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CMA Foundation · Fundamentals of Business Laws and Business Communication · Primary and Subordinate Legislation

Parliament passes an Act that says the Central Government may, by rules, decide every aspect of a levy, including whether it is to be imposed, its rate and its scope, with no guidance in the Act. A challenge to this Act is most likely to succeed on which ground?

The challenge would most likely succeed on the ground of excessive delegation. Parliament cannot hand over its essential legislative functions, such as laying down policy, to the executive. An Act that leaves every aspect of a levy to rules, with no guidance, can have the delegating provision struck down.

  1. AThe delegate has acted with mala fide intention
  2. BExcessive delegation, since essential legislative functions have been handed over without any policy laid downCorrect
  3. CThe rules were not laid before Parliament
  4. DThe rules were published late in the Gazette

Explanation

The legislature cannot abdicate its essential legislative function. Here the Act gives no policy or guidance and leaves the executive to decide everything, which is excessive delegation, and the delegating provision itself can be held invalid. The other options concern defects in how a delegate acts or in procedure, not in the Act itself.

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