Cairn Energy case: Europe’s main participant in oil and fuel wins USD 1.4 billion arbitration award

Image Source : PTI Cairn Energy case: Europe’s main participant in oil and fuel wins USD 1.4 billion arbitration award
In a significant enhance to Cairn Energy, courts in 5 international locations, together with the US and the UK, have given recognition to an arbitration award that requested India to return $1.4 billion. According to specialists, this opens the avenue for Cairn to grab Indian belongings in these international locations if India doesn’t pay the award. Cairn Energy had moved the courts in 9 international locations to implement the award in opposition to India, which the corporate gained after a dispute over a retrospective capital features tax.
The December 21 award from the Permanent Court of Arbitration within the Netherlands has been recognised and confirmed by the courts within the US, the UK, the Netherlands, Canada, and France and Cairn has began the method of registering the award in Singapore, Japan, the UAE and Cayman Islands.
The registration of the award is step one in direction of its enforcement if the award shouldn’t be paid.
Earlier in February, Cairn India had mentioned that it has mentioned plenty of proposals with the purpose of discovering a swift decision that could possibly be mutually acceptable to the Government of India and the pursuits of Cairn’s shareholders.
An worldwide arbitration seated in The Hague and constituted underneath the phrases of the UK India Bilateral Investment Treaty has dominated conclusively on the matter and issued a remaining and binding award in Cairn’s favour, ordering the refund of the worth of the belongings taken, being $1.2 billion, plus important curiosity and prices.

The arbitration additionally dominated decisively that this matter falls inside the jurisdiction of the UK-India Treaty, having heard the arguments from the events on the topic.
Cairn has loved a protracted and profitable historical past of working in India, investing billions of {dollars}, bringing employment, and benefiting native communities.
“The business we created in India has generated more than $20 billion in revenues for the government. The freezing of our assets in 2014 to enforce a retrospective tax measure has been extremely negative for all parties, and we are very keen to be able to put this legacy matter behind us and move forward positively,” Cairn India mentioned.
“We have had cordial and constructive discussions in Delhi over the last few days with officials from the Ministry of Finance. Notwithstanding and without prejudice to our rights under the international arbitration award, we have discussed a number of proposals with the aim of finding a swift resolution that could be mutually acceptable to the Government of India and the interests of Cairn’s shareholders,” it added.
“Assuming such a resolution can be achieved, we look forward to being able to move on to further opportunities to invest in India which continues to import the majority of the energy sources it consumes. We remain hopeful that an acceptable solution can be found, in order to avoid further prolonging and exacerbating this negative issue for all parties. However, we have also been clear that we must continue to take all necessary steps to protect the interests of our shareholders,” Cairn India mentioned.
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