CA Foundation · Business Laws · Indian Regulatory Framework
The LLP Act, 2008 is a Central Act passed by Parliament. The Central Government later notified detailed LLP Rules (for example on forms and fees) under powers given in that Act. Which statement correctly describes these Rules?
The LLP Rules are delegated legislation: the executive makes them under authority conferred by the parent Act passed by Parliament. They are not ordinances, which are issued when the legislature is not in session, nor custom or judicial precedent. They must stay within the Act.
- AThey are an ordinance, valid for six months after Parliament reassembles
- BThey are delegated legislation made under authority conferred by ParliamentCorrect
- CThey are customary law recognised by courts
- DThey are a judicial precedent binding on all tribunals
Explanation
Rules made by the executive under powers delegated by a parent Act are delegated (subordinate) legislation. An ordinance is issued by the President or Governor only when the legislature is not in session. Custom and precedent are different sources of law. The rules cannot exceed the parent Act.
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