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Microlesson · 5-min read

'Means' vs 'Includes' in Definitions

# Definitions in an Act: 'Means' vs 'Includes'

## Where are Definitions Found?

Every Act contains its own definitions:

  • Usually in Section 2 of the Act
  • Sometimes in Section 3 or other initial sections
  • These definitions apply only for the purpose of that particular Act

### Gap-Filling Role of General Clauses Act

If a word is NOT defined in a particular Act, its meaning may be taken from the General Clauses Act, 1897.

## The Critical Distinction: 'Means' vs 'Includes'

### Type 1: Definitions using 'MEANS'

  • These are EXHAUSTIVE definitions
  • They exactly define the term
  • Nothing outside the definition can be added
  • The scope is closed

#### Example: 'Company' [Section 2(20), Companies Act, 2013]

> "Company means a company incorporated under this Act or under any previous company law."

Implication: Only entities incorporated under the Companies Act 2013 or earlier company laws are "companies". A partnership or LLP cannot be a "company".

### Type 2: Definitions using 'INCLUDES'

  • These are INCLUSIVE (non-exhaustive) definitions
  • They extend the natural meaning of the word
  • The word retains its general meaning PLUS what is added
  • The scope is open-ended

#### Example: 'Debenture' [Section 2(30), 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."

Implication: Debenture means what it ordinarily means PLUS debenture stock, bonds, etc. Even something not listed but evidencing a debt could be a debenture.

## Comparative Table

Feature'Means''Includes'
NatureExhaustiveInclusive / Extensive
ScopeClosedOpen-ended
EffectRestricts meaningExpands meaning
Outside itemsExcludedMay still qualify if they fit general meaning

## Hybrid: 'Means and Includes'

Sometimes definitions use "means and includes" — these are treated as exhaustive but explicitly enumerating included items.

Worked example

### Example 1

Q: Section 2(20) of the Companies Act defines 'company' using the word 'means'. Can an LLP be treated as a 'company' for the purpose of the Companies Act, 2013?

A: No. Since the definition uses 'means', it is exhaustive. Only entities incorporated under the Companies Act, 2013 or under any previous company law qualify. An LLP is incorporated under the LLP Act and is therefore excluded.

### Example 2

Q: The definition of 'debenture' in Section 2(30) of the Companies Act uses 'includes'. A new financial instrument evidencing a debt of the company is created. Could it be treated as a debenture?

A: Yes. Since the definition uses 'includes', it is inclusive. The instrument can qualify as a debenture if it fits the general/extended meaning, even though it is not specifically listed in the definition.

⚠️ Common exam mistakes

  • Treating 'includes' definitions as exhaustive lists
  • Adding items to a 'means' definition that aren't listed
  • Ignoring the distinction and treating both types the same way
  • Forgetting that the General Clauses Act steps in when a word is not defined in the particular Act
Reference:
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