CMA Foundation · Fundamentals of Business Laws and Business Communication

Primary and Subordinate Legislation: formula sheet

Full chapter guide

Key formulas

Meaning of law: Law = rules made or recognised by the State + enforced by the State; Both parts matter. A mere moral rule is not law because the State does not enforce it.
Main sources of law in India: Constitution, Statutes, Delegated legislation, Judicial precedents, Customs and usages; Learn this list in order. Questions often ask which item is NOT a source.
Public law vs private law: Public law: State vs individual. Private law: individual vs individual; Constitutional, criminal and administrative law are public. Contract and property law are private.
Delegated legislation: Parent Act gives power → authority makes rules, regulations, bye-laws; It must stay within the power given by the parent Act. Otherwise a court can strike it down.
Hierarchy of authority: Constitution > Statutes > Delegated legislation; A lower source cannot override a higher one.
Primary legislation: Primary legislation = Acts/statutes made directly by Parliament or a State Legislature; Its authority comes from the Constitution, not from delegation by another Act. Acts must stay within the Constitution.
Bill and Act: Bill (proposal, no legal force) → passed by the House(s) → assent → Act (binding law); A Bill becomes an Act only after assent. Passing alone is not enough.
Assenting authority: Union Bill: President | State Bill: Governor (if reserved for the President: President); Assent is the final step before a Bill becomes an Act. The Governor may reserve certain State Bills for the President, who then gives the assent.
Ordinary Bill stages: Introduction → discussion/committee → clause-by-clause voting → passing by the House (or both Houses, where the Legislature is bicameral) → assent → Gazette; Learn the order. Questions often ask which stage comes first or last. Parliament has two Houses. A State with a single House needs passing by that House only.
Primary vs subordinate: Act = primary | Rules, regulations, bye-laws = subordinate; Subordinate legislation is made under authority given by an Act.
Definition: Subordinate legislation = law made by an authority under power delegated by an Act; The authority is not Parliament or the State Legislature itself.
Ultra vires test: Subordinate law beyond the parent Act or the Constitution = void; Ultra vires means beyond powers. This is the basis of judicial control.
Main forms: Rules | Regulations | Bye-laws | Orders | Notifications; Match the maker: government for rules, statutory body for regulations, local body for bye-laws.
Types of control: Parliamentary + Judicial + Procedural; Remember the three heads of control.
Primary legislation: Made directly by Parliament or State Legislature = Acts; Gets power from the Constitution. Courts can strike it down only for lack of legislative competence or violation of the Constitution.
Subordinate legislation: Made by an authority under power given by a parent Act = rules, regulations, bye-laws, orders, notifications; Also called delegated legislation. It is valid only within the limits of the parent Act.
Ultra vires test: Rule beyond the power in the parent Act (or against the Constitution) = void; Two kinds: substantive and procedural.
Controls on delegated power: Judicial control + Parliamentary control + Procedural control; Courts review validity. Parliament examines rules laid before it. Procedure includes publication and consultation.

Quick revision

Law is a set of rules of conduct enforced by the State.
Main sources of law include the Constitution, statutes, delegated legislation, customs and judicial decisions.
Primary legislation means Acts passed directly by Parliament or a State Legislature.
An Act is also called a statute.
Subordinate legislation is made by an authority under power given by an Act.
Delegated legislation appears as rules, regulations, bye-laws, orders and notifications.
The Act that gives the power is called the parent or enabling Act.
Delegated law must stay within the limits of its parent Act.
Delegated law that exceeds those limits can be declared invalid by courts.
Primary legislation can be challenged only for lack of competence or violation of the Constitution.
Delegation saves legislative time and allows flexible, technical detail.
In MCQs, ask who made the law and under what power.

Common mistakes

Treating delegated legislation as a separate Act of Parliament. Fix: Remember that delegated legislation is made by an authority using power given by an Act. Parliament does not pass it as a fresh Act.
Saying every custom is law. Fix: A custom is accepted only if it is long-standing, reasonable, certain and not against a statute or public policy.
Calling a Bill an Act as soon as the House or Houses pass it. Fix: Remember that assent is needed. Passed by the House (or Houses) plus assent equals Act.
Treating rules and regulations as primary legislation. Fix: Ask who made them. If an authority made them under power given by an Act, they are subordinate.
Treating an Act of Parliament as subordinate legislation Fix: Check the maker. Parliament or a State Legislature makes primary legislation. Anyone acting under an Act's power makes subordinate legislation.
Thinking subordinate legislation can override the parent Act Fix: It ranks below the Act. If it conflicts, it is void to that extent.
Treating rules and regulations as primary legislation because they look like law. Fix: Primary means passed by the legislature. Anything made under an Act's authority is subordinate.
Thinking subordinate legislation can override the parent Act. Fix: The parent Act is superior. A conflicting rule is void to that extent.

Exam tips

Learn the five sources as a list and the one-line clue for each. Most questions test only recognition.
Watch for 'NOT' and 'except' in the question. Read the stem twice before marking.
For public and private law, always identify the parties first.
Do not spend more than a minute on a theory MCQ. You have 50 questions in one hour.
Remember the Constitution is the supreme source, and no ordinary law can override it.
Expect direct questions on the difference between a Bill and an Act. Remember that a Bill is a proposal and an Act is law.
Know typical examples of Acts, such as the Indian Contract Act, 1872 and the Companies Act, 2013.
Learn the order of stages in the process, since questions may ask which stage comes first or last.