British energy major Cairn confirmed that it has received a notice that the Government of India has petitioned the Dutch Court of Appeal to set aside the arbitration award.
The company said, “Cairn has full confidence in its position. As previously advised, Cairn will continue to take all steps necessary in order to protect the interests of its shareholders.” This arbitration award was passed unanimously in favour of Cairn and was under UK-India Bilateral Investment Treaty.
The Permanent Court of Arbitration at The Hague ruled that India’s move to call for retrospective taxes was not right. Thus, the court ordered the Indian government to pay up USD 1.2 billion in damages to the company. The Indian government is resisting this decision. The Indian government second time in three months has refused to accept an international award.
Meanwhile, the company has approached multiple courts in the US, UK, Canada, France, Singapore, the Netherlands and three other countries to register the December 2020 arbitration tribunal verdict. Post which the company plans to attach the assets that are non-diplomatic in nature but are owned by public-sector companies or entities controlled by the Indian government in the nine countries.
Cairn has already identified Indian assets across several jurisdictions that Cairn will be seeking to seize to enforce the award. These assets will range from planes to ships, to oil and gas cargoes and bank accounts of state-owned entities.