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Difference Between Act, Bill, Rules, Regulations, Ordinance & Bye-laws | Simple Legal Guide

• 03 Sep 2025

When we read newspapers or listen to news, we often hear words like Act, Bill, Rules, Ordinance and so on. Many people think all these words mean the same thing — but they don’t. Each one has a different role in our legal system. Let’s break it down in a very simple way.

1. Bill – The Proposal

Think of a Bill as an idea for a new law. It is just a draft (a rough copy) placed in front of Parliament or State Legislature.

• If approved by both Houses and signed by the President (or Governor), it becomes an Act.
  Example: The GST Bill was just a proposal at first. Once passed, it became the GST Act, 2017.

2. Act – The Law

An Act is the final version of a Bill. Once approved and signed, it becomes an official law.

• Acts tell us the broad rules and principles, but not always the step-by-step details.
  Example: Indian Penal Code (IPC) is an Act that defines crimes and punishments.

3. Rules – The How-To Guide

Rules are like an instruction manual. They explain how an Act will actually work in day-to-day life.

• Made by the government under the power given by the Act.
  Example: The Motor Vehicles Act is the law, but the Central Motor Vehicle Rules explain how licenses, fines, and road safety will be handled.

4. Regulations – The Specialist Instructions

Some authorities (like RBI, SEBI, IRDAI) are experts in their fields. They make Regulations to control specific industries.

• These are more detailed than Rules and apply only to certain sectors.
  Example: SEBI makes regulations for how companies trade shares on the stock market.

5. Ordinance – Emergency Law

Sometimes, Parliament or a State Assembly is not in session but an urgent law is needed. In such cases, the President (or Governor) can bring in an Ordinance.

• An Ordinance has the same power as an Act but is temporary. It must be approved by the legislature within a few weeks, or it lapses.
  Example: When quick action was required on land laws, the government issued a Land Ordinance.

6. Bye-laws – Local Rules

Bye-laws are small laws made by local authorities like municipal corporations, housing societies, or panchayats.

• They apply only to that specific area or society.
  Example: A municipal bye-law can tell shopkeepers when they must close their shops, or a housing society bye-law can decide parking rules.

7. Quick Comparison

By knowing these simple differences, we can better understand how laws are made, applied, and followed in our country.