Difference between Acts, Rules, Regulations

Often, there is confusion surrounding the interchangeable use of the terms Acts, Rules, and Regulations, but it’s important to recognize that these terms carry unique meanings while being connected. Therefore, we are presenting the difference between Act, Rules and Regulations.

According to Article 13(3)(a) of the Constitution of India, the term “law” encompasses Ordinances, orders, bye-laws, rules, regulations, notifications, customs, or usages that hold the force of law within the territory of India.

This article focuses on the three terms: Acts, Rules, and Regulations and their distinction to each other.

What is a Bill?

To understand an Act, one must understand first, what is a bill?

A ‘Bill’ can be seen as the initial phase of An act, representing a proposal for a new law. Typically, a Bill takes the form of a document outlining the policy behind the proposed law and its specifics.

The Bills are introduced and passed by the Union and State Legislatures (in their respective domains) in accordance with the procedure defined in the Constitution. Following the passage of a Bill in the Legislature, it is presented to the President (or Governor in case of States) for her assent.

How does a Bill become an Act?

A Bill becomes an Act once it receives the assent of the President (or the Governor).

Generally, the Act comes into the force on the date of assent by the President (or the Governor). Sometimes, the Act itself mentions the date of enforcement, or the Government can issue a Gazette notification to indicate the date of commencement of the Act.

However, it’s important to note that not all Bills become Acts; some may lapse and require reintroduction.

What are Rules?

An Act provides a comprehensive framework for the implementation of laws on a specific subject matter. For instance the Companies Act of 2013 encompasses various aspects related to companies, from their formation, general functioning to dissolution.

As an Act provides a broad legal framework; achieving a thorough and comprehensive coverage across complicated matters can be challenging. It’s not always possible for the Act to encompass every minute detail of the subject matter; doing so could result in a lengthy and tedious document. So, there is a requirement for the enactment of rules for defining the procedures of performing and implementing the Act.

Moreover, codifying everything in the Act, may require frequent amendments to the Act (which is a lengthy process) as implementation evolves. The provision of Rules provides greater flexibility in the implementation of the Act.

Rules are inherently secondary to their parent Acts. Consequently, Rules must be within the scope defined by the parent Act. The authority to formulate rules is derived from a specific section within the act.

For example, The Foreign Exchange Management Act of 1999 (FEMA) is designed to consolidate and modify laws pertaining to foreign exchange. Under section 46[4] of this Act, there exists a provision granting the Union Government the authority to formulate rules for the effective implementation of the Act and to ensure compliance with its provisions.

According to Article 13(3)(a) of the constitution, the Rules are considered to have the effect of law. While Rules outline the procedural aspects of laws, they cannot contradict the Act, although they can be modified.

In situations where there is a conflict between the Act and the Rules, the provisions of the Act will take precedence.

What are Regulations?

Often, the terms Rules and Regulations are used interchangeably.

In the UK, the Donoughmore Committee was appointed in 1929 to look into the issues related to Delegated Legislation among other matters associated with the procedure and mechanisms adopted by the Executive for its functioning.

The Committee had noted that due to gradual evolution of Delegated Legislation, the choice of terminology had not been specific (but “accidental”), and the nomenclature thus caused “considerable confusion”. The British Acts delegated power through “regulations”, “rules”, “orders”, “warrants”, “bye-laws” or “other instruments”.

In its recommendations, the Committee made an effort to define the terms more precisely. It recommended:

The expression “Regulation” should be used to describe the instrument by which the power to make substantive law is exercised.

The expression “Rule” should be used to describe the instrument by which the power to make law about procedure is exercised.

Thus, Regulations are of wider import i.e., their scope is much broader than Rules. On the other hand, rules are related to purely “procedural aspects”.

As an example, the Ministry of Women and Child Development has issued Protection of Children from Sexual Offences Rules, 2020 (POCSO Rules) for elaborating the procedural aspects of the POCSO Act related to Procedure regarding care and protection of child, Medical aid and care, Legal aid and assistance, Compensation etc. The Rules have 13 clauses (including a clause repealing POCSO 2012 rules).

The Ministry of Women and Child Development has issued Adoption Regulations, 2022 under the Juvenile Justice (Care and Protection of Children) Act, 2015. The Regulations cover wide aspects like eligibility criteria (eligible children and prospective adoptive parents), procedures related to children for adoption, adoption procedure for resident Indians, non-resident Indians and foreign citizens, Establishment of Specialized Adoption Agencies and their functions, Functions of Government organizations etc. The Regulations have 71 Clauses and 36 Schedules.