INTRODUCTION
Act, Bill, Ordinance, Rules, and Regulations; at first glance, these terms appear to be synonymous, but they are not. Understanding the distinction between these terms is simple and clear. The first thing you need to know is who governs India. The answer is central government, also known as union government. As our bodies require various organs to function properly, similarly the government also requires three organs to function properly, namely :
- Legislature
- Executive
- Judiciary
The legislature consists of the president, Lok Sabha, and Rajya Sabha. It’s primary function is to enact laws. It serves as the foundation for the other two organs, the executive and the judiciary. It is also sometimes given first place among the three organs because there can be no implementation or application of laws unless and until laws are enacted. The executive organ includes the president, vice president, prime minister, and his cabinet. It is the organ in charge of putting the legislature’s laws into action and enforcing the state’s will. It is the administrative head of government. The final one is the Judiciary, which includes the Supreme Court, High Court, and Subordinate Courts. The judiciary is the branch of government that interprets the law, settle disputes, and administers justice to all citizens. It is regarded as the watchdog of democracy and the guardian of the Constitution[1].
We frequently hear words and terms like a bill being presented, a law being enacted, an ordinance being passed, and an Act coming into force. So, what’s the difference? To learn more, read on.
WHAT ARE ACTS, BILLS, ORDINANCES, RULES AND REGULATIONS?
Acts, bills, ordinances, rules, and regulations are frequently confused as being similar. However, these terms have distinct meanings despite their connection. According to Article 13(3)(a)[2] of the Indian Constitution, “law” includes any Ordinance, order, bye-law, rule, regulation, notification, custom, or usage having the force of law in the territory of India. Furthermore, we will be focusing on the five terms- Acts, bills, ordinances, Rules, Regulations- and how they differ from one another.
BILL :
A bill is proposed legislation under the consideration by a legislature. In simplified terms, it is a drafted proposed law that is presented to Parliament for discussion. A Bill can be introduced by Parliament or state governments, or it can be proposed by a member of Parliament. Following discussion in the Lower House, the Bill is sent to the Upper House for approval. When the bill is passed by the Upper House, it is sent to the President for his assent. After being passed by Parliament and signed by the President, a bill becomes an Act. However, not all bills become acts; some bills lapse and need be reintroduced[3].
Example : Surrogacy (Regulation) Bill, 2020, which prohibits commercial surrogacy but allows altruistic surrogacy, received presidential assent on December 25, 2021, and becomes the Surrogacy (Regulation) Act, 2021.
ACT :
When a bill is passed by the legislature, it is sent to the President or the Governor, depending on whether it is center or state law, for approval. After receiving Presidential assent, it becomes an Act. An Act is a piece of legislation created by the legislature, such as Parliament or the State Legislative Assembly. It is the country’s codified law on a specific topic. It contains definitions, its applicability, the provisions that govern the Act, fines and penalties, and remedy provisions. Because an act is a public document, any citizen of the country has access to it.
Example : The Companies Act, 2013, The Competition Act, 2002, The Indian Contract Act ,1872
ORDINANCE :
A session of the Indian Parliament is the period during which a House meets almost every day, without interruption, to conduct business. A year is typically divided into three sessions. A session is made up of many meetings. The process of summoning all members of Parliament to a meeting is known as Summoning of Parliament. The President summons Parliament.
The sessions are as follows:
- Budget session (February to May)
- Monsoon session (July to September)
- Winter session (November to December)
The standard rule is that there cannot be a gap of more than 6 months between any two sessions of parliament. Any bill, or act in India must be passed only during these sessions. However, if a law needs to be passed urgently and the parliament is not in session, the ordinance process is used. Therefore, Article 123 of the Indian Constitution grants the President “Ordinance Making Power,” whereas Article 213 of the Indian Constitution grants the Governor “Ordinance Making Power.” An ordinance can only exist if it is approved by Parliament within six weeks of its introduction. Parliament is required to convene within six weeks of the Ordinance being introduced. An ordinance is valid for 6 months and 6 weeks. It’s legality is defined as being equal to the Act[4].
Example : The Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015, The Motor Vehicles (Amendment) Ordinance, 2015
RULES :
As aforementioned, an act contains a broad structure of law. However, it is difficult for the law to be all-encompassing and fulfilling in all of its complexities. This is where ‘Rules’ come into play. Rules are the recommended guidelines for proper conduct that can be adjusted as needed. It is not always necessary for the act to contain every minute detail of the subject matter; if this is done, the act will be lengthy and tedious. As a result, rules are created to supplement the act. The nature of rules is secondary to their parent act. So, the rules cannot go beyond the parent Act, and if a conflict arises between the provisions of an Act and the rules, the provisions of the Act will take precedence.
Example : Section 15 of the Industrial Employment (Standing Orders) Act of 1946 empowers the appropriate government to make rules to carry out the act’s provisions. As a result, the central government creates the Industrial Employment (Standing Orders) Central Rules[5] to ensure that the act is properly enforced.
REGULATIONS :
Regulations are made through delegated legislation. It occurs when the executive authority is given the authority to make laws in order to implement and administer the requirements of the legislation. Subordinate legislation is another term for this. Regulations are enacted to ensure that the act is properly implemented. They are not passed before the Houses of Parliament, but must be published in the official Gazette in order to be legally binding. The main difference between rules and regulations is that regulations are legally enforceable, whereas rules are not. Regulations are implemented through regulatory bodies. Some regulatory authorities include SEBI, RBI, IRDA, CCI and others.
Example : The Competition Act of 2002 empowers the Commission to issue regulations to carry out the Act’s objectives. The Competition Commission of India exercised this power by enacting the Competition Commission of India (Manner of Recovery of Monetary Penalty) Regulations, 2011.
CONCLUSION :
The terms Act, Bill, Ordinance, Rules, and Regulations are all intertwined. There has always been some confusion about the meaning of these terms, because many people use them interchangeably. In simple terms, a bill is a precursor to an act that becomes one after the President’s assent, whereas an ordinance is a temporary law that is only valid for six months. The supreme law is the Act, and rules and regulations are its subordinates. Rules are an additional source of guidelines for proper conduct. Regulations are established by statutory/executive bodies and are regarded as standard laws that must be followed. Thus, laws can be acts, ordinances, rules, or regulations.
[1] Singh, T. (1996). Principle of Separation of Powers and Concentration of Authority. Lucknow: JTRI Journal.
[2] Chhallani, A. (2020, July 20). Importance and Requirement of Analysis on Article 13 of the Constitution. Jus Dicere.https://www.jusdicere.in/importance-and-requirement-of-analysis-on-article-13-of-the-constitution/
[3] Jain, D. (2019). Law-Making by and for the People: A Case for Pre-legislative Processes in India. Statute Law Review, 41(2), 189–206. https://doi.org/10.1093/slr/hmz005
[4] Sahay.P. (2021) Understanding Re-promulgation of Ordinances under Articles 123 and 213 of the Indian Constitution and its Direct Challenge to Parliament’s Supremacy in the Area of Law Making, IJLMH. 4 (2) ,564 – 569. http://doi.one/10.1732/IJLMH.26103
[5] Goel, S. (2019). The Industrial Employment (Standing Orders) Act, 1946: Key Aspects. International Journal of Legal Developments and Allied Issues, 5(2).
YLCC would like to thank Dipti Tharwani for her valuable insights in this article.
