Skip to main content

Textual Interpretation Of Statute Should Match With Contextual Interpretation and the statute must be read as a whole

In RENAISSANCE HOTEL HOLDINGS INC. Vs B. VIJAYA SAI AND OTHERS, the Supreme Court while elaborating on the issue of infringement of trademark and passing off issues and disagreeing with the judgment of the Karnataka High Court observed that there are  two important principles of interpretation. The first one being of textual and contextual interpretation. 

Referring to the judgment in Reserve Bank of India v. Peerless General Finance and Investment Co. Ltd. and Others, the Court said that one  may well say if the text is the texture, context is  what gives the colour. Neither can be ignored. Both  are important. It is thus trite law that while interpreting the provisions of a statute, it is necessary that the textual interpretation should be matched with the contextual one. The Act must be looked at as a whole and it must be discovered what each section, each clause, each phrase and each word is meant and designed to say as to fit into the scheme of the entire Act. No part of a statute and no word of a statute can be construed in isolation. Statutes have to be construed so that every word has a place and everything is in its place. As already discussed hereinabove, the said Act has been enacted by the legislature taking into consideration the increased globalization of trade and industry, the need to encourage investment flows and transfer of technology, and the need for simplification and harmonization of trade mark management systems. One of the purposes for which the said Act has been enacted is prohibiting the use of someone else’s trade mark as a part of the corporate name or the name of business concern. If the entire scheme of the Act is construed as a whole, it provides for the rights conferred by registration and the right to sue for infringement of the registered trade mark by its proprietor. The legislative scheme as enacted under the said statute elaborately provides for the eventualities in which a proprietor of the registered trade mark can bring an action for infringement of the trade mark and the limits on effect of the registered trade mark. By picking up a part of the provisions in sub­section (4) of Section 29 of the said Act and a part of the provision in sub­section (1) of Section 30 of the said Act and giving it a textual meaning without considering the context in which the said provisions have to be construed, in our view, would not be permissible.

The Court also held that a part of a section cannot be read in isolation. As laid down in the case of Balasinor Nagrik Cooperative Bank Ltd. v. Babubhai Shankerlal Pandya and Others and in Kalawatibai v. Soiryabai, it is an elementary rule that construction of a  section is to be made of all parts together. It is not permissible to omit any part of it. For, the principle that the statute must be read as a whole is equally applicable to different parts of the same section.


Comments

Post a Comment

Most viewed this month

Right of pre-emption under West Bengal Land Reform Act

In Rabindra Nath Kundu & Anr vs Sudhir Hira, Bijoy Krishna Hira being the owner in the suit plot, gifted to Santosh Kumar Hira demarcated 11 decimals of land vide deed of gift dated 27.4.2004 and the latter sold 9 decimals out of 11 decimals of land to Sudhir Hira the preemptor/opposite party no. 1 and well demarcated 1.65 decimals of land in the said plot along with several other plots were sold, transferred and conveyed to the preemptees/petitioners herein by a registered deed of sale dated 10.8.2010, the subject matter of preemption. It is argued on behalf of the preemptees that  the present opposite party no. 1/preemptor Sudhir Hira has no relationship of co-sharership with Santosh Kumar Hira opposite party no. 2 as the demarcated portion of land has been purchased. It is settled principle of law that partial preemption is not permissible and this was what the view adopted by this Hon'ble High Court is Surendra Vs. Abhimannu reported in (1980) 1 Cal LJ 135 whe...
Post a Comment
Read more

Merits and the terms of contract are irrelevant for invoking of the bank guarantees

In Sabarkantha Annuity Pvt. Ltd. Vs. NHAI and Ors, the Petitioner filed before the Delhi High Court  petition under Section 9 of the Arbitration and Conciliation (Amendment) Act, 2015 with a prayer that, Respondents be restrained from acting upon the letter dated 15th September, 2017 or from invoking the Bid securities of the Petitioner to the tune of Rs. 10.93 Crores and also restraining the banks from honouring the invocation of said bank guarantees on behalf of Respondent No. 1 acting in terms of letter dated 3rd November, 2007. Petitioner has relied upon Clauses Nos. 9.1.1, 9.1.2 and 4.3 of the agreement dated 28th April, 2017 entered into between the parties to say the claim for damages since is not a claim for a sum presently due and payable and the respondent would be entitled to damages only on proof of loss, per Clause 4.3 of the agreement and hence is not entitle to the entire sum of bid security.  The Court found that Clause No. 9.1.2 speaks of an exclusiv...
Post a Comment
Read more

Supreme Court clarified on how to determine if an allegation of fraud falls under “Fraud Exception” to Arbitrability

In AVITEL POST STUDIOZ LIMITED & ORS. vs HSBC PI HOLDINGS (MAURITIUS) LIMITED, the Supreme Court was hearing an appeal from the interlocutory judgment and order passed in the appeal under section 9 of the Arbitration and Conciliation Act, 1996 by the Bombay High Court in a dispute between HSBC and Avitel India. HSBC had alleged that the Appellants had committed fraud by siphoning off the funds provided by them. As the agreement entered into by HSBC and the Appellants contained arbitration clause, HSBC approached the Singapore Arbitration Centre and the arbitration committee so formed executed award in favour of HSBC who filed application before the Bombay High Court for execution of the award. The Appellants contended objected to the award on various grounds and further argued that as fraud has been alleged, the dispute cannot be arbitrated.  The Supreme Court has held that “serious allegations of fraud” as a ground for exemption from arbitral proceedings arise only if either o...
Post a Comment
Read more