CURRENT AFFAIRS | MARCH 24, 2026
The Government has introduced the Corporate Laws (Amendment) Bill 2026 in Lok Sabha, proposing amendments to the Companies Act 2013 and the LLP Act 2008. The Bill aims to streamline regulatory processes, reduce compliance burdens, and decriminalise minor corporate offences by converting them into civil penalties. CSR obligations may shift from mandatory to voluntary for smaller companies. The Bill has been referred to a 31-member Joint Parliamentary Committee.
⚖️ Constitutional & Legal Framework
- Article 245 — Vests law-making power in Parliament and state legislatures
- Article 246 — Distributes legislative competence through three Lists in Seventh Schedule
- In Re Delhi Laws Act (1951) — 7-judge bench: Parliament cannot delegate essential legislative functions; must lay down policy and guiding principles
- Rule 331, Lok Sabha Rules — Constitution of Joint Parliamentary Committees
The Bill reignites the constitutional debate on delegated legislation. Opposition parties allege it delegates essential legislative functions to the executive, violating Articles 245 and 246. In In Re Delhi Laws Act (1951), a 7-judge bench held that Parliament cannot delegate essential legislative functions — only ancillary or subordinate rule-making. The legislature must lay down policy and guiding principles; details can be filled by the executive.
🎯 CLAT Angle — Why This Matters
Delegated legislation is a perennial CLAT favourite. Legal Reasoning: Scenario where government rules exceed parent statute — apply Delhi Laws Act test. GK: Articles 245, 246, Seventh Schedule, Joint Parliamentary Committees. The separation of powers doctrine underlies the opposition’s argument.
📋 Key Facts at a Glance
| Bill | Corporate Laws (Amendment) Bill 2026 — amends Companies Act 2013 & LLP Act 2008 |
| Key reform | Decriminalisation of minor offences → civil penalties |
| Committee | 31-member Joint Parliamentary Committee (Rule 331) |
| Key precedent | In Re Delhi Laws Act (1951) — limits on delegated legislation |
| Constitutional basis | Articles 245, 246, separation of powers |
Key Terms and Definitions
| Term | Definition |
|---|---|
| Delegated Legislation | Law-making power Parliament delegates to executive to make rules, regulations, and notifications within the parent Act |
| Essential Legislative Function | Core policy-making that must remain with legislature; cannot be delegated (Delhi Laws Act) |
| Joint Parliamentary Committee | Ad hoc committee under Rule 331, comprising members from both Houses, for detailed scrutiny |
| Decriminalisation | Reclassifying criminal offences as civil wrongs, replacing imprisonment with monetary penalties |
| Separation of Powers | Doctrine dividing government into legislature, executive, and judiciary with distinct functions |
🧠 Mnemonic — “DELHI” for Delegated Legislation
Delhi Laws Act (1951) • Essential functions can’t be delegated • Legislature sets policy • Half measures (only details delegable) • Independent separation of powers
Practice Quiz — 10 CLAT-Style Questions
Click an option to reveal the answer and explanation.
📰 Source: The Indian Express, 24 March 2026 • CLAT Gurukul Daily Current Affairs
