An Act is a bill that was presented in a State legislative home/Parliament of India, passed by both the houses of the State legislature or Parliament, sent for accent of the State Governor or the President of India, and then it becomes an Act.
Reproducing the original Article 123:Whereas ordinance is a legal order or law made by the State Government or the Union Government when the Legislature or Parliament is not in session, this a temporary arrangement made by the said government with regard to such a law & its implementation in the State or the whole of the country as the case may be. Such ordinance is legal & can be implemented for the time being, but it has to be passed by the State legislature or the parliament within six months & made as a proper Act.
Central Government Act: Article 123 in The Constitution Of India 1949
123. Power of President to promulgate Ordinances during recess of Parliament
(1) If at any time, except when both Houses of Parliament are in session, the President is satisfied that circumstances exist which render it necessary for him to take immediate action, he may promulgate such Ordinance as the circumstances appear to him to require(2) An Ordinance promulgated under this article shall have the same force and effect as an Act of Parliament, but every such Ordinance
(a) shall be laid before both House of Parliament and shall cease to operate at the expiration of six weeks from the reassemble of Parliament, or, if before the expiration of that period resolutions disapproving it are passed by both Houses, upon the passing of the second of those resolutions; and(b) may be withdrawn at any time by the President Explanation Where the Houses of Parliament are summoned to reassemble on different dates, the period of six weeks shall be reckoned from the later of those dates for the purposes of this clause(3) If and so far as an Ordinance under this article makes any provision which Parliament would not under this Constitution be competent to enact, it shall be void CHAPTER IV THE UNION JUDICIARY
Recent Instance: Passing of Food security bill 2013
Problem: This bill grants a very unfair way to pass any bill. Like in our case, the President Pranab Mukherjee belongs to the same party as the ruling party and when he has got this special privilege to pass any bill at the ruling party's will it seems some where it is wrong. He is always going to be biased for the party.
Proposition: If we put a condition that the president should be a neutral candidate for enjoying this privilege. We could grant this power to the president when he doesn't belong to any of the ruling party or the opposition. And If President is not a neutral candidate then Passing of bill only through the original way of "Debates and Voting" should be adopted.