CA Foundation · Business Laws · Indian Regulatory Framework
Mohan Enterprises Ltd. is told that the Companies Act, 2013 permits the Central Government to make rules under the Act to supply details of procedure. What is this lawmaking by the executive under powers given by Parliament called?
This is delegated legislation, where Parliament empowers the Central Government to frame rules for detailed procedure under the Act. An ordinance is a different, temporary law made when the legislature is not in session, while precedent and custom are separate sources of law.
- ADelegated legislationCorrect
- BOrdinance
- CJudicial precedent
- DCustomary law
Explanation
When Parliament authorises the executive to make rules and regulations to fill in details of an Act, it is delegated (subordinate) legislation. An ordinance is issued by the President or Governor when the legislature is not in session. Precedent comes from courts and custom from long usage.
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