The Cairn Power dispute with India over the settlement of a $1.2 billion award from The Hague, took a dramatic activate Thursday, with the corporate saying it had secured a French court docket order permitting it to freeze not less than 20 Indian properties in Central Paris.
Nonetheless, the federal government denied all data of the award. It mentioned it had filed an enchantment in opposition to the tribunal determination of the Everlasting Courtroom at The Hague delivered in December 2020.
“Government is trying to ascertain the facts, and whenever such an order is received, appropriate legal remedies will be taken, in consultation with its Counsels, to protect the interests of India,” a Finance Ministry assertion mentioned.
Earlier, a Cairn Power spokesperson had informed The Hindu that the ball is in India’s court docket to cease the enforcement proceedings of property.
‘For amicable settlement’
“Our strong preference remains an agreed, amicable settlement with the Government of India to draw this matter to a close, and to that end we have submitted a detailed series of proposals to them since February this year,” the spokesperson mentioned in a press release.
“However, in the absence of such a settlement, Cairn must take all necessary legal actions to protect the interests of its international shareholders,” the assertion added.
Based on sources, the award by the Tribunal judiciaire de Paris was the “necessary preparatory step” to taking possession of the properties and guaranteeing all proceeds from the sale of the properties could be accrued to Cairn Power PLC as a part of its efforts to implement the award from The Hague delivered in December final in Cairn’s favour.
Whereas the Paris properties are estimated to yield about $23 million, Cairn sources had informed The Hindu that they’ve recognized property price about $70 billion in a number of jurisdictions that they might probably connect by means of court docket orders. Cairn legal professionals have registered The Hague award in courts in not less than 10 jurisdictions together with the US, the UK, Netherlands, Canada , France, Singapore, Japan, the UAE and even the Cayman Islands.
In New York court docket
In June, Cairn legal professionals approached the court docket within the Southern District of New York, making the plea that Air India needs to be made responsible for the excellent settlement, and mentioned that different state-owned firms might be focused as properly. The federal government has till subsequent week to file its problem in that court docket.
“Government has already filed an application on March 22, 2021 to set aside the December 2020 international arbitral award in The Hague Court of Appeal. Government of India will vigorously defend its case in Set Aside proceedings at The Hague,” the Finance Ministry asserted on Thursday.
Regardless of the snowballing dispute, each the federal government and Cairn Power mentioned they have been open to persevering with talks over the problem.
In December, the three-member tribunal within the Permanent Court of Arbitration at The Hague ruled unanimously against the retrospective tax levied by India on Cairn in 2015, ruling that the tax fell afoul of the bilateral funding pact.