Section 12A Commercial Courts Act Aims to Make Litigation a Last Resort : Calcutta HC

The Calcutta High Court, in a case involving Section 12A of the Commercial Courts Act, emphasized that the provision intends to encourage amicable, informal, and cost-effective resolution of commercial disputes through pre-institution mediation, with litigation being the last resort. 

The court observed that urgency under Section 12A must be genuine and not a pretext to bypass mandatory mediation. 

Relying on Patil Automation Pvt. Ltd. v. Rakheja Engineers Pvt. Ltd. (2022), the court modified interim relief, allowing the appellant to utilize funds after paying Rs. 2 crores and filing an affidavit of assets, ensuring equitable treatment of creditors.