Difference between Bills, Acts, Ordinances, Rules & Regulations

Can we call the Contract Act or Companies Act a "Bill"? Wait! Before you answer, here's something to remember—every Act was once a Bill, but not every Bill becomes an Act. The key difference? Presidential assent. Once a Bill is passed by both Houses of Parliament and signed by the President, it officially becomes an Act and is no longer called a Bill.

We often hear phrases like "a Bill being introduced," "a law being enacted," "an Ordinance being passed," and "an Act coming into force." But what do they really mean? Are they just fancy legal jargon, or do they serve different purposes?

Understanding these terms is super important, as they form the backbone of India's legal system—a system that blends civil law, common law, and even colonial-era influences. But let's skip the technicalities! 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.

Let's break them down in a way that makes perfect sense!💯

What are Bills, Acts, Laws, Ordinances, Rules, etc with Examples?

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, officially known as the Constitution (122nd Amendment) Bill, 2014, was introduced to bring a unified tax system across India. After being passed by both Houses of Parliament and received Presidential assent on 8 September 2016, it became the Goods and Services Tax (GST) Act 2017.

Also read- List of Enactment & Enforcement Dates of Important Acts in India

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, but they have distinct meanings and applications.

How a Bill becomes an Act?

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. 

• An act is a subset of law. It has the power to confer legal rights, obligations, liabilities, etc. 

• The law can be any provisions of any valid Act passed by the legislature, whether acts and codes from pre-independence India, ordinances passed by a Governor of a State or the President of India, decisions of the High Courts or Supreme Court, authorised 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.).

Also read- Top 150+ Latin Terms & Legal Maxims for CLAT 2026

4/ Ordinance

Article 123 of the Indian Constitution gives the President "Ordinance-making power," whereas Article 213 gives the Governor "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.

Also read- 10 Reasons to Pursue an LLM!

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.

• Rules are specific guidelines or instructions created by an organization, institution, or authority to regulate behaviour and maintain discipline within a specific group or setting. Generally, executives are responsible for making rules.

• Since rules are internal, they are flexible and can be modified as per the changing needs of the organization. 

• Enforcement of rules depends on the internal policies of the entity that establishes them. The consequences for breaking rules are usually determined by the authority that created them and may not have legal implications beyond the institution.

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

Regulations are more rigid than rules. They have a force of law as they are orders passed by Executive authority on the conduct of any legislation. 

• Regulations are official directives issued by the government or regulatory authorities to oversee and govern industries, businesses, and public conduct. 

• They originate from legislative bodies and are legally binding, ensuring compliance on a larger scale. Regulations are not passed before the Houses of Parliament but must be published in the official Gazette to become legal. 

• Unlike rules, regulations cannot be easily modified and require an official process for amendment, often involving legislative or executive action. They apply to entire sectors and carry legal consequences for non-compliance. 

• Regulatory bodies enforce these laws, and violations can result in penalties, fines, or legal action. They are based upon the Act. Regulations are passed to apply the Act, and thus, there can be more than one set of regulations. 

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.

Note—Rules and Regulations are secondary in nature to their parent act. Therefore, rules and regulations cannot go beyond the parent Act, and if any conflict arises between the provisions of an Act and rules/regulations, then the provisions of the Act will prevail. 

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.

Also read- Substantive Law vs. Procedural Law | Types, Case Laws

What is a Bill, Act, Law, By-Laws, Ordinance, Rules, Regulations? 

8/ Orders

In the Indian parliamentary system, "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 Parliament by government authorities.
  Example —
  

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.

Also read- Types of Offences in India

Conclusion

Laws aren't just words on paper; they shape our rights, responsibilities, and daily lives. While Bills, Acts, Ordinances, Rules, and Regulations may seem like legal jargon, each plays a crucial role in turning ideas into enforceable laws. A Bill starts as a proposal, an Act gives it legal authority, and Rules and Regulations ensure it works in practice. Ordinances step in when urgent decisions are needed