17th May 2021 08:01
(Alliance News) - Cairn Energy PLC is suing Air India in the US to enforce a USD1.2 billion plus interest award, the Financial Times reported on Sunday.
The Edinburgh-based energy company has launched a lawsuit aimed at allowing it to seize the planes of state-owned Air India, amid a long-running tax dispute with the Indian government.
A tribunal ruled in favour of Cairn back in December, awarding the oil and gas explorer USD1.2 billion, now thought to be worth more than USD1.7 billion, in damages, plus interest and costs. It is one of a number of disputes between western companies and the government, the FT added.
The lawsuit, filed in New York on Friday, aims to establish that Air India is "the alter ego of the Republic of India and therefore jointly and severally liable for the debts and obligations of India itself", the FT noted. It is a legal process that could lead to Cairn Energy attempting to seize aircraft and other assets as part of the dispute, although talks to settle the case are continuing.
Cairn has identified USD70 billion of assets owned by the Indian government globally that could be pursued. The firm said it was "taking the necessary legal steps to protect shareholders' interests in the absence of a resolution to the arbitral award", the FT reported.
https://www.ft.com/content/3cd49709-9d5b-453c-9776-62b2bea62730
By Will Paige; [email protected]
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