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CA Intermediate · Corporate and Other Laws · The General Clauses Act, 1897

Under a Central Act passed in 2015, a power was conferred on the Central Government to frame rules. The Act's provisions say that the Act comes into force on 1 April 2016, but the Act received the assent of the President on 20 December 2015. Rules under the Act are proposed to be framed before 1 April 2016. As per the General Clauses Act, 1897, what is the legal position?

Rules may be framed after the President's assent but before the Act commences, since the General Clauses Act permits preparatory exercise of powers. Such rules, however, become effective only when the Act itself comes into force on 1 April 2016, not on the date they are made.

  1. ARules cannot be made until the Act actually comes into force on 1 April 2016
  2. BRules may be made after assent but before commencement, though they take effect only from the Act's commencementCorrect
  3. CRules made before commencement take effect immediately on being made
  4. DRules may be made only with the consent of the President

Explanation

The General Clauses Act allows a power to make rules, appoint officers or issue orders to be exercised after the Act is passed (assent) even though the Act itself is not yet in force. However, such rules or orders take effect only from the commencement of the Act. Option C is wrong because the exercise of power does not bring the rules into operation early.

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