At the time of interpreting a Statute what will be the effect of 'Usage' or 'customs and Practices'?

CA Intermediate · Corporate and Other Laws · RTP · January 2025
At the time of interpreting a Statute what will be the effect of 'Usage' or 'customs and Practices'?

Suggested Answer and Working Notes:

Effect of usage: Usage or practice developed under the statute is indicative of the meaning recognized to its words by contemporary opinion. A uniform notorious practice continued under an old statute and inaction of the Legislature to amend the same are important factors to show that the practice so followed was based on correct understanding of the law. When the usage or practice receives judicial or legislative approval it gains additional weight. In this connection, we have to bear in mind two Latin maxims: (i) 'Optima Legum interpres est consuetude' (the custom is the best interpreter of the law); and (ii) 'Contemporanea Expositio est optima et fortissinia in lege' (the best way to interpret a document is to read it as it would have been read when made). Therefore, the best interpretation/construction of a statute or any other document is that which has been made by the contemporary authority. Simply stated, old statutes and documents should be interpreted as they would have been at the time when they were enacted/written. Contemporary official statements throwing light on the construction of a statute and statutory instruments made under it have been used as contemporanea expositio to interpret not only ancient but even recent statutes in India.

Topics: Interpretation of Statutes

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