Explain and illustrate the terms 'Non-obstante' and 'Without prejudice'.

CA Intermediate · Corporate and Other Laws · PYQS · September 2025
Explain and illustrate the terms 'Non-obstante' and 'Without prejudice'.

Suggested Answer and Working Notes:

Non-obstante: A clause that begins with the words “notwithstanding anything contained" is called a non-obstante clause. Unlike the “subject to" clause, the notwithstanding clause has the effect of making the provision prevail over others. When this term is used then the clause will prevail over the other provision(s) mentioned therein. Illustration: A notwithstanding clause can operate at four levels in various Acts as tabulated under. S. No. Clause Effect 1 Notwithstanding anything contained in another section or sub- section of that statute. The clause will override such other section(s)/ sub-section(s). 2 Notwithstanding anything contained in a statute. The clause will override the entire enactment. 3 Notwithstanding anything contained in specific section(s) or sub-section(s) or all the provisions contained in another statute. The clause will prevail over the other enactment. 4 Notwithstanding anything contained in any other law for the time being in force. The clause will override all other laws. Without prejudice: When certain particular provisions follow general provisions and when it is stated that the particular provisions are without prejudice to those general provisions the particular provisions would not restrict or circumscribe the operation and generality of the preceding general provisions. In other words, the particular provisions shall operate in addition to and not in derogation of the general provisions. Illustration: Section 4(3) of the Companies Act, 2013, "Without prejudice to the provisions of sub-section (2), a company shall not be registered with a name which contains......". This implies that while registering (and deciding) the name of the company [as per section 4(3)], provisions of section 4(2) shall also be operative.

Topics: Interpretation of Statutes

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