Step 1: Understanding the Question:
The question asks for the specific landmark case in which the Supreme Court of India discussed the interpretation of ambiguous words in penal statutes to protect innocent, lay citizens from legal traps.
Step 2: Key Principles and Statutory Provisions:
This relates to the "Interpretation of Penal Statutes".
While the general rule is that penal statutes must be construed strictly, courts must avoid absurd results that turn ambiguous laws into "traps" for innocent people.
Step 3: Detailed Explanation and Analysis:
• In The Seksaria Cotton Mills Ltd v. The State of Bombay (1953 SCR 325), the Supreme Court analyzed how penal laws should be read when the language is ambiguous.
• The Court noted that while crimes must be clearly defined, if a penal provision uses ambiguous words, the court must adopt a sensible, fair interpretation.
It should not stretch the language to create a crime where none was clearly intended.
• The Court observed that laws should not become traps for honest, unlearned, and unwary men who act in good faith.
The law must be clear enough so that a common citizen can know what is prohibited.
Step 4: Final Answer:
The landmark observation was made in the Seksaria Cotton Mills case, making Option A the correct answer.