Supreme Court Asks Why Draft Commercial Courts Rules Remain Unnotified, Floats District Execution Cells as Fix

A bench of Justices J.B. Pardiwala and Pankaj Mithal questions the Union’s delay in notifying the 2021 draft rules and asks all High Courts whether they will act independently.

While hearing miscellaneous applications in a civil appeal, a Supreme Court bench of Justice J.B. Pardiwala and Justice Pankaj Mithal took notice of a set of draft rules that the Ministry of Law and Justice prepared years ago but has never brought into force. The draft Commercial Courts Rules, 2021 — produced by a Task Force on “Ease of Doing Business” and drafted with the assistance of the Delhi High Court — contain a detailed framework for the execution of decrees, including the creation of dedicated District Execution Cells in every judicial district. The Court, on 25 May 2026, directed the Additional Solicitor General to explain the delay and asked every High Court in the country to state whether it would consider establishing such cells on its own authority under Article 227 of the Constitution.

How the Issue Arose in a Civil Appeal

The proceedings before the Court are Miscellaneous Application Nos. 1889-1891 of 2025 arising out of Civil Appeal Nos. 3640-3642 of 2025, in the matter of Periyammal (Dead Thr. Lrs.) & Ors. v. V. Rajamani & Anr. The order does not detail the underlying civil dispute. What the bench did record is that, in the course of these proceedings, it came to the Court’s notice that the draft Commercial Courts Rules, 2021 exist in finalised form but have not been notified.

The Court described the draft as an initiative of the Ministry of Law and Justice, produced by a Task Force focused on ease of doing business. The task of actually drafting the rules was outsourced to the Delhi High Court. A Committee of the Department of Justice was also formed for simplification of rules and forms under the Commercial Courts Act. Despite this institutional effort, the rules have not been brought into force.

What Chapter XII of the Draft Rules Provides

The bench reproduced Chapter XII of the draft Rules, 2021 in full. Titled “Execution of Decree and Establishment of District Execution Cells,” the chapter sets out a step-by-step mechanism that would operate alongside the existing Code of Civil Procedure.

Under Rule 47, a Court Researcher is required to prepare an execution memorandum as soon as a decree is passed and place it before the Court once the limitation period for appeal expires. Rule 48 then requires the Court to proceed to execute the decree suo motu, or on application, immediately on expiry of that limitation period.

Rule 50 deals with the method of execution. The Court is required to direct the judgment debtor to furnish details of assets and liabilities on affidavit within fifteen days. If the debtor does not comply and the information available is sufficient, the Execution Court may issue warrants of attachment of movable or immovable properties. The Court may also take assistance from the District Execution Cell by sending attested copies of the judgment, decree, and relevant schedules.

Rule 51 is the provision the bench focused on most closely. It requires every High Court to constitute a dedicated District Execution Cell in all judicial districts. The Cell is to function under the Nyaya Mitra Scheme of the Department of Justice, under the administrative control of the Principal District Judge. Its composition is prescribed in detail:

• A Member Secretary — a retired judicial officer or retired Class I Government officer with a legal background, responsible for guiding decree holders and overseeing execution of attachment warrants under Order XXI of the Code.
• A Member (Banking) — a serving officer of a nationalised bank, not below the rank of Manager, to assist in locating bank accounts and other liquidated assets of the judgment debtor.
• A Member (Revenue) — an officer from Revenue Services, not below the rank of Tehsildar, to assist in locating immovable properties of the judgment debtor within the district, state, or any other state.
• A Member (Police) — a State Police officer not below the rank of Inspector, to assist in procuring police assistance for attachment, possession, and sale of tangible properties.

District Court Administration is required to provide sitting space within the court complex and support staff including a Section Officer, Stenographer, and Multi-Tasking Staff.

Rule 52 requires the District Execution Cell, on receipt of orders from the Executing Court, to prepare an Execution Plan within fifteen days, extendable by another fifteen days on sufficient cause. Rule 53 obliges any department, institution, or organisation to share complete information about the judgment debtor’s assets and whereabouts on a written request from the Member Secretary or any Member of the Cell. Rule 54 clarifies that these provisions are in addition to, and not in derogation of, the Code of Civil Procedure as applicable to commercial disputes.

The Court’s Concern About Execution Delays

The bench stated plainly that it is “already encountering a huge challenge” in the effective and expeditious disposal of execution petitions across the country. It expressed the view that the establishment of District Execution Cells in all judicial districts may help address this challenge.

The Court then posed two distinct questions. First, it asked the Union of India to explain why the draft Rules, 2021 have not been notified despite having been prepared with a specific purpose. Second, it raised the possibility that if the Union is not inclined to notify the rules in the near future, High Courts may act on their own. The bench observed that High Courts, in exercise of their supervisory jurisdiction under Article 227 of the Constitution, may consider establishing District Execution Cells in accordance with Rule 51 of Chapter XII of the draft Rules, 2021.

The Court said it wished to know the views of all High Courts on this question.

Directions to the Additional Solicitor General and High Courts

The bench directed Ms. Aishwarya Bhati, Additional Solicitor General, to take appropriate instructions from the Ministry of Law and Justice and revert on the next date of hearing. The Registry was directed to inform Ms. Bhati of the order at the earliest.

The Registry was also directed to forward a copy of the order to the Registrar General of every High Court in the country. Each Registrar General is required to place the order before the Chief Justice of the respective High Court. The Court said it wishes to know the views of all High Courts on whether they would consider establishing District Execution Cells under Article 227.

Outcome

The matter is listed for hearing on 19 August 2026 for the limited purpose of receiving the Union’s response on the status of the draft Commercial Courts Rules, 2021 and the views of the High Courts on the proposed District Execution Cell framework. The order was passed on 25 May 2026 by Justice J.B. Pardiwala and Justice Pankaj Mithal.