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Retrospective Operation & Statutory Presumptions

The time of operation and default assumptions of drafting determine how statutes apply to past events.

1. Prospective vs. Retrospective Operation

A statute is prospective if it applies only to future transactions; it is retrospective if it takes away or impairs vested rights acquired under existing laws, or creates new obligations for past events.

Substantive Law (Rights/Duties) Procedural Law (Machinery/Courts)
Deals with vested rights, offenses, liabilities, and tax burdens. Deals with court processes, rules of evidence, filing limits, and appeals.
Presumed to be strictly prospective in operation unless the legislature explicitly declares it retrospective. Presumed to be retrospective in operation, applying to all pending suits, unless specified otherwise.

2. Key Statutory Presumptions

When construing an Act, courts start with these default legal assumptions, which remain active unless rebutted by express words:

  • Presumption of Constitutionality: The legislature is presumed to know the limits of its powers. Therefore, the court must assume the Act is constitutional and make every effort to uphold it.
  • Presumption Against Ouster of Jurisdiction: Parliament is presumed not to exclude the jurisdiction of civil courts. Any clause excluding court review must be worded with absolute clarity.
  • Presumption Against Retrospective Effect: Substantive statutes are presumed not to alter past transactions or destroy vested rights.
  • Presumption Against Delegation: The legislature is presumed to exercise its own legislative power, prohibiting sub-delegation without express authority.