Britain’s Cairn Files Case at US Court To Get India To Pay Dues

British energy major Cairn Energy had won an international arbitration case against India’s govt over a tax dispute.

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British energy major Cairn Energy on Wednesday, 23 December 2020, won an international arbitration case against the Indian government over a tax dispute. Image used for representation. 

British firm Cairn Energy has filed a case at a district court in the United States (US) for the enforcement of a $1.2 billion arbitration award that it won against India, reported Reuters, citing a court document.

This, according to Reuters comes in an intensification of pressure on the Indian government to pay its dues.

The arbitration award has been won in a tax dispute, reported Reuters.

The court filing, accessed by Reuters, reportedly shows that Cairn plans to enforce the arbitral award under the international arbitration rules, commonly known as the ‘New York Convention’, and recover losses that have occurred due to India’s “unfair and inequitable treatment of their investments”.


As per Reuters, an arbitration body had awarded Cairn damages of $1.2 billion plus interest and costs, ruling that India had breached an investment treaty with Britain and therefore was liable to pay.

Cairn, according to Reuters, has now asked the United States to recognise and confirm the award including payments that have been due since 2014 and interest compounded semi-annually.

A source with knowledge of the case reportedly said to Reuters:

“If Cairn wins the case, it will be a step towards attaching and seizing Indian assets overseas, especially in the US.”

Previously, in January, Reuters had reported that Cain was identifying India’s overseas assets.

Declining to give a comment to Reuters, Cairn did point to a 9 February Twitter post, which said that Chief Executive Officer Simon Thomson was looking forward to meeting India’s Finance Minister in Delhi “next week”.

(With inputs from Reuters.)

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