Business Standard

Governance by disguised legislation

The tyranny of circulars must end to ensure democratic legitimacy of laws and ease of doing business

Governance by disguised legislation
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Illustration: Binay Sinha

M S SahooSumit Agrawal
A judgment dated April 4 of the Bombay High Court struck down a few clauses of a circular issued by the Insolvency and Bankruptcy Board of India (IBBI) on the grounds that these clauses prescribed legal norms beyond the liquidation process regulations. It, however, observed that it would indeed be feasible for the IBBI, in its legislative wisdom, to propose the contents of those very clauses as an amendment to the regulations, following the due process of making regulations.

An order dated April 10, 2024, of the Karnataka High Court obliterated a circular issued by the Central government that imposed a
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