What are Bills, Acts, Laws, Ordinances, Rules

What are Bills, Acts, Laws, Ordinances, Rules, etc with Examples? Every Act was once a Bill, but not every Bill becomes an Act In simple words, if the law were a tree, bill, act, ordinance, rules, regulations, notifications, orders, by-laws, customs or usage would be its branches, each playing a distinct role. 1/ Bill A 'bill ' can be contemplated as the initial stage of an act. It is a proposal to draft a new law. Generally, a bill is in the form of a document that summarizes what is the policy behind the suggested law and what the said law is going to be. A Bill can be introduced by the Parliament or State Governments or proposed by a member of the Parliament. Once passed in the Lower House after discussions, the Bill moves to the Upper House for approval. Once the bill is passed by the Upper House, then it is sent to the Indian President for his assent. Ultimately, a bill becomes a law (Act) or a statute of the land after it is passed by the Parliament and assented by the President. However, not all bills become acts, some bills do lapse and need to be reintroduced. Example — The Goods and Services Tax (GST) Bill which became the Goods and Services Tax (GST) Act 2017. 2/ Act Once the Bill has been passed by the legislature (Lok Sabha and Rajya Sabha), it is sent to the President or the Governor, in the case of central law or State law, respectively, for approval. After receiving the Presidential assent, it becomes an Act. An Act is a law that is made by the legislature , such as the Parliament or the State Legislative Assembly. Acts are laws passed by Parliament , whereas bills are proposed legislation under consideration by a legislature. Therefore, a bill is a draft, and acts are laws made by the government. In this sense, a bill becomes an act when it is passed through the government. Examples — GST Act 2017, Indian Contract Act 1872, Transfer of Property Act 1882, Hindu Marriage Act 1955, etc How an Act is different from a Code? First, understand that Acts and Codes are both forms of legislation Act Code An Act is a law passed by the parliament/ state legislature. A Code is a systematic and comprehensive compilation of law on a particular subject It can either introduce new laws or amend/repeal existing laws. It consolidates & codifies all legal provisions related to that subject. For ex- Prevention of Money Laundering Act 2002 - Regulates money laundering and sets penalties for related offenses. For ex- Code of Criminal Procedure 1973 - Governs the process for criminal trials, arrests and investigations. 3/ Law The word 'law' generally refers to the set of regulations or rules to be followed. Law is an umbrella term that can be in any form, such as an act, ordinance, order, by-law, rule or regulation, etc. The law can be any provisions of any valid Act passed by the legislature, whether acts and cod es from pre-independence India ordinances passed by a Governor of a State or the President of India, decisions of th e High Courts or Supreme Court Authorized orders, notices, rules, etc. made by government bodies. Examples — Criminal Law (includes BNS, BNSS, BSA, etc), Civil Law (includes CPC, Limitation Act, etc.), Family Law (Hindu Marriage Act, Succession Act, etc.). 4/ Ordinance Indian Constitution gives both the President and the Governors "Ordinance-making power". These powers are valid for 6 months. Under the Constitution, the legislature has the power to make laws. However, when Parliament is not in session and ‘immediate action’ is needed, the President can issue an ordinance. The ordinance is a temporary law and could introduce legislative changes. The ordinance is circulated by the President on the recommendation of the Union Cabinet. In these cases, the government refers a proposal to the President or Governor of a State, and if they approve of it, it becomes an Ordinance. The legality of an ordinance is that it is equal to the Act. Example —The Indian Institute of Information Technology, Design and Manufacturing, Kancheepuram Ordinance, 2011, gave IIIT Kancheepuram the status of an institute of national importance so that students could be awarded their degrees upon completion of their courses. What happens to the ordinance when Parliament is in session? The ordinance must be presented within 6 weeks of its first meeting. Parliament could either pass it as a law or let it lapse. Once the ordinance is laid in Parliament, the government introduces a Bill addressing the same issue. This Bill is supposed to highlight the reasons that necessitated the ordinance's issue. Thereafter, the Bill follows the regular law-making process. 5/ Rules When an Act is introduced and passed, it is not mandatory that it be a complete code in itself. So, rules defining the procedures for performing and implementing the Act are required. In short, rules provide procedural laws. These are specific guidelines framed under an Act to define procedures for its implementation. They are subordinate to Acts and help in detailing the application of laws. Rules are always derived from an Act and cannot exist independently. They define the procedural aspects of how an Act will be applied in practice. Example — Section 15 of the Industrial Employment (Standing Orders) Act, 1946 gives powers to the appropriate Government to make rules to carry out the purposes of this Act like procedures for certifying officers and appeals. Thus, the Industrial Employment (Standing Orders) Central Rules, 1946 were drafted by the Centre. 6/ Regulations These have a broader scope than Rules. They govern how organizations, statutory bodies, or authorities function and regulate their own procedures. Regulations are official directives issued by the government or regulatory authorities to oversee and govern industries, businesses, and public conduct. Regulations are made by independent bodies or statutory authorities (like RBI, SEBI, CCI, ICAI) to regulate their internal functioning. Set internal policies, standards, and guidelines for specific organizations Example —the Competition Act, 2002 confers powers on the Commission to make regulations to carry out the purposes of the Act. The Competition Commission of India made The Competition Commission of India (Manner of recovery of monetary penalty) Regulations, 2011 exercising this power. What is the difference between Rules and Regulations? Basis Meaning Rules Rules are the basic methods and procedures for implementing any section or clause of the Act. Regulations Regulations refer to the guidelines that a statutory body frames for its own governance and management. Subordinate Act to Both Act and Rules Created by Organization or Body Central or State Government 7/ By-laws By-laws are rules or regulations framed by local authorities, statutory bodies, or organizations to regulate specific matters within their jurisdiction. They are a form of subordinate legislation, meaning they derive authority from a parent law passed by Parliament or State Legislatures. Characteristics of By-laws Framed by Local Authorities or Organizations – Municipal corporations , development authorities , cooperative societies , and companies create by-laws . Legally Binding – By-laws have the force of law within their limited jurisdiction. Specific Scope – They address particular aspects like town planning, safety, sanitation, or business operations. Delegated Power – They must be made within the limits prescribed by the enabling legislation. Example — No Parking Zones or Traffic Signals enforced by municipal authorities under the Motor Vehicles Act, 1988. Below are the by-laws established by the Indore Municipal Corporation to regulate C&D waste within the city. 8/ Orders "Orders" refer to directives issued by the government, a presiding officer (Speaker/Chairperson), or a competent authority to regulate parliamentary proceedings, implement laws, or ensure administrative efficiency. These orders have legal and procedural significance and can be broadly classified as follows: Types of Orders in Parliament Presiding Officer's Orders - Issued by the Speaker of Lok Sabha or Chairperson of Rajya Sabha to maintain order, discipline, and conduct of business in the House. Example — Expulsion of a member for disorderly conduct under Rule 374A of Lok Sabha Rules. Government Orders (Executive Orders) - Issued by the executive (Union or State government) to implement laws, policies, or administrative measures. Example — Appointing and removing high-ranking government officials. Statutory Orders - Orders issued under specific Acts of Parlia ment by government authorities. 9/ Notifications A notification is an official public announcement issued by the government, a ministry, or a statutory authority to inform citizens, businesses, or government officials about rules, decisions, or legal changes. In India, notifications are used to implement laws, amend existing rules, or clarify policy decisions. Once issued under the authority of law, they are legally binding. Example — Demonetization Notification (2016) – The Government of India issued a notification under the Reserve Bank of India Act, 1934, declaring ?500 and ?1000 notes as invalid legal tender. 10/ Custom & Usage It refers to long-standing practices or traditions followed by a community or society that gain legal recognition over time. These unwritten norms influence the development of laws and legal principles, particularly in areas where formal legislation is absent or silent. Custom in Law Customs are recognized as a source of law in many legal systems. For a custom to be legally valid, it must meet certain conditions: Antiquity – It must be followed for a long period. Continuity – It should have been consistently practised without interruption. Reasonableness – It should not be contrary to morality, justice, or public policy. Certainty – It must be clear and specific. Compulsory Acceptance – It should be widely accepted and practiced by the community. Not Against Statutory Law – A custom cannot override an existing statutory law. Usage in Law Usage is similar to custom but often applies to specific trades, businesses, or local practices. It refers to a commonly accepted way of doing something in a particular field or industry. While customs have a broader legal standing, usage typically holds importance in commercial transactions or contractual obligations. Example —The Hindu Marriage Act, 1955 (Section 7) acknowledges marriage ceremonies conducted according to local customs. Note- Article 13 of the Constitution legally recognizes customs and usage unless they violate fundamental rights.