The National Infrastructure Authority Act, 2005 (a Central Act enacted after the commencement of the General Clauses Act, 1897) provides that: 'The…
CA Intermediate · Corporate and Other Laws · RTP · May 2026
The National Infrastructure Authority Act, 2005 (a Central Act enacted after the commencement of the General Clauses Act, 1897) provides that: 'The Chairperson of the National Infrastructure Authority shall have the power to grant licences for strategic highway projects.' In 2024, the designation of 'Chairperson' was replaced by 'Managing Director' through an amendment to the parent Act. The powers and functions earlier exercised by the Chairperson were formally vested in the Managing Director. A dispute arose when a company challenged the validity of a licence granted by the Managing Director on the ground that the original provision of the Act referred only to the 'Chairperson' and not to the 'Managing Director.' The company contends that since the Act specifically mentions 'Chairperson,' only that office-holder could exercise the power and not any successor authority. With reference to the provisions of the General Clauses Act, 1897 relating to 'Successors,' examine whether the licence granted by the Managing Director is valid.
Suggested Answer and Working Notes:
According to section 17 of the General Clauses Act, 1897, in any Central Act or Regulation made after the commencement of this Act, it shall be sufficient, for the purpose of indicating the application of a law to every person or number of persons for the time being executing the functions of an office, to mention the official title of the officer at present executing the functions, or that of the officer by whom the functions are commonly executed. According to section 18 of the General Clauses Act, 1897, in any Central Act or Regulation made after the commencement of this Act, it shall be sufficient, for the purpose of indicating the relation of a law to the successors of any functionaries or of corporations having perpetual succession, to express its relation to the functionaries or corporations. In the present case, the National Infrastructure Authority Act, 2005 is a Central Act enacted after the commencement of the General Clauses Act, 1897. The Act originally conferred powers on the "Chairperson." Subsequently, the designation was changed to "Managing Director," and the same powers were vested in the new office. By virtue of provisions of the General Clauses Act, 1897, the reference to "Chairperson" includes the successor office now designated as "Managing Director." Therefore, the licence granted by the Managing Director is legally valid, and the company's contention is untenable.
Topics: The General Clauses Act, 1897
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