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According to Gray, The process by which a Judge (or indeed any person, lawyer or layman who has occasion to search for the meaning of a statute) constructs from the words of Statute book a meaning which he either believes to be that of a legislature or which he proposes to attribute to it, is called interpretation.
2) What are Types of Statutes 

 There are Several Types of Statutes, Such as Temporary Statute, Perpetual Statute, Consolidating Statute, Codifying Status, Fiscal Statute, Remedial Statute, Penal Statute, Declaratory Statute.  Generally, Statute can be classified with reference to its duration, Method, Object, and extent of Application.

 Statutes can be classified by object, by method, by reference to duration -
 1) Classification by object -  
 a) Declaratory Statutes - 
Declaratory Statute may be defined as an Act to remove doubts existing as to the common law, or the meaning or effect of any Statute such Acts are held to be retrospective. This may happen for, instance, where the courts have been interpreting a particular expression as connoting a specific meaning which in the opinion of the legislature is a wrong notion of the expression. In such case, the legislature may pass a declaratory statute declaring the correct meaning of that expression thereby setting aside the controversy regarding the correct meaning of the expression.Meaning of the expression.Meaning of the expression.
 b) Codifying and consolidating Statutes -
  i) Codifying Statutes - 

A Codifying Statute is a Statute which presents a detail authoritative statement of the rules of law on a given subject. The object is not merely to declare the law upon some particular subject but to declare it in the form of code.
ii) Consolidating Statutes - 
 Consolidating Statute it is a Statute which presents the whole body of statutory law on the subject in complete form repealing the former Statute. It is a Statute which consolidated laws on a particular subject at one place. The main purpose of the consolidating statute is to present the whole body of statutory law on a subject in complete form repealing the former statute.
 c) Remedial statute -
Remedial Statutes are those statutes which provide the remedy for a wrongful act in the form of damages or compensation to the aggrieved party but do not make a wrongdoer liable for any penalty.  This types of Statute are beneficial to the weaker section of the society.  They are directed towards extending a certain benefit to the particular class of society... Therefore they are also called as welfare legislation, for example, industrial dispute act 1947 workmen compensation act 1923, Consumer Protection Act 1986.
d) Enabling statute -  
Enabling statute is a Statute Which enables something to be done. It basically gives the power to do something.

e)  Amending Statute - 
As we all know, Amendment means a change in the existing law. A law is amended when it is in whole or in part permitted to remain and something is added to or taken away from it or it is some way changed or altered to make it more complete or perfect or make it suitable to accomplish the purpose for which it was made.
f) Repealing Statute - 
Repealing Statute is a Statute which repeals Statute which already exists.
g)  Taxing Statute - 
A tax is imposed for the public purpose for raising general revenue of the state. A taxing statute is to be strictly construed.

 h)  Penal Statute - 
A penal statute is one which Punishes certain acts or wrong.  Such Statute may be in the form of a comprehensive criminal code or large number of sections providing punishment for different wrongs for example - Criminal Procedure Code, Indian Penal Code etc. The penalty for disobedience may be in the form of fine, forfeiture of property, imprisonment, death sentence etc.
2) Classification by method - 

 a) Mandatory or Directory Statute - 
i) Mandatory Statute - 
A Mandatory statute may be defined as one whose provisions or requirements, if not complied with, will render the proceedings to which it relates illegal and void.
ii) Directory Statute - 
A directory statute is one where noncompliance will not invalidate the proceedings to which it relates.

This type of statutes are Statutes which are in existence for a known Period such Statutes are called Temporary Statute. Life period of Statute is Fixed.  In simple words this type of Statute, the period of operation is fixed by the statute itself the statute is temporary in nature.

ii) Permanent/ Perpetual Statute - 
When no time period is fixed the statute is permanent in nature.  The dictionary meaning of the term 'perpetual' is forever.  Therefore perpetual Statutes are those which remain in force forever.
These Statutes comes to an end only when they are abolished by the legislature itself by way of enacting another Statute.