Cairn Energy plc said that the Indian Government had petitioned the Dutch Court of Appeal to set aside its arbitration award, which was granted unanimously in the company’s favour.
TRIBUNAL
The independent oil and gas exploration and development company with headquarters in Edinburgh added it had “full confidence” in its own position.
“As previously advised, Cairn will continue to take all steps necessary in order to protect the interests of its shareholders.”
The award dated 21st December 2020 was issued according to the UK-India Bilateral Investment Treaty.
On 23 December 2020, Cairn announced that the tribunal established to rule on its claim against the Indian government had found unanimously in the company’s favour.
The legal seat of the tribunal was the Netherlands, which ruled unanimously that India had breached its obligations to Cairn under the treaty and that compensation was due.
The tribunal further ruled that the Indian Government’s retrospective tax amendment was “grossly unfair” and in breach of the “fair and equitable treatment” standard of the treaty.
The Indian Income Tax Department (IITD) began in 2014 a retrospective tax investigation into Cairn.
In March 2015, Cairn initiated international arbitration proceedings against the Indian Government under the UK-India Bilateral Investment Treaty.
The arbitral tribunal issued an award on 22 December 2020.