IIFL informed the Court that it had instructions to withdraw the proceedings. The judge noted that while IIFL sought to withdraw proceedings, this practice reveals a concerning pattern.
“The modus operandi is to conduct arbitration in this process and hope that in most cases the affected party may not challenge the arbitration and may instead come up with settlement terms, with the strategy resulting in recoveries,” the Court said.
However, whenever the opposite party challenges the unilateral appointment, the appointing party simply comes to Court and volunteers to have the arbitration proceedings withdrawn, the judge noted.
