Cairn Energy has sued India’s flagship provider Air India to implement a $1.2 billion arbitration award that it gained in a tax dispute towards India, in line with a US District Court docket submitting reviewed by Reuters.
The transfer ratchets up stress on India’s authorities to pay the sum of $1.2 billion plus curiosity and prices that the British agency Cairn was awarded by an arbitration tribunal in December.
The physique dominated India breached an funding treaty with Britain and stated New Delhi was liable to pay.
Cairn filed the lawsuit on Friday within the US District Court docket for the Southern District of New York, searching for to make Air India accountable for the judgement that was awarded to Cairn. The lawsuit argued that the provider as a state-owned firm, is “legally vague from the state itself.”
“The nominal distinction between India and Air India is illusory and serves solely to assist India in improperly shielding its property from collectors like (Cairn),” the submitting stated.
Air India and the Indian authorities didn’t instantly reply to requests searching for remark.
In February, Cairn filed a separate case in a US courtroom to recognise and ensure the arbitration award, together with funds due since 2014 and curiosity compounded semi-annually.
(This story has not been edited by Enterprise Commonplace workers and is auto-generated from a syndicated feed.)