ABC Limited operates a factory near a river. A recent Central Act mandates that factories must be located at least 3 kilometers away from any river.…

CA Intermediate · Corporate and Other Laws · MTP · May 2025
ABC Limited operates a factory near a river. A recent Central Act mandates that factories must be located at least 3 kilometers away from any river. An environmental agency claims that ABC Limited's factory is only 2.5 kilometers away from the river, while ABC Limited argues that the distance is 4 kilometers, based on the road distance along a winding path leading to the river. As per the General Clauses Act, 1897, how should the distance between ABC Limited's factory and the river be measured to determine compliance with the Central Act?
(A) The distance should be measured along the shortest possible straight line (horizontal plane) between the factory and the river.
(B) The distance should be measured along the road/ path actually travelled, as argued by ABC Limited.
(C) The environmental agency's estimate of 2.5 kilometres should be automatically accepted since it favors environmental protection.
(D) The distance should be measured based on any reasonable method, as long as it justifies the company's compliance.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

The distance should be measured along the shortest possible straight line (horizontal plane) between the factory and the river.

Topics: The General Clauses Act, 1897

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