Cairn threatens to enforce arbitration award against Indian assets overseasJanuary 25, 2021
Cairn Energy has begun to take steps to identify Indian assets overseas against which it can enforce the $1.2 billion award it won last month in a treaty arbitration case against the South Asian nation, according to a letter seen by Reuters.
Cairn was awarded damages of over $1.2 billion plus interest and costs in the long-drawn tussle over a tax dispute and the Indian government is now liable to make this payment. An Indian official, however, said at the time the government would likely challenge the order.
If India does not comply with the order it would be a violation of international rules on arbitral awards, commonly called the New York Convention, Cairn said in a letter addressed to the Indian High Commission in London.
A copy of the letter was also sent to the finance and external affairs ministries in New Delhi.
“As India is a signatory to the New York Convention, the award can be enforced against Indian assets in numerous jurisdictions around the world for which the necessary preparations have been put in place,” Cairn said.
Cairn Energy and India’s finance and external affairs ministries did not immediately reply to a request for comment.