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Section 29: Power of Central Government to make rules

Micro, Small and Medium Enterprises Development Act, 2006 • Official Statutory Text & Practice Guide

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Act 27 of 2006
Section 28 All 32 Sections of MSMED Act Section 30
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Legal Commentary & Landmark Judgments: Section 29

Section 29 confers broad subordinate legislative powers on the Central Government to make rules carrying out the statutory purposes and provisions of the MSMED Act.

  • General Subordinate Legislative Authority: Central Government may, by notification, make rules to implement all statutory provisions across the Act.
  • Specific Enumerated Rule-Making Subjects: Under Section 29(2), rules may regulate allowances and fees of Board members, powers and duties of officers, procedures for fund administration, and procurement preferences.
  • Condition of Prior Publication & Notification: Rules must be notified in the Official Gazette and are subject to mandatory parliamentary scrutiny under Section 31.
Key Landmark Precedents:
  • Kerala State Electricity Board v. Indian Aluminium Co. Ltd. (1976) 1 SCC 466: The Supreme Court held that subordinate legislation must strictly conform to the scope and object of the parent Act; any rule transcending the statutory bounds is ultra vires and void.
  • Cellular Operators Association of India v. TRAI (2016) 7 SCC 703: Reaffirmed that delegated legislation can be struck down if it is manifestly arbitrary, ultra vires the enabling statute, or in conflict with constitutional guarantees.
Courtroom Practice & Strategic Litigation Guidance:

When challenging an administrative notification or rule issued by the Central Government under Section 29 (such as sudden re-categorization of retail and wholesale traders), scrutinize whether the rule contradicts any express provision of the parent Act or exceeds the delegated authority conferred by Section 29.

Section 28 All 32 Sections of MSMED Act Section 30