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Section 22: Power to remove difficulties

Commercial Courts Act, 2015 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Commercial Court / High Court
Act 4 of 2016
Section 21A All 23 Sections The Schedule (CPC Amendments) Section 23
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Commercial Court Sec 2

Legal Commentary & Landmark Judgments: Section 22

Section 22 of the Commercial Courts Act, 2015 empowers the Central Government to issue orders to remove difficulties arising in giving effect to the provisions of the Act, subject to a two-year sunset clause.

  • Removal of Difficulties Clause: If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make provisions not inconsistent with the Act.
  • Sunset Clause: No such order shall be made after the expiry of a period of two years from the date of commencement of the Act.
  • Laying Before Parliament: Every order made under this section must be laid before each House of Parliament.
  • Executive Legislative Boundary: Cannot be used to modify essential legislative policy or alter the definition of commercial dispute.
Key Landmark Precedents:
  • Madeva Upendra Sinai v. Union of India, (1975) 3 SCC 765: The Constitution Bench established that 'removal of difficulties' clauses can only be invoked to iron out minor operational hitches, not to rewrite substantive provisions of the parent statute.
  • Patil Automation (P) Ltd. v. Rakheja Engineers (P) Ltd., (2022) 10 SCC 1: Traced the statutory timeline and legislative amendments following the initial transition period.
Courtroom Practice & Strategic Litigation Guidance:

Executive circulars purporting to alter commercial court jurisdiction cannot override the statutory text; challenge any unauthorized executive administrative modification as ultra vires Section 22.

Section 21A All 23 Sections The Schedule (CPC Amendments) Section 23