K.P. Varghese vs The Income Tax Officer,Ernakulam, And ... on 4 September, 1981
7. This Court applied the rule of contemporanea expositio, as the
Court found that the same is a well established rule of the
interpretation of a statute, with reference to the exposition that it
has received from contemporary authorities. However, while doing so,
the Court added words of caution to the effect that such a rule must
give way, where the language of the statute is plain and unambiguous.,
This Court applied the said rule of interpretation by holding that
contemporanea expositio as expounded by administrative authorities, is
a very useful and relevant guide to the interpretation of the
expressions used in a statutory instrument. The words used in a
statutory provision must be understood in the same way, in which they
are usually understood, in ordinary common parlance with respect to
the area in which, the said law is in force or, by the people who
ordinarily deal with them. (Vide: K.P. Varghese v. Income-tax Officer,
Ernakulam & Anr., AIR 1981 SC 1922; Indian Metals and Ferro Alloys
Ltd., Cuttack v. Collector of Central Excise, Bhubaneshwar, AIR 1991
SC 1028; and Y.P. Chawla & Ors. v. M.P. Tiwari & Anr., AIR 1992 SC
1360).