RE: Article about India not honouring International Arbitration award to Cairn >>21 Jun 2021 13:57
Interesting Article. Ty. In summary:
Cairn has identified USD 70 billion of Indian assets overseas for potential seizure to collect award, which now totals to USD 1.72 billion after including interest and penalty.
Once a court recognises Air India as the alter ego of Indian government, Cairn can seek attachment or seizure of its assets in the US such as airplanes, immovable assets and bank accounts to recover the amount it was awarded by the arbitration tribunal.
The Indian government, however, plans to contest any enforcement proceeding brought by Cairn.
"The Indian government naturally will challenge such seizure but to save the assets it may have to pawn money equivalent to the value of assets in some form of financial security such as bank guarantee. The court will return such a guarantee to India if it does not find merit in Cairn's case. But the surety will be passed on to Cairn if the court finds that India had failed to honour its obligation," a source said.