cairn: Cairn, Air India seek stay on New York court proceedings

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NEW DELHI: Cairn Energy and Air India have jointly asked a New York federal court to stay further proceedings in the British firm’s US lawsuit targeting the airline for enforcement of a $1.2-billion arbitral award.
The move follows the government enacting a law to scrap retrospective taxation in the country, which in effect will result in withdrawal of the Rs 10,247 crore tax demand on Cairn, according to court documents reviewed by PTI.
The British company had won an international arbitration award against levy of such taxes and sought to take over Air India assets when the government refused to honour the award and pay it $1.2 billion-plus interest and penalty.
But, last month, the government enacted the Taxation Laws (Amendment) Act, 2021, that scraps all such retrospective tax demands and has agreed to refund Rs 7,900 crore it had seized from Cairn to enforce such demand.
Cairn…

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