Administrative adjudication is the process by which an administrative agency issues an affirmative, negative, injunctive, or declaratory order. The formal proceedings before an administrative agency adopt the process of rule making or adjudication. In rule making process, the policies are formulated by setting rules for the future conduct of persons governed by that agency. While in adjudication process, the agency's policies are applied to the past actions of a particular party, and it results in an order for or against that party. Both these methods are regulated by the law of administrative procedure.