definition section may either be restricting of its ordinary meaning or may be extensive of the same. When a word is defined to 'mean' such and such, the definition is ‘prima facie' restrictive and exhaustive, we must restrict the meaning of the word to that given in the definition section. But where the word is defined to ‘include' such and such, the definition is 'prima facie' extensive, here the word defined is not restricted to the meaning assigned to it but has extensive meaning which also includes the meaning assigned to it in the definition section. Example: Definition of Director [section 2 (34) of the Companies Act, 2013]: Director means a director appointed to the board of a company. The word “means” suggests exhaustive definition. Definition of Whole time director [Section 2 (94) of the Companies Act, 2013]: Whole time director includes a director in the whole time employment of the company. The word “includes” suggests extensive definition. Other directors may be included in the category of the whole time director.
Topics: Interpretation of Statutes
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