Section 21A of the Commercial Courts Act, 2015: Power of Central Government to Make Rules

Section 21A authorises the Central Government to make rules by notification for carrying out the provisions of the Commercial Courts Act, 2015. The provision is especially important for the procedure governing pre-institution mediation under Section 12A.

Legal context: Section 21A was inserted by the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Act, 2018. It provides the statutory rule-making foundation for matters including pre-institution mediation.

Text of Section 21A

21A. Power of Central Government to make rules.

(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for or any of the following matters, namely:-

(a) the manner and procedure of pre-institution mediation under sub-section (1) of section 12A;

(b) any other matter which is required to be, or may be, prescribed or in respect of which provision is to be made by rules made by the Central Government.

(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session, or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule, or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Meaning and Scope of Section 21A

1. General rule-making power

Sub-section (1) gives the Central Government a general power to frame subordinate legislation for implementing the Commercial Courts Act. The rules must be made by notification and must remain within the authority granted by the Act.

2. Rules for pre-institution mediation under Section 12A

Clause (a) of sub-section (2) specifically authorises rules governing the manner and procedure of pre-institution mediation under Section 12A. The Central Government exercised this power through the Commercial Courts (Pre-Institution Mediation and Settlement) Rules, 2018, which were later amended.

3. Other matters that may be prescribed

Clause (b) enables the Central Government to make rules on any other matter that the Commercial Courts Act requires or permits to be prescribed. This allows procedural details to be addressed through rules without repeatedly amending the parent Act.

4. Parliamentary control over rules

Sub-section (3) requires rules made under the Act to be placed before both Houses of Parliament for a total period of thirty days. Parliament may agree to modify a rule or decide that it should not continue. Any modification or annulment does not invalidate actions already validly taken under the rule before that change.

Why Section 21A Matters in Commercial Litigation

It supplies the statutory authority for Central Government rules under the Commercial Courts Act.
It directly supports the procedural framework for pre-institution mediation under Section 12A.
It permits detailed procedural requirements to be prescribed through subordinate legislation.
It subjects Central Government rules to Parliamentary scrutiny through the laying procedure in sub-section (3).

Related Provisions

For a complete understanding of Section 21A, also read Section 12A - Pre-Institution Mediation and Settlement and Section 21 - Act to have overriding effect.

Page reviewed and updated: 14 September 2026.