Air India asks US court to dismiss Cairn petition

Air India has asked a New York court to dismiss a petition filed by Britain's Cairn Energy for seizure of its assets to enforce $1.2 billion arbitral awards against the Indian government, saying the litigation was premature as an appeal against the arbitration award was still pending.

The petition by the airline, which is separate to India’s plea in a Washington court seeking dismissal of Cairn’s lawsuit to seek confirmation of the arbitral award, said the New York court lacks jurisdiction to adjudicate a “mere hypothetical question” or one that depends upon contingent events that may or may not occur.

Cairn first moved the US District Court for the District of Columbia seeking confirmation of the arbitration award and filed a plea in the New York court to seek declaration of Air India as “alter ego” of the government and so it should be made liable to pay $1.26 billion.