D S Textiles vs IIFL Finance Limited

Judgment text excerpt

20, 75,76-ARBP(L)-12097-2026 -doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ARBITRATION PETITION (L) NO. 12097 OF 2026 D S Textiles …Petitioner Versus IIFL Finance Limited …Respondent WITH ARBITRATION PETITION (L) NO. 12128 OF 2026 Madhuram Fabrics Pvt Ltd …Petitioner Versus IIFL Finance Limited …Respondent WITH ARBITRATION PETITION (L) NO. 12154 OF 2026 P R Packing Service …Petitioner Versus IIFL Finance Limited …Respondent Mr. Pratik Barot a/w Adv Angel Pandey i/b Adv. Kruti Bhavsar, for the Petitioner in ARBP(L)/12097/2026, ARBP(L)/12128/2026 & ARBP(L)/12154/2026. Ms. Mitali More, Officer of IIFL, is present. CORAM : SOMASEKHAR SUNDARESAN, J. DATE : APRIL 30, 2026 Oral Judgement: Page 1 of 12 April 30, 2026 Rutuja Borse 20, 75,76-ARBP(L)-12097-2026 -doc 1. Each of the captioned Petitions is yet another case of a non-banking finance company unilaterally appointing an arbitrator who has proceeded to pass urgent interlocutory orders without any description as to how the arbitral tribunal came to be constituted. 2. Learned Advocate for the Respondent submits that she has no instructions in the matter other than to state that arbitration proceedings are being withdrawn and the Petition may be disposed of as infructuous. 3. An increasing trend is being seen in a number of matters, in particular by non-banking financial companies and even scheduled commercial banks that are themselves listed companies, requiring them to be mindful of having greater intensity of promise to be compliant with the law, where a unilateral arbitrator is appointed but purporting to appoint the arbitrator through an “institution” or an algorithm-based selection of arbitrator, it is hoped that the inherent illegality in unilateral-appointment is magically cleanse