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Introduction
Law
Law is a set of rules and regulations enacted by Parliament to govern people’s conduct, fostering societal order and giving individuals a sense of protection, guidance, and security in their daily lives.
The term “law” has a broad meaning. It includes various forms of legal rules created or recognised by government authorities, such as Acts, ordinances, orders, by-laws, rules, regulations, judgments of the High Courts and the Supreme Court, and authorised notices.
Broadly, law can be classified into two main types. Understanding these types helps people see how rules are created, interpreted, and applied in society, giving them greater clarity about their legal environment.

Common law is a body of legal principles developed and applied by judges when deciding cases. Unlike statutory law, it is not created directly by the legislature or set out in official statutes.
However, this does not mean that common law systems derive most of their laws solely from case law. Most democratic countries that follow the common law system also have legislative bodies at the centre of government, which regularly enact new laws. These statutes are then interpreted and applied by the judiciary in court proceedings. Judicial decisions may be followed in future cases under the doctrine of stare decisis, the legal principle of precedent.
Many areas of law, such as property law, contract law, and tort law, have traditionally developed through common law. However, modern areas such as business law, intellectual property law, and health and safety law are often based more heavily on statutes than on precedent.
By contrast, statutory law, also known as legislative law, is law passed by Parliament or another legislative authority. It consists of written or codified legislation that sets out formal rules and regulations. These laws may require certain conduct or prohibit particular behaviour by the public.
Statutory law can often be interpreted in different ways by different people. This is why relying on precedent in common law systems can be useful when the meaning of a law is disputed. When the facts of a case are unique, and there is no binding precedent, the case is known as a first impression. In such situations, the judge’s decision may help shape the law, and future cases with similar facts may be decided in a similar manner.
The main difference between common law and statutory law is that common law develops through judicial precedent, whereas the legislature enacts statutory law. Statutory law is written law enacted by the government to regulate conduct, protect citizens, and maintain order in society. If a legal issue cannot be resolved by existing precedent, a court may rely on statutory law to decide the case. When a person violates a statutory law, the government may impose a predetermined punishment that is proportionate to the nature and seriousness of the offence.
Legislative bodies usually enact statutory laws, while government agencies may issue rules and regulations under authority granted by statutes. In many cases, a judge’s decision is based on both statutory law and common law. This means that judges consider written statutes as well as relevant judicial precedents when making rulings. Therefore, both judges and lawyers must stay informed about recent statutory changes and important court decisions that may affect the development of common law.
Most Laws of the time, contract, tort, and property laws exist within common law, not statutory law. Although there may be some written statutes in these areas, a judge's decision will usually be based on precedent. Statutory law will only provide a rigid, formal interpretation of the law. Laws do not always apply easily to all situations. This is why it is beneficial for judges to refer to prior cases rather than legislation. Often, a precedent will be identified and applied to the case at hand through analogy.
Bill
A bill is the first formal step in creating a new law, serving as a proposal that allows the public and lawmakers to shape future legislation through discussion, debate, review, and approval.
After a bill is introduced in Parliament, it usually goes through several stages. First, it is presented in one House, where members discuss its purpose and main features. It may then be examined in detail, debated clause by clause, and amended if necessary. Once the first House approves it, the bill is sent to the other House, where a similar process of discussion, debate, and approval takes place.
If both Houses approve the bill, it is sent to the President for assent. After the President gives assent, the bill becomes an Act. This step-by-step process helps ensure that proposed laws are carefully examined before they become legally binding.
Act
An Act is a formal legal document enacted by the legislature, such as Parliament or a State Legislative Assembly. It sets out binding rules for specific subjects, situations, or circumstances.
In legal terms, an Act is a statute that begins as a bill. Once both Houses pass the bill through the required legislative procedure and it receives the necessary assent, it becomes an Act. An Act may create a new law or amend or repeal an existing one.
An Act contains the complete text of the legislation approved by the legislature. It includes the statutory provisions to be adopted, amended, or repealed. It may also mention the bill's origin, its purpose, and any important findings or reasons the legislature based its decision on.

Ordinance
Ordinances are temporary laws issued by the President of India on the recommendation of the Union Cabinet when Parliament is not in session. They allow the government to take urgent legislative action when necessary. An ordinance has the same force and effect as an Act of Parliament, but it must be laid before both Houses when Parliament reassembles. It ceases to operate six weeks after reassembly unless Parliament approves it. It may also cease earlier if both Houses pass resolutions disapproving it. Parliament must meet at least once every six months, which limits how long an ordinance can remain in force without legislative approval.