Prof. S. P.

Srivastava
Department of Law and Governance

Doctrine of Strict Construction

Meaning of Strict Construction
 Means each of the words in a statute should be interpreted
by letter and no regard should be had to spirit beyond the
statute.
 It is known as:
A close or narrow reading and interpretation 
of a statute or written document.
 Strict constructionists often look only at the literal meaning
of the words in question, or at their historical meaning at the
time the law was written.
 This is also referred as "strict interpretation" or "original
intent," because a person who follows the doctrine of strict
construction tries to ascertain the intent of the framers at
the time the document was written by considering what the
language they used meant at that time.
Continued.

 In using a strict construction the exact

meaning of the content is considered along
with the purpose and intention of the law
makers while drafting the law.
 Strict construction occurs when ambiguous
language is given its exact and technical
meaning no other equitable consideration or
reasonable implications are made.
Why Strict Construction
 The courts should recognize limitations on their powers in
interpreting statutes. They should recognize that the
legislature is supreme and must be followed to the extent
that it has passed laws which are clear and constitutional.
 The courts should recognize that the legislature has become
the most important lawmaker on major policy questions.
 Certainty in the law enables planning of human affairs in
reliance on the law, and the realization of expectations based
on such planning.
 The purpose of strict construction was to mitigate the rigour
of such harsh sentences and sweeping condemnations
Justification
 Express language is necessary for creation of criminal
offences, no act is to be deemed criminal unless it is
clearly so made by the statute concerned.
 The words setting out the elements of an offences are
to be strictly construed.
 Punishment can be imposed only if the circumstances
of the case falls clearly within the words of the
enactment.
 Statutes dealing with the jurisdiction and procedure
should be strictly construed if they relate to infliction.
State of Jharkhand v. Ambay Cements,

 it was held as follows, ‘(a) Provision of exemption should be

strictly construed. It is not open to Court to ignore the conditions
prescribed in the exemption notification (b) Mandatory rule must
be strictly followed, while substantial compliance might suffice in
a directory rule (c) Whenever the statute prescribed that a
particular act is to be done in a particular manner and also lays
down that failure to comply with the said requirement leads to
severe consequences, such requirement is mandatory (d) It is the
cardinal rule of the interpretation that where a statute provides
that a particular thing should be done, it should be done in the
manner prescribed and not in any other way (e) Where a statute is
penal in character, it must be strictly construed and followed
Strict Construction of penal laws

 This rule is applicable with regard to taxing

and penal statutes.
 The Criminal Statutes must not be enlarged by
implication or intent beyond the fair meaning
of the language used or the meaning that is
reasonably justified by its terms. Criminal
statutes shall not be eligible to encompass
offences other than those clearly described
and provided for in their language.
Continued:
 If two possible constructions can be put upon a penal
provision, the court must lean towards that construction
which exempts the subject from the penalty rather than the
one which imposes penalty - Tolaram Relumal v. State of
Bombay - AIR 1954 SC 496
 Those not covered by express language of the penal statute
should not be roped in by stretching the language of the law.
Sanjay Dutt v. State - 1994 (5)SCC 402.
 Rule of strict construction of a regulatory/penal statute may
not be adhered to, if thereby the plain intention of the
Parliament to combat crimes of special nature would be
defeated. - Balram Kumawat v. UOI, AIR SC 4658
Limitation to SC in Criminal Law
 if there is reasonable doubt or ambiguity, the principle to be
applied in construing a penal act is that such doubt or
ambiguity should be resolved in favour of the person who
would be liable to the penalty. (Isher Das v. State of Punjab
AIR 1972 SC 1295)
 Even with regard to penal provision, any interpretation
which withdraws life and blood of the provision and makes it
ineffective and a dead letter should be averted. - . - Even if
statute is penal, it is the duty of Court to interpret it
consistent with the legislative intent and purpose so as to
suppress mischief and advance the remedy. NEPC Micon
Ltd. v. Magma Leasing Ltd. 96 Comp Cas 822
Continued:
 Procedural delays and technicalities of law should not
be permitted to defeat the object sought to be
achieved by the Act. (State of Madhya Pradesh v. Shri
Ram Singh AIR 2000 SC 575).
 The Court must see that the thing charged as an
offence is within the plain meaning of the words used,
and must not strain the words on any notion that there
has been a slip, that there has been a casus omissus;
 The power to define a crime and ordain its punishment
is vested in the legislature and not in the judicial
department
Leading Cases

 Seksaria Cotton Mills Ltd v State of Bombay

 Alamgir v State of Bihar
 Chinu bhai v State of Bombay
 Sarjoo Prasad v State of Uttar Pradesh
 M.U Joshi v M. V Shimpi
 Rattan Lal v State of Punjab
Strict Construction of Tax Laws

 Tax laws are highly complex, complicated and

beyond understanding of a tax-payer it should
be objective in imposition of tax.
 There is no equity about tax.
 There is no presumption of tax intendment.
 Nothing is to be read in, nothing to be implied.
 If there are two reasonable interpretations of
taxing statutes, the one that favors the
assessee has to be accepted
Principle of Fiscal Laws Construction

 Rowlatt J. in his classic statement in Cape Brandy Syndicate v I.R.C. (1

KB 64, 71): "In a taxing statute one has to look merely at what is clearly
said. There is no room for any intendment. There is no equity about a
tax. There is no presumption as to a tax. Nothing is to be read in,
nothing is to be implied. One can look fairly at the language used." In
the revenue satisfied the court that the case falls strictly within the
provisions of the law, the subject can be taxed. If, on the other hand,
the case is covered within the four corners of the provision of the
taxing statute, no tax can be imposed by inference or by analogy or by
trying to probe into the intention of the legislature and by considering
what was the substance of the matter. Tax relief application is a
mandatory requirement for refund purpose. It is well settled principle that
tax exemptions are strictly against taxpayers. Tax refunds in the nature of
tax exemption, are resolved strictly against the claimant.
Principle of Fiscal Laws Construction

 Bhagwati J. has stated the principle of taxing laws as follows :

 “ In construing fiscal statutes and in determining the liability
of a subject to tax one must have regard to the strict letter of
law. If the revenue satisfies the court that the case falls strictly
within the provisions of the law, the subject can be taxed. If,
on the other hand, the case is not covered within the four
corners of the provisions of the taxing statute, no tax can be
imposed by inference or by analogy or by trying to probe into
the intentions of the legislature and by considering what was
the substance of the matter.“A.V. Fernandez v/s. State if
Kerala, [AIR 1957 SC 657]
 Associated Cement Co. Ltd. Vs.
Commercial Tax Officer AIR 1981 SC 1887
 E.S. Venkataramiah J. of the Supreme Court, speaking for the
majority said
 "Tax, interest and penalty are three different concepts. Tax
becomes payable by an assessee by virtue of the charging
provision in a taxing statute. Penalty ordinarily becomes
payable when it is found that an assessee has wilfully violated
any of the provisions of the taxing statute. Interest is ordinarily
claimed from an assessee who has withheld payment of any tax
payable by him and it is always calculated at the prescribed
rate on the basis of the actual amount of tax withheld and the
extent of delay in paying it. It may not to be wrong to say that
such interest is compensatory in character and not penal."
Manila North Tollways Corporation vs.
Commissioner of Internal Revenue,
 he claimant in this case simultaneously filed both its application
for relief from double taxation and its claim for refund with the
International Tax Affairs Division (ITAD) more than one year from
the payment of its dividends to stockholders. The court noted that
the claimant did not comply clearly with the requirement provided
under Revenue
Memorandum Order (RMO) No. 1-2000 that the availment of tax
treaty relief should be preceded by such application at least 15
days before the payment of dividend. Consequently, the court
denied the claimant’s application for tax refund for failure to
comply with such conditions.
 The Court reiterated its position that an application for tax treaty
relief must be filed prior to any availment of tax treaty provision.
Hansraj Gordhandas v. H.H. Dave

 held that such a notification has to be interpreted in the light of the

words employed by it and not on any other basis. This was so held
in the context of the principle that in a taxing statute, there is no
room for any intendment, that regard must be had to the clear
meaning of the words and that the matter should be governed
wholly by the language of the notification, i.e., by the plain terms
of the exemption. some of the provisions of an exemption
notification may be directory in nature and some are of mandatory
in nature. A distinction between provisions of statute which are of
substantive character and were built in with certain specific
objectives of policy, on the one hand, and those which are merely
procedural and technical in their nature, on the other, must be kept
clearly distinguished.