Britain’s Cairn files case in US to push India to pay $1.2 billion award

Cairn Electrical power has submitted a situation in a U.S. district court docket to enforce a $one.two billion arbitration award it received in a tax dispute towards India, a court docket doc confirmed, ratcheting up pressure on the government to pay back its dues.

In December, an arbitration overall body awarded the British company damages of extra than $one.two billion in addition fascination and prices. The tribunal dominated India breached an investment treaty with Britain and mentioned New Delhi was liable to pay back.

Cairn requested the U.S. court docket to recognise and validate the award, which includes payments because of because 2014 and fascination compounded semi-each year, in accordance to the Feb. twelve submitting found by Reuters.

The situation marked a 1st step in Cairn’s endeavours to recovering its dues, likely by seizing Indian assets, if the government did not pay back, a resource with information of the arbitration situation informed Reuters.

“If Cairn wins the situation, it will be a step to attaching and seizing Indian assets overseas, primarily in the U.S.,” the resource mentioned.

Reuters reported previous month that Cairn was determining India’s overseas assets, which includes financial institution accounts and even Air India planes or Indian ships, that could be seized in the absence of a settlement.

Cairn declined to remark but pointed to a Feb. nine Twitter write-up where by it mentioned Main Govt Simon Thomson was searching forward to meeting India’s Finance Minister in Delhi upcoming 7 days.

“We would request, together with others, that the Indian government go quickly to adhere to the award that has been offered,” Thomson mentioned in the online video posted on Twitter by Cairn.

“It is vital for our shareholders who are world-wide economic institutions and who want to see a optimistic investment weather in India. I am certain that in working together with the government we can quickly draw this to summary and reassure those people buyers,” he mentioned.

India’s finance and external affairs ministries did not right away respond to requests for remark.

Cairn aims to enforce the award under global arbitration procedures, generally known as the New York Conference, and get better losses brought about by India’s “unfair and inequitable cure of their investments”, the court docket submitting confirmed.

The company has registered its assert towards India in the Netherlands and France, telling regulators in the two nations around the world that they could obtain court docket orders to seize of some Indian assets, and the company was planning to do the exact same in Canada and United States, Reuters reported previous month.

India misplaced yet another key global arbitration situation previous yr towards Vodafone above a $two billion retrospective tax dispute.

The government has challenged the arbitration verdict in the Vodafone situation. It has however to say how it will commence in Cairn’s situation where by it has to make a substantial payment.

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