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CA Intermediate · Corporate and Other Laws · The General Clauses Act, 1897

A Central Act authorises the Central Government to make rules 'by notification'. The Government wishes to make certain rules before the Act itself commences, using the power conferred by the Act. A person challenges this. Under the General Clauses Act, 1897, what is the position?

The Government may make the rules after the Act is passed but before it commences, but the rules take effect only when the Act itself commences. The General Clauses Act permits advance exercise of the power, while keeping the operation of the rules tied to the Act's commencement.

  1. ARules cannot be made until the Act commences in full
  2. BRules may be made after the Act is passed but before it commences, though they take effect only from the Act's commencementCorrect
  3. CRules may be made and take effect immediately, even before the Act commences
  4. DRules can be made only with Parliament's prior approval in every case

Explanation

Section 20-related and the General Clauses Act provision on exercise of powers before commencement allow the power to make rules to be exercised after the Act is passed, but the rules do not take effect until the Act commences. So rule-making is valid, but operation is postponed. The option allowing immediate effect is wrong because rules cannot operate before the enabling Act does.

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