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Cairn Energy sues Air India to enforce $1.2 bn arbitration award: Report

The move ratchets up pressure on India's government to pay the sum of $1.2 billion plus interest and costs that the British firm Cairn was awarded by an arbitration tribunal in December

Topics
Cairn Energy | Air India | Arbitration

Reuters 

Air India, aircraft, flights
The move ratchets up pressure on India's government to pay the sum of $1.2 billion plus interest and costs that the British firm Cairn was awarded by an arbitration tribunal in December.

has sued India's flagship carrier to enforce a $1.2 billion award that it won in a tax dispute against India, according to a US District Court filing reviewed by Reuters.

The move ratchets up pressure on India's government to pay the sum of $1.2 billion plus interest and costs that the British firm Cairn was awarded by an tribunal in December.

The body ruled India breached an investment treaty with Britain and said New Delhi was liable to pay.

Cairn filed the lawsuit on Friday in the US District Court for the Southern District of New York, seeking to make liable for the judgement that was awarded to Cairn. The lawsuit argued that the carrier as a state-owned company, is "legally indistinct from the state itself."

"The nominal distinction between India and is illusory and serves only to aid India in improperly shielding its assets from creditors like (Cairn)," the filing said.

Air India and the Indian government did not immediately respond to requests seeking comment.

In February, Cairn filed a separate case in a US court to recognise and confirm the award, including payments due since 2014 and interest compounded semi-annually.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Sat, May 15 2021. 12:12 IST
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