Fundamentals of Business Laws and Business Communication · Sources of Law

Legislation, Delegated Legislation and Precedent Explained

Updated 10 October 2026 · Fact-checked

Legislation is law made by a competent legislature, such as Parliament. Delegated legislation is law made by an authority to whom the legislature has given power through an Act. Precedent is law that comes from earlier judicial decisions, which courts follow under stare decisis. For MCQs, first identify who made the rule.

Understand Legislation, Delegated Legislation and Precedents

Law does not come from one place. In India, three important sources are legislation, delegated legislation and judicial precedent. Most MCQs ask you to tell them apart, so start with one question: who made this rule?

Legislation (also called statute law or enacted law) is law made by a body with the power to make it, such as Parliament or a State Legislature. The result is an Act. It is written, formal and usually the main source of law today. The Companies Act and the Income-tax Act are Acts of Parliament.

Delegated legislation (also called subordinate legislation) is law made by a person or body other than the legislature, using power the legislature gave it through a parent Act. Parliament cannot write every detail, so it passes the broad law and lets the Government or another authority fill in the details. Common forms are rules, regulations, bye-laws, orders and notifications. It stays under the control of the parent Act and the Constitution. If it goes beyond the power given, courts can declare it invalid.

Judicial precedent (also called case law) is law that comes from the decisions of courts. The doctrine of precedent, or stare decisis ("stand by what has been decided"), means courts should follow earlier decisions on similar facts. In India, a decision of the Supreme Court is binding on all courts in India (Article 141 of the Constitution). A High Court decision binds courts below it in its own state, and is only persuasive elsewhere.

A useful way to remember: legislation is made by the legislature, delegated legislation is made under an Act, and precedent is made by judges. Within a decision, the ratio decidendi (the legal principle on which the decision rests) is what binds. Remarks made in passing, called obiter dicta, only persuade.

Key formulas to remember

Legislation: Legislation = law enacted by the legislature (Act or statute); Written, formal and made by Parliament or a State Legislature. Also called statute law or enacted law.
Delegated legislation: Delegated legislation = law made by an authority under power given by a parent Act; Includes rules, regulations, bye-laws, orders and notifications. It is subordinate to the parent Act and can be struck down if it exceeds that power.
Doctrine of precedent: Stare decisis = follow earlier decisions on similar facts; Higher court decisions bind lower courts. Supreme Court law binds all courts in India under Article 141.
Ratio decidendi vs obiter dicta: Ratio decidendi = binding reason; obiter dicta = passing remarks; Only the ratio binds. Obiter dicta have persuasive value only.
Statute law vs case law: Statute law = made by legislature; case law = made by judges through decisions; Statute law is written in an Act. Case law is found in law reports.

How to solve Legislation, Delegated Legislation and Precedents questions

Use this method for any MCQ that asks you to identify, define or compare these three sources of law.

1Read the question and find the clue word: Act, Parliament, rules, regulations, notification, court decision, binding, or earlier judgment.
2Ask who made the rule: the legislature, an authority acting under an Act, or a court.
3Match the maker to the source: legislature gives legislation, authority under an Act gives delegated legislation, court gives precedent.
4If the question is about validity, remember that delegated legislation must stay within the parent Act, and courts can strike it down if it does not.
5If the question is about binding force, apply the court hierarchy: a higher court binds a lower court, and Supreme Court law binds all courts in India.
6Eliminate options that mix up the makers, or that call obiter dicta binding.
7Pick the option that fits the maker and the conditions.

Quickest way: Who made it? Three-way match

When to use it: Use for definition, identification and difference-type MCQs when time is short.

Underline the clue word in the question.
Act or Parliament means legislation.
Rules, regulations, bye-laws or notifications made under an Act means delegated legislation.
Earlier judgment, stare decisis or ratio means precedent.
Remove any option that gives the wrong maker, then choose the remaining one.

Common mistakes in Legislation, Delegated Legislation and Precedents

Treating delegated legislation as made by Parliament.
Rules and regulations look like part of the Act, so students assume the same maker.
Fix: Remember that the maker is an authority given power by the Act. Parliament only grants the power.
Thinking delegated legislation cannot be challenged.
Students assume anything with legal force is final.
Fix: It is subordinate. If it goes beyond the parent Act or conflicts with the Constitution, courts can declare it invalid.
Saying every part of a judgment binds later courts.
Students ignore the difference between the ratio and passing remarks.
Fix: Only the ratio decidendi binds. Obiter dicta are persuasive only.
Believing a High Court decision binds all courts in India.
Students mix up the Supreme Court and High Courts.
Fix: Supreme Court law binds all courts in India. A High Court decision binds courts below it in its own state and only persuades elsewhere.
Confusing statute law with case law.
Both are called law, and judges also interpret Acts.
Fix: Statute law is enacted by the legislature. Case law is built from court decisions. Judges interpret an Act but do not enact it.

Worked examples

Example 1

Rules framed by the Central Government under an Act passed by Parliament are an example of: (A) Legislation made directly by Parliament (B) Delegated legislation (C) Judicial precedent (D) Custom

Show the solution

Find the clue: rules framed by the Government under an Act.
Ask who made them: the Government, not Parliament and not a court.
The Government acts under power given by the parent Act.
Law made this way is delegated legislation.
Eliminate A (Parliament did not make the rules), C (no court decision is involved) and D (no long-standing practice is described).

Answer: (B) Delegated legislation

Example 2

Which statement about the doctrine of precedent in India is correct? (A) Only obiter dicta of a judgment bind lower courts (B) A decision of a High Court binds the Supreme Court (C) The ratio of a Supreme Court decision binds all courts in India (D) Courts must never follow earlier decisions

Show the solution

Recall that stare decisis means following earlier decisions.
Check A: obiter dicta only persuade, so it is wrong.
Check B: a lower court cannot bind a higher court, so it is wrong.
Check C: Article 141 makes Supreme Court law binding on all courts in India, and the binding part is the ratio, so it is right.
Check D: it is the opposite of the doctrine, so it is wrong.

Answer: (C) The ratio of a Supreme Court decision binds all courts in India

Exam tips

Most questions on this topic test the maker of the law. Spot the maker and you usually have the answer.
Learn the synonyms: statute law and enacted law mean legislation; subordinate legislation means delegated legislation; case law means precedent.
Remember the list of delegated forms: rules, regulations, bye-laws, orders and notifications.
In precedent questions, check the court level first, then check whether the point is ratio or obiter.
With no negative marking, always attempt every question and eliminate wrong makers first.

Practice questions from Sources of Law

Legislation, Delegated Legislation and Precedents in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Legislation, Delegated Legislation and Precedents: frequently asked questions

What is delegated legislation and what are its types?

Delegated legislation is law made by an authority under power given by a parent Act. It is also called subordinate legislation. Common forms are rules, regulations, bye-laws, orders and notifications.

What is the doctrine of precedent or stare decisis in India?

It means courts should follow earlier decisions on similar facts. A Supreme Court decision binds all courts in India under Article 141. A High Court decision binds courts below it in its own state.

What is the difference between statute law and case law?

Statute law is written law enacted by a legislature such as Parliament. Case law is law that develops from decisions of courts. Judges interpret statutes, but the Act itself comes from the legislature.

Can courts strike down delegated legislation?

Yes. Delegated legislation is subordinate to its parent Act and the Constitution. If it goes beyond the power given or conflicts with them, a court can declare it invalid.