PremiumThe assertion about India defending its assets abroad comes after reports about Cairn Energy moving a US court to enforce the arbitration award by making state-owned carrier Air India a party.
New Delhi: The Indian government has engaged a legal team to defend any action by British oil company Cairn Energy Plc in enforcing an arbitration award of over $1.2 billion that the company recently won in a tax matter, a person briefed on the development said.
The assertion about India defending its assets abroad comes after reports about Cairn Energy moving a US court to enforce the arbitration award by making state-owned carrier Air India a party. Cairn Energy Plc on Friday moved the US Court for the Southern District of New York against Air India, showed a court filing.
“The government or the public sector undertaking (Air India) have not received any such notice. As and when any such notice is received, the government or the concerned organization shall take all necessary steps to defend against any such illegal enforcement action. It may be mentioned that government has challenged the award in the case of Cairn in the appropriate court in the Hague and the Government is confident that the award will be set aside," said the person quoted above.
The person also said that the Indian government has engaged a team which is ready to defend against any enforcement action initiated by Cairn Energy anywhere in the world.
An email sent to Cairn Energy and the finance ministry on Saturday remained unanswered at the time of publishing.
Air India has been making losses and has been on a state bail out for many years. The national carrier is currently on the block. Past attempts to sell the company have not been successful given its accumulated debt and the competition in the aviation industry.
Cairn Energy has been trying to enforce the arbitration award but the Indian government is legally opposing the move.
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