Explain, as external aids to the interpretation of statutes: (i) Historical Setting; (ii) Use of Foreign Decisions

CA Intermediate · Corporate and Other Laws · MTP · September 2026
Explain, as external aids to the interpretation of statutes: (i) Historical Setting; (ii) Use of Foreign Decisions

Suggested Answer and Working Notes:

(i) Historical Setting: The history of the external circumstances leading to an enactment is significant in construing it. Courts may draw on external or historical facts including Parliamentary history, ancient statutes, and contemporary authentic writings to understand the subject-matter, scope and object of the enactment. (ii) Use of Foreign Decisions: Decisions of foreign courts following a similar system of jurisprudence, given on laws similar to India's own, may legitimately aid construction of Indian statutes. However, primary importance is always given to the language of the Indian statute, and reference to foreign decisions becomes unnecessary where adequate guidance is available from Indian decisions.

Topics: Interpretation of Statutes

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