No Bar On Arbitrator To Allow Withdrawal Of Claims Provided Legitimate Interests Of Other Party Are Not Prejudiced: Bombay High Court

The Bombay High Court ruled that an arbitrator is not barred from allowing the withdrawal of claims, provided that the legitimate interests of the other party are not prejudiced. The court clarified that arbitration proceedings are flexible and that parties should generally be allowed to withdraw their claims if it does not unfairly disadvantage the respondent. This promotes efficiency and allows parties to reassess their positions during arbitration.