New Delhi: Cairn Energy and Air India jointly asked the New York Federal Court to remain a further process in a lawsuit of British companies targeting airlines for the $ 1.2 billion arbitration award enforcement.
This step follows the government that enforces laws for retrospective tax memo in this country, the applicable will result in a withdrawal of RS 10,247 crore tax requests in Cairn, according to court documents reviewed by PTI.
The British company has won an international arbitration award against such tax retribution and tries to take over Indian air assets when the government refuses to respect the appreciation and pay for $ 1.2 billion – plus flowers and penalties.
However, last month, the government enacted the tax law (amendments), 2021, which was a memo of all the retrospective tax demands and had agreed to return the 7,900 crore Rs which had been confiscated from Cairn to enforce the request.
Cairn has indicated that a refund, without interest and penalty, can be accepted – open the way to resolve a seven-year-old dispute.
Cairn and Air India in a joint request to the US District Judge Paul Gardephe on September 13 stated that it remained in the process of giving them “additional time to evaluate the effects and implications of” Law that revoked retroactive tax.
In return for Rs 7,900 Crore, Cairn will impose lawsuits that threaten seizures ordered by the destruction of the Indian government abroad.
One of the suites was put forward in May against Indian State-Owned Ltd., which was said to be Cairn must be considered an alter ego of India.
“Executing regulations in the process of making regulations and will take time,” both of them said in the petition seeking an extension of the October 21 to present the initial pretrial case and pretrial conference on October 28.
They asked for a court to “stay every further process in this regulation until 31 October 2021, and reschedule the initial pretrial conference and, respectively, deadlines for the parties to submit Prapria letters with them and the proposed case management plan, for the date Only on November 2021.
“” The parties have negotiated and agreed that the stay will facilitate efficient resolution of disputes, preserve court resources and parties, and are not intended to prevent or delay, “he added.
Cairn at the age of May 14 brought a lawsuit in the New York District Court to hold Air India responsible as Alter Ego of the Republic of India because the government’s obligation owed under a foreign arbitration award.
The company separately filed a petition before the District Court for the Columbia District to recognize and enforce the arbitration award against India on February 12, 2021.
Looking to improve the reputation of India damaged as an investment destination, the government last month imposed a new law RS 1.1 Lakh Crore in Claims Exceptional against multinational companies such as Telecom Vodafone Group, Sanofi Pharmaceutical Company and Sabmiller Brewer, which is now owned by AB Inbev, and Cairn.
Around RS 8,100 Crore collected from companies under the provisions of taxes removed must be returned if the company agreed to drop circulating litigation, including flower claims and punishment.
From this, Rs 7,900 Crore will only mature for Cairn.
The International Arbitration Court in December canceled RS 10,247 Crore’s retribution in taxes at the 2006 reorganization of the Cairn Indian business before the list.
It also asked the Indian government to return the value of confiscated and sold shares, dividends were confiscated and tax returns were cut.
It amounted to $ 1.2 billion – plus flowers and penalties.
The government initially refused to honor the award, forcing Cairn to identify $ 70 billion in Indian assets from the US to Singapore to enforce the verdict, including taking the Air Carrier flag India Ltd to US court in May.
A French court in July paved the way for Cairn to win the Indian government’s real estate in Paris.
All this litigation will go down once Rs 7,900 crore paid, Cairn CEO Simon Thomson has told PTI earlier this month.