One of the Europe’s leading independent oil and gas exploitation and development companies, Cairn Energy PLC filed a case in the US district court against the Indian government to pay its dues. Cairn Energy claims to enforce a dollar 1.2 billion arbitration award, it won in a tax dispute against India.
In December 2020, an agreement rewarded the Cairn Energy damages including the costs and interests of more than dollar 1.2 billion. The court said that India violated the law in an investment treaty with Britain and added that government at New Delhi is responsible to pay the amount.
Cairn stated at the US court that the payment is due since 2014 and the interests have been applied compounded semi-annually according to the filing seen by the agency. The company asked the US court to confirm and recognize the reward.
According to the sources, if the Cairn Energy wins the case and the Indian government did not pay the award, then a strict action will be taken towards seizing Indian assets overseas, especially in the US.
Reuters reported last month that Cairn Energy was identifying what all could be seized in absence of a settlement. Some of the Indian overseas assets which could be seized according to the company include Air India, Indian Ships and bank accounts too.
Cairn aims to enforce award under the New York convention and the court filing showed that the company wants to recover losses caused by India’s unfair treatment of their investments.
A strict action could have been taken by Cairn due to no response from the finance minister and the ministry of external affairs of India on a post on Twitter. A post from February 9th states that Cairn’s CEO looks forward to meet India’s finance minister in Delhi.
