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CA Foundation · Business Laws · Indian Regulatory Framework

Asha, a trader in Jaipur, wants to know which source of law gives the Union Parliament its power to make laws for the whole country and fixes the division of law-making subjects between the Centre and the States. Which of the following is that source?

The Constitution of India is the source. It is the supreme law that creates Parliament and the state legislatures and divides law-making subjects among the Union, State and Concurrent Lists. Judgments, customs and circulars all operate beneath it and cannot confer law-making power.

  1. AThe Constitution of IndiaCorrect
  2. BA High Court judgment
  3. CTrade custom followed in the market
  4. DAn RBI circular

Explanation

The Constitution is the supreme source of law in India. It sets up Parliament and the state legislatures and divides subjects among the Union, State and Concurrent Lists. Court judgments, customs and regulator circulars operate within the framework it creates and cannot give Parliament its powers.

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