Interpretation of lawLegal Environment of Business

Prepared By Manu Melwin Joy

Assistant ProfessorIlahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

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Interpretation of lawThe process by which the courts

of law try to ascertain or

understand the meaning of the

legislation through the wording

of enactment is technically

called interpretation. The aim of

interpretation of a statute is to

find out the legislative

intention.

Rules of interpretation

• Literal rule of interpretation.

• Golden rule of interpretation.

• Mischief rule of interpretation.

• Rule of “Ejusdem Generis”.

Literal rule of interpretation

• All rules of interpretations have

one aim in view ie., to ascertain

the legislative intention of the

statue.

• The literal rule of interpretation

gives much importance to the

words and phrases used in the

statute.

Literal rule of interpretation

• According to this rule, words,

phrases and sentences are to be

given their ordinary natural meaning.

• If the language used in the statute is

clear, unambiguous and admits only

meaning, the judges should accept it

and enforce it.

• The judge has to give respect to the

letter of the law. This is the basic rule

of construction.

Golden rule of interpretation• The golden rule of

interpretation propounded by Wensleydale states that, while interpreting statutes, the court has to adopt literal or grammatical interpretations.

• If the words in the statute lead to absurdity, repugnancy or inconsistency, the court can modify the words for the purpose of avoiding such absurdity, repugnancy or inconsistency but no further.

• For example, imagine there may be a sign saying "Do not use lifts in case of fire." Under the literal interpretation of this sign, people must never use the lifts, in case there is a fire. However, this would be an absurd result, as the intention of the person who made the sign is obviously to prevent people from using the lifts only if there is currently a fire nearby.

Mischief rule of interpretation

• The mischief rule of interpretation insists that the court should adopt that construction, which would suppress the mischief and advance the remedy. This is also known as “Rule in Hydon’s case.”

Mischief rule of interpretationFor the interpretation of all statutes, four things are to be considered by the judge– The law existing before the

present act was passed.– The mischief and defect for

which there was no law.– The remedy provided by

the legislature for avoiding the mischief.

– The true reason of mischief.

• Under the Street Offences Act [1959], it was a crime for prostitutes to "loiter or solicit in the street for the purposes of prostitution". The defendants were calling to men in the street from balconies and tapping on windows. They claimed they were not guilty as they were not in the "street." The judge applied the mischief rule to come to the conclusion that they were guilty as the intention of the Act was to cover the mischief of harassment from prostitutes.

Rule of “Ejusdem Generis”

The rule of “Ejusdem Generis” literally means “ of the same kind or species”. The rule says that when there is a general word following particular and specific words, the general word must be confined to the things of the same kind.

Rule of “Ejusdem Generis”

According to Maxwell, the

general word which follows

particular and specific

words takes its meaning

from them and is presumed

to be restricted to the same

genus of those word.

Rule of “Ejusdem Generis”In order to apply this rule, the

following conditions are to be

satisfied

– The section should contain an

enumeration of specific words

– Should constitute a class.

– The class should not be exhausted

by the enumeration and

– A general term should follow that

enumeration.

• Example: if a law refers to automobiles, trucks, tractors, motorcycles and other motor-powered vehicles, "vehicles" would not include airplanes, since the list was of land-based transportation.

• Interpretation of law.