This paper describes a prototype implementation of a Labelled Deduction System for natural language interpretation, where interpretation is taken to be the process of understanding a natural language utterance. The implementation models the process of understanding wh-gap dependencies in questions and relative clauses for a fragment of English. The paper is divided in three main sections. In Section 1, we introduce the basic architecture of the system. Section 2 outlines a prototype implementation of wh-binding and indicates its potential for explanation (...) of linguistic phenomena, and in Section 3 we briefly set the model within a large theoretical perspective, comparing it to other type-logical approaches to natural language analysis. (shrink)