# Internal Aids to Interpretation — Definitional Clauses

## Two Functions of a Definition Clause

1. Acts as a key to proper interpretation — avoids ambiguities.

2. Shortens language and avoids repetition.

## General Rules

Where a statute defines a word, that meaning alone must be given to it.
The Court cannot ignore the statutory definition and speculate on the true meaning, unless there is something repugnant in the context.
A defined word bears the same meaning throughout the Act, unless doing so creates absurdity in the subject/context.
Where the definition itself is ambiguous, it must be construed in light of the purpose of the Act and the ordinary connotation of the word.

## Types of Definitions

### (i) Restrictive Definitions — 'means'

When defined to 'mean' something, the definition is prima facie restrictive and exhaustive.
The meaning of the word is restricted to what is given in the definition clause.
Example: Section 2(20) of the Companies Act, 2013 — 'Company means a company incorporated under this Act or under any previous company law.' No other entity qualifies as a 'Company'.

### (ii) Extensive/Inclusive Definitions — 'includes'

When defined to 'include' something, the definition is prima facie extensive.
Its meaning includes what is given AND can include additional things beyond what is listed.
Example: Section 2(30) of the Companies Act, 2013 — 'Debenture includes debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not.'

### Other Inclusive Formulations

'Is deemed to include' → inclusive definition.
'To apply and to include' → inclusive definition.

## Quick Reference Table

Formulation	Type	Effect
'means'	Restrictive/exhaustive	Only what is listed
'includes'	Extensive	Listed items + others
'is deemed to include'	Inclusive	Listed items + others
'to apply and to include'	Inclusive	Listed items + others
'means and includes'	Restrictive	Treated as exhaustive

### (iii) Ambiguous Definitions

Where the definition's language itself is ambiguous, construe it in light of:

the purpose of the Act, and
the ordinary connotation of the word defined.

Worked example

### Example 1

Restrictive — 'Company': Section 2(20) of the Companies Act, 2013 defines 'Company' to MEAN a company incorporated under this Act or any previous company law. A partnership firm or LLP — though commercial entities — are NOT 'companies' under the Act.

### Example 2

Inclusive — 'Debenture': Section 2(30) of the Companies Act, 2013 states 'debenture INCLUDES debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not.' A new financial instrument evidencing debt, not specifically named, may still fall within 'debenture' because the definition is inclusive.

⚠️ Common exam mistakes

Treating an inclusive ('includes') definition as exhaustive — it is meant to extend the natural meaning, not limit it.
Treating a restrictive ('means') definition as merely illustrative — only listed items qualify.
Giving different meanings to the same defined word in different sections of the same Act — the meaning must remain consistent unless context creates absurdity.
Ignoring the statutory definition and applying the dictionary meaning when the Act has provided its own meaning.

Bare-Act text Section 2(20) and Section 2(30) · Companies Act, 2013 · click to expand

Section 2(20): 'Company' means a company incorporated under this Act or under any previous company law. Section 2(30): 'Debenture' includes debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not.

Now that you've read this — what's next?

Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.

🔥 Drill 5 Qs on this → ✍️ Adaptive practice →