Cairn goes to US court against India
Cairn Energy has filed a case in a US district court to enforce a $1.2 billion arbitration award it won in a tax dispute against India, a court document showed, ratcheting up pressure on the government to pay its dues. In December, an arbitration body awarded the British firm damages of more than $1.2 billion plus interest and costs. The tribunal ruled India breached an investment treaty with Britain and said New Delhi was liable to pay. The case marked a first step in Cairn’s efforts towards recovering its dues, potentially by seizing Indian assets, if the government did not pay, a source with knowledge of the arbitration case told Reuters. “If Cairn wins the case, it will be a step towards attaching and seizing Indian assets overseas, especially in the US,” the source said.
NEW DELHI: Cairn Energy has filed a case in a US district court to enforce a $1.2 billion arbitration award it won in a tax dispute against India, a court document showed, ratcheting up pressure on the government to pay its dues.
In December, an arbitration body awarded the British firm damages of more than $1.2 billion plus interest and costs. The tribunal ruled India breached an investment treaty with Britain and said New Delhi was liable to pay.
Cairn asked the US court to recognise and confirm the award, including payments due since 2014 and interest compounded semi-annually, according to the February 12 filing seen by Reuters.
The case marked a first step in Cairn’s efforts towards recovering its dues, potentially by seizing Indian assets, if the government did not pay, a person with knowledge of the arbitration case told Reuters. “If Cairn wins the case, it will be a step towards attaching and seizing Indian assets overseas, especially in the US,” the person said.
India’s finance and external affairs ministries did not immediately respond to requests for comment. Cairn aims to enforce the award under international arbitration rules, commonly called the New York Convention, the court filing showed.