PTIRelated
A US court has issued summons to the government of India in a case filed by Energy Plc to implement a $1.2 billion arbitration award it had won against India, as per the court filings.
Cairn Energy Plc and Cairn UK Holdings Ltd filed a petition in a Washington DC district court on February 12 to confirm the arbitration award in a bid to mount pressure on India to pay up.
On February 16, Judge Richard J Leon of the District of Columbia district court issued summons electronically to India, days ahead of Cairn CEO Simon Thomson’s planned Thursday meeting with Finance Secretary Ajay Bhushan Pandey in New Delhi. Thomson is also hoping to meet Finance Minister Nirmala Sitharaman this week to persuade her to honour the arbitration award and swiftly implement it.
The government hasn’t yet said if it planned to pay up or appeal the award. Cairn’s strategy has been to increase pressure on the government to quickly close the matter and receive all that is due to it. If the government refuses to pay up, Cairn would need orders from a court with valid jurisdiction to enforce the award against Indian assets overseas.
Cairn Energy Plc and Cairn UK Holdings Ltd filed a petition in a Washington DC district court on February 12 to confirm the arbitration award in a bid to mount pressure on India to pay up.
On February 16, Judge Richard J Leon of the District of Columbia district court issued summons electronically to India, days ahead of Cairn CEO Simon Thomson’s planned Thursday meeting with Finance Secretary Ajay Bhushan Pandey in New Delhi. Thomson is also hoping to meet Finance Minister Nirmala Sitharaman this week to persuade her to honour the arbitration award and swiftly implement it.
The government hasn’t yet said if it planned to pay up or appeal the award. Cairn’s strategy has been to increase pressure on the government to quickly close the matter and receive all that is due to it. If the government refuses to pay up, Cairn would need orders from a court with valid jurisdiction to enforce the award against Indian assets overseas.
Cairn has also filed petitions in the courts in the UK and the Netherlands, as per an agency report.
( Originally published on Feb 16, 2021 )
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67 Comments on this Story
 | TS Darbari1 hour ago TS Darbari -The ill-reputed retrospective taxation by India in 2012 spurred three investment treaty arbitration cases against India, viz. (i) Vodafone International Holdings BV v. The Republic of India (Vodafone case); (ii) Cairn Energy Plc and Cairn UK Holdings Limited v The Republic of India (Cairn case); and (iii) Vedanta Resources Plc v. The Republic of India (Vedanta case). In the past three months, two of the three cases (Vodafone case and Cairn case) have been ruled in favor of the foreign investors against India. The root of this dispute traces back to the ill-reputed retrospective taxation by India in 2012. Who is TS Darbari ? - TS Darbari is a top management professional, with several years of rich & diversified experience in Corporate Strategy, New Business Development, Sales & Marketing, Commercial Operations, Project Management, Financial Management and Strategic Alliances. #who_is_TS_Darbari #TS_Darbari #Ts_Darbari_Blog #TS_Darbari_News #Ts_Darbari_Views #Ts_Darbari_Blogger #TS_Darbari_Comments #Ts_Darbari_Opinion #About_TS_Darbari #TS_Darbari_Articles #Politics #Views #Comments #who_is_TS_Darbari #About_TS_Darbari |
| MaKo 1 hour ago Stupid retroactive business - Our pathetic attempt at inventing a time machine. Our time and efforts are better spent encouraging business, not extorting money from businesses. |
| M.L.GUPTA1 hour ago The bitter reality of our tax laws is that they suffer from "babu mentality" as the politician has failed to exhibit vision or mission. I give one very simple example here- if an Indian resident sells his house, he must pay LTCG due.S/he can buy another house or construct another house within 2/3 years respectively. For the first 6 months the proceeds can be kept in SB a/c or FD with a PSB. If the decision is to buy a house/construct one the proceeds must be kept only in a Special Savings Bank A/c with a Public Sector Bank. Nothing harassing. The compulsion of only Savings Bank is the harassment. Why should the FD be not allowed with the PSB? There is no justification. The matter was brought to the notice of the PMO as also the Finance Minister, who have neither amended this irritating provision nor justified it so far. Even the delay caused by COVID-19 is not exempted by the 2/3 year restriction. Indian tax laws suffer the Babu mentality as the Babu mind draws masochistic pleasure in harassing the citizen because they know clarifications are given by CAs or lawyers or party syndicates or Babu community! They are called Babu because they have no sense how one earns Rs 100 after investing how much capital, time, mind, managerial and entrepreneurial talent because they simply spend millions on wasteful expenses like inaugurations as the bills are picked up by the poor tax payers. Until one understands how money is earned s/he will not know it. |
