CMA Foundation Study Material Business Laws Paper 1 Lesson 1.2

Prepare for your CMA Foundation Paper 1 Business Laws and Business Communication. using our CMA Foundation Study Materials. Here is Lesson 1.2: Legislative Process in India.

Lesson 1.2 the CMA Foundation Paper 1 discusses the process of how power
is distributed to legislate and structure of legislature in India.

Lesson 1.2 : Legislative Process in India

Learning Objectives

By the end of this lesson, you will:

• Understand how laws are made in India.
• Learn about the structure of Parliament and State Legislatures.
• Know the difference between Union, State, and Concurrent lists.
• Understand the process of how a Bill becomes a Law.

In a democracy like India, laws are made by the people’s representatives. These representatives work through legislative bodies – the Parliament at the Centre and the Legislatures in the States. The Constitution of India clearly lays down how these bodies are formed and how they get the power to make laws.

Importance of Statutes

The laws made by Parliament or State Legislatures are the most important sources of law in India today.

To understand how laws are made, we must first know how legislative powers are distributed and how legislatures are structured.

Basis of Legislative Authority

The Constitution of India, 1950 gives authority for the legislative process. India has a federal system (two levels of government – Central and State).

However, it is not purely federal. It is called a “quasi-federal state” because:

The Centre (Union Government) is stronger than the States.

Law-Making Bodies in India

There are two levels of legislatures:

(A) At the Central Level – Parliament of India. It is defined under Article 79 of the Constitution. It consists of:

• The President
• Council of States (Rajya Sabha)
• House of the People (Lok Sabha)

(B) At the State Level – State Legislature. It is defined under Article 168 of the Constitution. For every State, there is a Legislature consisting of:

• The Governor, and
• One or two Houses.
• ➡ If one House: It is the Legislative Assembly.
• ➡ If two Houses: (as per Article 168(2)) It is the:
  • Legislative Assembly (Vidhan Sabha) and
  • Legislative Council (Vidhan Parishad) – present only in a few states like UP, Bihar, Maharashtra, Karnataka, etc.

Source of Law-Making Power

Both Parliament (Centre) and State Legislatures derive power to make laws from Article 245 of the Constitution of India.

Power to Legislate

The power to make laws in India is mainly covered in Part XI of the Constitution (Articles 245 to 254). Let’s understand it step by step:

1. Article 245 – General Power

Parliament can make laws for the whole or any part of India. A State Legislature can make laws for the whole or any part of its State.

2. Article 246 & Seventh Schedule – Division of Subjects

Law-making powers are divided between Parliament and State Legislatures through three lists in the Seventh Schedule:

Union List (List I)

Subjects on which only Parliament can make laws.

Example: Defence, Foreign Affairs, Banking, Railways.

State List (List II)

Subjects on which only State Legislatures can make laws.

Example: Police, Public Health, Agriculture.

Concurrent List (List III)

Subjects on which both Parliament and State Legislatures can make laws.

Example: Education, Marriage & Divorce, Electricity.

Article 254 – Conflicts Between Centre & State Laws

Sometimes, both Parliament and State Legislatures make laws on the Concurrent List. This may create conflicts.

If a State law clashes with a Parliament law, the Parliament law will prevail.

However, if the State law was:

• Reserved for the President’s consideration, and
• Received the President’s assent,

then, that State law will prevail in that State, even if it conflicts with a Parliamentary law.

Memory Tip for Exams

U – Union List → U for “Ultimate power = Parliament only.”

S – State List → S for “State only.”

C – Concurrent List → C for “Common to both.”

Introduction of a Bill

What is a Bill?

A Bill is a proposal for a new law.

To make a law, it must first be introduced in the form of a Bill in either House of Parliament (Lok Sabha or Rajya Sabha).

Types of Bills

Government Bill – It is introduced by a Minister.

Private Member’s Bill – It is introduced by a Member of Parliament (MP) who is not a Minister.

Articles Related to Bills

Article 107: A Bill can originate in either House of Parliament (Lok Sabha or Rajya Sabha).

Exception – Money Bill (Article 109): A Money Bill can only be introduced in the Lok Sabha (not Rajya Sabha).

Process of Passing a Bill

A Bill goes through several readings in both Houses:

First Reading – Introduction of the Bill.

Second Reading – Detailed discussion and debate.

Third Reading – Voting on the final form.

After passing in both Houses, the Bill is sent to the President for approval.

Once the President gives assent, it becomes Law.

Urgent Situations – Ordinances

Sometimes, emergencies or urgent needs do not allow the normal law-making process.

Article 123 – Power of President:

When Parliament is not in session, and urgent action is needed, the President can issue an Ordinance.

Ordinance = Law made by the President in emergencies.

It is valid for 6 weeks from the reassembly of Parliament (maximum around 6 months).

Article 213 – Power of Governor:

Similar to the power of the President at the Central level, at the State level, the Governor can issue Ordinances when the State Legislature is not in session.

Local Governance – Panchayati Raj

Article 243: It extends law-making and governance powers to the local level (villages/rural India) through Panchayati Raj Institutions.

Amendment of Laws

Laws may need changes over time.

Article 368: Gives Parliament the power to amend the Constitution by adding, changing, or removing provisions.

Limits on Law-Making Power

Amendments cannot destroy the basic structure of the Constitution or take away Fundamental Rights.

Example: Keshavananda Bharati vs State of Kerala (1973) – Supreme Court ruled that Parliament cannot amend the Constitution in a way that violates Fundamental Rights.

Role of Judiciary

Even with these checks, disputes arise.

The Courts (Judiciary) interpret laws, check validity, and ensure that they are not against the Constitution.

Quick Recap for Exams

Types of Bills: Government Bill & Private Member’s Bill.

Article 107: Bills can start in either House.

Article 109: Money Bills only in Lok Sabha.

Article 123 & 213: President/Governor can issue Ordinances in emergencies.

Article 243: Local governance through Panchayati Raj.

Article 368: Parliament can amend the Constitution.

Keshavananda Bharati case (1973): No law or amendment can violate Fundamental Rights or basic structure.

The law-making process in India is firmly rooted in the Constitution of India, which clearly defines the roles of Parliament and State Legislatures. Through Articles 245 to 254, powers are divided into the Union List, State List, and Concurrent List, ensuring a balance of authority.

Laws are introduced as Bills, undergo detailed scrutiny in both Houses, and receive the President’s assent before becoming Acts. In urgent situations, Ordinances provide temporary solutions. At the same time, Articles 243 and 368 show how governance is extended to local levels and how laws can be amended to meet future needs.

However, the Supreme Court acts as a guardian, ensuring no law violates the Fundamental Rights or the basic structure of the Constitution.

Question and Answers

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Fill in the Blanks

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True or False

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Conclusion

That’s it for lesson 1.2. Now that you are familiar with lesson 1.2, let’s move on to Lesson 1.3, where you will learn about the Sources of Law beyond the Legislature, such as customs, judicial decisions, and professional practices.

You can test your knowledge and understanding of the lesson by taking advantage of our MCQ Practice Questions (MCQs).

Let us know if you have any questions or doubts in the comments section.