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IAI Actuarial Core Principles · Business Management · Sources of Indian law and valid contracts

The Actuaries Act, 2006 is a statute enacted by Parliament that established the Institute of Actuaries of India as a statutory body. Where a provision of the Institute's own regulations conflicts with a provision of the Act itself, which approach reflects the Indian hierarchy of sources?

The Act prevails. Regulations made by the Institute are subordinate legislation derived from the Actuaries Act, 2006, so any provision conflicting with the Act is invalid to that extent. Neither specificity nor Council approval lets a regulation override the parent statute.

  1. AThe regulation prevails because it is more specific
  2. BThe Act prevails, and the conflicting regulation is invalid to that extentCorrect
  3. CBoth apply equally and the member may choose which to follow
  4. DThe regulation prevails if the Council of the Institute approved it unanimously
  5. The conflict is resolved by the oldest document in time

Explanation

Regulations of a statutory body are subordinate legislation made under the Act. If they conflict with the Act, they are ultra vires to that extent and the Act prevails. Specificity, unanimous approval or age of the document does not change this hierarchy.

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