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CA Foundation · Business Laws · Indian Regulatory Framework

The Central Government, under authority granted by an Act of Parliament, frames rules to carry out the Act's purposes. A firm argues the rules are invalid because Parliament itself did not pass them. Which view is correct?

The rules are valid as delegated legislation, provided they stay within the powers conferred by the parent Act. Rules that exceed or contradict the Act are ultra vires and can be struck down by courts. Prior Supreme Court approval is not required.

  1. AInvalid, because only Parliament can ever make binding rules
  2. BValid, as delegated legislation, provided the rules stay within the powers granted by the parent ActCorrect
  3. CValid even if they contradict the parent Act, as the Government is superior to Parliament
  4. DValid only if approved by the Supreme Court beforehand

Explanation

Delegated or subordinate legislation is made by an authority to whom Parliament has delegated power through a parent Act. Such rules are valid only if they remain within the scope of that delegation and do not conflict with the Act. Rules that go beyond or contradict the parent Act can be struck down by courts as ultra vires.

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