My Lord, Is the 1997 Amendment to Section 28 of The Indian Contract Act, 1872 clarificatory or declaratory of the law, and hence retrospective?
“What emerges on a reading of the Law Commission Report together with the Statement of Objects and Reasons for the Amendment is that the Amendment does not purport to be either declaratory or clarificatory. It seeks to bring about substantive changes in the law, which are remedial in nature and cannot have retrospective effect. Section 28, being substantive law, operates prospectively as retrospectivity is not clearly made out by its language.”
– Hon’ble Justice R.F. Nariman, Union of India v. M/s. Indusind Bank Ltd. [Civil Appeal No. 9087-9089 of 2016].