Amir Chaudhry (Teaching) 27 November 2014

Rules framed by a statutory body have the force of law???

I need some clarification about the statutory rules/regulations.

The section 25 of the Bank Act stated as under

"25. Power of the Board to make bye-laws.–

(1) The Board may make bye-laws not inconsistent with this Act to provide for all matters for which provision is necessary or convenient for the purpose of giving effect to the provisions of this Act

(2) In particular and without prejudice to the generality of the foregoing provisions, such bye-laws may provide for all or any of the following matters, namely–".

Subsection XXV of Section 25 stated as under:-

" (xxv) the recruitment of officers and staff of the bank including the terms and conditions of their service, and the constitution and management of staff and superannuation funds for the officers and servants of the Bank"

Opeining para of the By-laws stated as under:

"In exercise of the power conferred by Section 25 of the bank Act, the Board of Directors of the bank have, with the approval of the government, made the following by-laws"

The section 25 of the by-laws stated as under:-

"25. Officers of the bank

(a) the Board of directors shall be authorized and have power to:-

(i) to frame the rules, terms and conditions of service of such officers in consultation with the goverment".

Now the Board of Director makes certain service rules in shape of service policy and compiled in book called HR Manual. This HR Maual contains the employees service rules.

My question is whether the rules framed by the Board of Directors are statutory nature/force of law or these rules also requires the approval of the government to acquire the status of statutory force.

thanks

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2 Replies

T. Kalaiselvan, Advocate (Advocate) 30 November 2014

All such changes which involves policy changes especially relating the rules of service matters of employees, have to be referred to government for their approval after which necessary changes can be made and implemented. The employees union will not allow the bank to proceed with such changes without following the laid out procedures for this purpose which includes concurrence/approval from governmental competent authority.

Amir Chaudhry (Teaching) 30 November 2014

when the statute does not require the formal approval of the gvernment...then what is the status of this rules. I have read a judgment of sukh Dev case 1975 AIR 1331, in which the court held that regulations framed under the delegated power have the force of law....what about in above referred case?

Originally posted by : T. Kalaiselvan, Advocate