In India, where the financial system is developing and many new regulations have to be framed (more so if we move to a principle based approach for legislation), and where the tribunals will have a significant amount of learning to do, the encouragement to appeal could paralyze the system and create distortions, as needed regulations are held up and participants exploit loopholes.
Most robust rules suggest that the reaction to the changes in the inflation gap be more than one-for-one and should exceed the reaction to changes in the output or unemployment gap. The rules also suggest that policy should be somewhat inertial.