CMA Intermediate · Business Laws and Ethics
Introduction to Law and Legal System in India: formula sheet
Key formulas
- Definition of law (exam-ready)
- Law = general rules of conduct + made or recognised by the State + binding on all + enforced by sanctions
- Use these four elements to build a definition in any answer.
- Classification: public vs private law
- Public law: State ↔ individual (constitutional, criminal, administrative). Private law: individual ↔ individual (contract, tort, property, family).
- Always give one example for each.
- Other classifications
- Substantive vs procedural; civil vs criminal; national vs international
- Substantive law creates rights and duties; procedural law gives the method to enforce them.
- Sources of Indian law
- Constitution → Statutes → Delegated legislation → Precedents → Customs → Personal laws
- The Constitution is supreme. A law that conflicts with it can be declared invalid by the courts.
- Statutory law vs case law
- Statutory law = written, made by legislature. Case law = developed by judges through decisions.
- Courts interpret statutes, and these interpretations become precedents.
- Three organs and their core function
- Legislature = makes law; Executive = implements law; Judiciary = interprets law and decides disputes
- Use this as the opening line of any descriptive answer.
- Union Parliament
- Parliament = President + Lok Sabha + Rajya Sabha
- The President is a part of Parliament even though he does not sit in either House.
- State Legislature
- State Legislature = Governor + Legislative Assembly (+ Legislative Council in some States)
- Only some States have a Council.
- Division of legislative power
- Seventh Schedule: List I (Union), List II (State), List III (Concurrent)
- Residuary power belongs to Parliament.
- Conflict on a Concurrent subject
- Union law prevails over State law, in general
- Mention that a State law reserved for the President and given his assent can prevail in that State, though Parliament can later override it; do not say the Union law always wins.
- Passage of an ordinary Bill
- Introduction → three readings in each House (Assembly, and Council where it exists, for a State) → assent → Act
- A Bill is a proposal; an Act is the law after assent. Money Bills originate only in the Lok Sabha.
- Court hierarchy (top to bottom)
- Supreme Court → High Court → District / Sessions Court → Lower civil and Magistrate courts
- Appeals normally go upward one step at a time. Tribunals are specialised bodies and are not part of the regular civil and criminal court ladder. Their appeal route depends on the statute (for example, NCLT to NCLAT to Supreme Court; Income-tax Appellate Tribunal to High Court), and their decisions remain open to judicial review by the High Courts.
- Main heads of jurisdiction of the Supreme Court
- Original (Art. 131) + Appellate + Advisory (Art. 143) + Writ (Art. 32) + Special Leave (Art. 136) + Review (Art. 137)
- Article 141 makes its law binding on all courts in India.
- Writ jurisdiction
- Supreme Court: Article 32 (Fundamental Rights only). High Court: Article 226 (Fundamental Rights and other legal rights)
- Article 32 is itself a Fundamental Right. Article 226 is wider in scope.
- Five writs
- Habeas Corpus, Mandamus, Prohibition, Certiorari, Quo Warranto
- Habeas corpus: produce the detained person. Mandamus: command to perform a public duty. Prohibition: stops a lower court from exceeding jurisdiction. Certiorari: quashes an order already passed by a lower body. Quo warranto: asks by what authority a person holds a public office.
- Court versus tribunal
- Court = general jurisdiction, part of regular judiciary. Tribunal = special subject, set up by statute
- Both decide disputes and give binding decisions. A tribunal's members may include technical experts.
- Literal rule
- Clear words → apply the ordinary, natural meaning
- Used when the words are plain and unambiguous. The court does not look at the result.
- Golden rule
- Literal meaning + modification only to avoid absurdity or repugnancy
- A modified form of the literal rule. Change only as much as needed.
- Mischief rule (Heydon's case)
- Find the mischief → find the remedy → read the law to suppress the mischief
- Four questions: earlier law, defect, remedy, reason for the remedy.
- Internal aids
- Title, preamble, headings, marginal notes, definitions, provisos, explanations, illustrations
- Found inside the Act itself.
- External aids
- Dictionaries, history, debates, committee reports, other statutes
- Found outside the Act. Use them when internal aids do not settle the doubt.
- Gender and number (General Clauses Act, 1897)
- Masculine includes feminine; singular includes plural and the other way round
- Applies unless there is anything repugnant in the subject or context.
- Context rule for definitions
- Definition applies unless the subject or context otherwise requires
- Always mention this condition when stating any definition.
Quick revision
- Law is a set of rules made or recognised by the State and enforced through courts.
- Sources of law include the Constitution, legislation, custom, judicial precedent and delegated legislation.
- The Constitution is the supreme law, and any law that conflicts with it can be struck down by courts.
- Fundamental Rights are enforceable by the Supreme Court and High Courts through writs.
- Government has three organs: Legislature makes law, Executive applies it, Judiciary interprets and enforces it.
- The Supreme Court is the highest court, followed by High Courts and then subordinate courts.
- Tribunals are special bodies that decide disputes in specific areas of law.
- Judicial precedent means lower courts follow the binding decisions of higher courts.
- The literal rule reads words in their ordinary meaning unless that leads to absurdity.
- The General Clauses Act, 1897 gives standard definitions and rules for reading Central Acts.
- In MCQs, read all four options before choosing, as there is no negative marking.
Common mistakes
- Treating morals and law as the same thing. Fix: State clearly that law is enforced by the State through courts and morality is not.
- Listing sources without placing the Constitution first as the supreme law. Fix: Start with the Constitution and say that every statute and rule must conform to it.
- Saying India has a strict separation of powers. Fix: Write that the separation is flexible: ministers sit in the legislature, but the judiciary is independent and checks the other two.
- Forgetting that the President and Governor are part of the legislature. Fix: Define Parliament as President plus both Houses and the State Legislature as Governor plus the Assembly (and Council where present).
- Saying Article 32 and Article 226 give identical powers. Fix: Remember that Article 32 covers Fundamental Rights only, while Article 226 also covers other legal rights. A High Court's writ power is wider.
- Mixing up prohibition and certiorari. Fix: Prohibition is preventive and issued while proceedings are pending. Certiorari is corrective and issued after an order is made.
- Treating the golden rule as a separate rule that ignores the words. Fix: Write that the golden rule begins with the literal meaning and changes it only to avoid absurdity.
- Confusing the literal rule with the mischief rule. Fix: Literal looks at words only. Mischief looks at the purpose and the defect the Act meant to cure.
Exam tips
- Expect Section A MCQs on definitions, public versus private law and the supreme source. They carry 2 marks each and there is no negative marking, so attempt all.
- In written answers, use numbered points with a short explanation each. Step-wise presentation earns marks.
- Always add one example for each class or source, such as the Constitution for supreme law or rules made under an Act for delegated legislation.
- In distinction questions, compare on at least four bases and keep the points side by side.
- Revise this topic together with the Constitution and the court hierarchy, as questions often link them.
- In MCQs, the usual traps are Concurrent subjects placed in the wrong list and the claim that Union law always prevails. Check the exact wording.
- In written answers, name the body at both Union and State level for each organ. This earns easy marks.
- For separation of powers, write that it is flexible in India and give the two supporting points: overlap of legislature and executive, and independent judiciary.