Sections 21 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 21 to 23 close the Act. Section 21 gives the Act overriding effect. Section 21A empowers the Central Government to make rules, and names the manner and procedure of pre-institution mediation as one subject of those rules. Section 22 lets the Central Government remove difficulties for a limited period, and section 23 repeals an Ordinance of 2015 and saves what was done under it. This article reads them as amended up to 3 May 2018, as per the text consulted, for readers who need legal consultation on how the Act sits with other laws.
"Save as otherwise provided", the Act overrides inconsistent provisions of any other law or instrument having effect by virtue of any law (section 21). The Central Government may make rules by notification and must lay them before Parliament for thirty days (section 21A). Orders removing difficulties could not be made after two years from commencement (section 22). The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015 is repealed, and things done under it are deemed done under the corresponding provisions of this Act (section 23).
Section 21: the Act has overriding effect
"Save as otherwise provided, the provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law for the time being in force other than this Act."
- Save as otherwise provided. The Act itself carves out exceptions, such as section 11, which keeps commercial forums out of disputes where another law bars the civil court.
- Notwithstanding any other law. Inconsistent provisions of any law in force give way to this Act.
- Or any instrument. The override reaches an instrument having effect by virtue of a law. The text does not define "instrument" or name any.
The practical consequence is that, for a commercial dispute of a Specified Value, the Act's forum and procedure rules are to be applied even if another law or instrument says otherwise, except where this Act itself provides otherwise. Section 13(2) is a good example: no appeal lies "notwithstanding anything contained in any other law ... or Letters Patent". See our article on section 13.
Section 21A: power of the Central Government to make rules
Section 21A is printed within quotation marks and is marked as amended in 2018.
Sub-section (1). The Central Government may, by notification, make rules for carrying out the provisions of the Act.
Sub-section (2). "In particular, and without prejudice to the generality of the foregoing power, such rules may provide for or any of the following manners, namely" (the text prints "manners"; the sense is matters, and the slip is flagged, not corrected):
- Clause (a): "the manner and procedure of pre-institution mediation under sub-section (1) of section 12A". Clause (a) is followed by stray marks in the copy consulted.
- Clause (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.
Sub-section (3). Every rule made under the 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. If, before the expiry of the session immediately following, both Houses agree in making any modification in the rule, or agree that the rule should not be made, the rule shall have effect only in such modified form or be of no effect, as the case may be. Any modification or annulment is "without prejudice to the validity of anything previously done under that rule".
The mediation rules themselves are not in the text consulted. This article describes no step from them and states no cost of mediation. Our article on section 12A explains why they matter.
Section 21A(2)(a) as substituted by the Mediation Act, 2023
The Ninth Schedule to the Mediation Act, 2023 substitutes clause (a) of section 21A(2) so that it reads "the manner and procedure of pre-litigation mediation under sub-section (1) of section 12A". The change follows the substituted section 12A, which speaks of pre-litigation mediation. Commencement by notification, date not in the source: this article does not say which wording applies on a given date, so check the current official text. For the Mediation Act's side, see our sister article on the Ninth Schedule amendments.
Section 22: power to remove difficulties
Sub-section (1). If any difficulty arises in giving effect to the provisions of the Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the Act, as appear to it necessary or expedient for removing the difficulty. The proviso says no such order shall be made "after the expiry of a period of two years from the date of commencement of this Act".
Sub-section (2). Every such order shall be laid, as soon as may be after it is made, before each House of Parliament.
Two points stand out. The power is bound by the words "not inconsistent with the provisions of this Act". And the time limit is two years from the date of commencement, which section 1(3) fixes as deemed to be 23 October 2015. The text consulted does not list any order made under this section, and this article says nothing about whether any was made.
Section 23: repeal and savings
Sub-section (1). "The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015 is hereby repealed." The closing bracket of "(2)" in the next sub-section is split across two lines in the copy consulted, a printing feature only.
Sub-section (2). "Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act."
This is a saving clause. A step taken under the Ordinance, such as an order constituting a court or a transfer of a matter, is treated as if taken under the matching section of the Act, so it does not fall with the repeal. It works hand in hand with section 1(3), which makes the Act deemed to have come into force on 23 October 2015. Our article on sections 1 and 2 deals with the commencement rule.
The four provisions together
| Section | Subject | Key words | Time limit |
|---|---|---|---|
| 21 | Overriding effect | "Save as otherwise provided ... notwithstanding anything inconsistent" | None |
| 21A | Rules | Central Government may, by notification, make rules; laid before Parliament | Thirty days of laying, in one or more sessions |
| 22 | Removal of difficulties | Order published in the Official Gazette | No order after two years from commencement |
| 23 | Repeal and savings | Ordinance of 2015 repealed; acts done deemed done under this Act | None |
Who is affected
Anyone relying on a contract clause, High Court rule or other law that points the other way should check section 21 first. Anyone planning mediation before suit should read section 21A(2)(a) with section 12A, because the procedure comes from rules that the text consulted does not contain. Practitioners dealing with early steps taken in 2015 should read section 23.
Example. Rajdhani Steels Ltd's contract with a supplier names a different forum for disputes. Under section 21, the Act overrides inconsistent provisions in other laws and in instruments having effect by virtue of a law, save as the Act itself provides. Rajdhani's advisers read the clause, then ask whether the Act's forum rules (sections 3 to 7 and 11) displace it, rather than assuming either way.
Points to check in the text
- Section 21A(2) prints "manners" for what reads as "matters"; clause (a) is followed by stray marks.
- Section 23's "(2)" is split across two lines.
- No rules, no notification and no order under section 22 are in the text consulted.
Need help reading the Act with other laws or contracts?
If you are unsure how the Act's overriding effect interacts with your contract or another statute, see our legal consultation page.
Key takeaways
- The Act overrides inconsistent laws and instruments, save as it otherwise provides.
- The Central Government may make rules by notification; they are laid before Parliament for thirty days.
- Section 21A(2)(a) names the procedure of pre-institution mediation as a subject of rules; the Mediation Act, 2023 substitutes the clause, with commencement by notification, date not in the source.
- Orders removing difficulties could not be made after two years from commencement.
- The 2015 Ordinance is repealed and acts done under it are saved.
Read next
- Sections 1 and 2: short title, commencement and definitions
- Section 12A: pre-institution mediation and settlement
- Section 16: amendments to the Code of Civil Procedure
- The Mediation Act 2023 for commercial and trade disputes
Disclaimer: Based on a text of the Commercial Courts Act, 2015 as amended up to 3 May 2018 and on the Ninth Schedule to the Mediation Act, 2023 as enacted, as consulted on 2 October 2026. Later amendments, the current Specified Value, the pre-institution mediation rules and High Court rules should be checked. This article is general information, not legal advice; check the official text before acting.