ABC Limited operates a factory situated near a river. As per a recent Central Act, factories must be located at least 5 kilometers away from any…

CA Intermediate · Corporate and Other Laws · MTP · January 2025
ABC Limited operates a factory situated near a river. As per a recent Central Act, factories must be located at least 5 kilometers away from any river. A dispute arises when an environmental agency claims that ABC Limited's factory is only 4.5 kilometers away from the river, while ABC Limited contends that the distance is 5.3 kilometers as per the road distance measured along the winding path leading to the river. Based on the provisions of the General Clauses Act, 1897, advise whether the contention of ABC Limited is correct.

Suggested Answer and Working Notes:

According to section 11 of the General Clauses Act, 1897, in the measurement of any distance, for the purposes of any Central Act or Regulation made after the commencement of this Act, that distance shall, unless a different intention appears, be measured in a straight line on a horizontal plane. In this case, the distance between ABC Limited's factory and the river must be measured in a straight line on a horizontal plane, not based on the road or path distance. The environmental agency's claim that the factory is only 4.5 kilometers away in a straight line is correct. Since this measurement is less than the required 5 kilometers, the factory does not comply with the law. Therefore, ABC Limited's contention is not correct.

Topics: The General Clauses Act, 1897

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