Cairn Energy has filed a case in a U.S. district court docket to implement a $1.2 billion arbitration award it gained in a tax dispute in opposition to India, a court docket doc confirmed, ratcheting up strain on the federal government to pay its dues. In December, an arbitration physique awarded the British agency damages of greater than $1.2 billion plus curiosity and prices. The tribunal dominated India breached an funding treaty with Britain and stated New Delhi was liable to pay. Cairn requested the U.S. court docket to recognise and ensure the award, together with funds due since 2014 and curiosity compounded semi-annually, in accordance with the Feb. 12 submitting seen by Reuters.
The case marked a primary step in Cairn’s efforts in direction of recovering its dues, probably by seizing Indian property, if the federal government didn’t pay, a supply with data of the arbitration case informed Reuters.
“If Cairn wins the case, it will be a step towards attaching and seizing Indian assets overseas, especially in the U.S.,” the supply stated. Reuters reported final month that Cairn was figuring out India’s abroad property, together with financial institution accounts and even Air India planes or Indian ships, that could possibly be seized within the absence of a settlement.
Cairn declined to remark however pointed to a Feb. 9 Twitter put up the place it stated Chief Executive Simon Thomson was wanting ahead to assembly India’s Finance Minister in Delhi subsequent week. “We would request, along with others, that the Indian government move swiftly to adhere to the award that has been given,” Thomson stated within the video posted on Twitter by Cairn.
“It is important for our shareholders who are global financial institutions and who want to see a positive investment climate in India. I am sure that in working together with the government we can swiftly draw this to conclusion and reassure those investors,” he stated.
India’s finance and exterior affairs ministries didn’t instantly reply to requests for remark. Cairn goals to implement the award below worldwide arbitration guidelines, generally referred to as the New York Convention, and get better losses attributable to India’s “unfair and inequitable treatment of their investments”, the court docket submitting confirmed.
The firm has registered its declare in opposition to India within the Netherlands and France, telling regulators within the two nations that they might obtain court docket orders to grab of some Indian property, and the agency was making ready to do the identical in Canada and United States, Reuters reported final month. India misplaced one other main worldwide arbitration case final yr in opposition to Vodafone over a $2 billion retrospective tax dispute.
The authorities has challenged the arbitration verdict within the Vodafone case. It has but to say the way it will proceed in Cairn’s case the place it has to make a big fee.
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