The

Cairn Energy Capricorn Energy PLC (previously Cairn Energy PLC) is a British oil and gas exploration and development company and is listed on the London Stock Exchange. Capricorn has discovered and extracted oil and gas in a variety of locations around the ...

and

Government of India The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, ...

dispute is mainly an ongoing tax and investment dispute which has its origins in 2005–2006. The case is closely linked to Cairn's partner in India, ''

Vedanta ''Vedanta'' (; sa, वेदान्त, ), also ''Uttara Mīmāṃsā'', is one of the six (''āstika'') schools of Hindu philosophy. Literally meaning "end of the Vedas", Vedanta reflects ideas that emerged from, or were aligned with, t ...

'', and to concepts such ''Ex post facto'' law in the form of retrospective taxation, bilateral investment treaties, and international arbitration between private and sovereign states. Proceedings in the ''private'' investor-state arbitration (''Cairn Energy PLC & Cairn UK Holdings Limited v. The Republic of India'') at the

Permanent Court of Arbitration The Permanent Court of Arbitration (PCA) is a non-UN intergovernmental organization located in The Hague, Netherlands. Unlike a judicial court in the traditional sense, the PCA provides services of arbitral tribunal to resolve disputes that aris ...

The Hague The Hague ( ; nl, Den Haag or ) is a city and municipality of the Netherlands, situated on the west coast facing the North Sea. The Hague is the country's administrative centre and its seat of government, and while the official capital o ...

began on 22 September 2015 under

United Nations Commission on International Trade Law The United Nations Commission on International Trade Law (UNCITRAL) ( French: ''Commission des Nations Unies pour le droit commercial international (CNUDCI)'') is a subsidiary body of the U.N. General Assembly (UNGA) responsible for helping to f ...

(UNCITRAL) rules. The final

arbitration award An arbitration award (or arbitral award) is a determination on the merits by an arbitration tribunal in an arbitration, and is analogous to a judgment in a court of law. It is referred to as an 'award' even where all of the claimant's claims fail ( ...

of was issued on 21 December 2020 in favour of Cairn; though compensation claimed by Cairn had been . To enforce the arbitration award, Cairn has registered the award around the world including in countries such as United States, United Kingdom, Canada, France, Singapore, Mauritius, UAE, Cayman Islands and Netherlands. In May 2021, Cairn sued

Air India Air India is the flag carrier airline of India, headquartered at New Delhi. It is owned by Talace Private Limited, a Special-Purpose Vehicle (SPV) of Tata Sons, after Air India Limited's former owner, the Government of India, completed the ...

in New York. In July 2021, Tribunal judiciaire de Paris accepts Cairn's claim to seize Indian properties in France. The case includes ''Vedanta Resources PLC v. Government of India'' in the

Income Tax Appellate Tribunal India's Income Tax Appellate Tribunal (ITAT) was set up on 25 January 1941, and it was the first experiment in tribunalization in the history of India. It is second appellate authority under the direct taxes and first independent forum in its ...

of India, as well as a case in the

High Court of Delhi The High Court of Delhi (IAST: ''dillī uchcha nyāyālaya'') was established on 31 October 1966, through the ''Delhi High Court Act, 1966'', with four judges, Chief Justice K. S. Hegde, Justice I. D. Dua, Justice H. R. Khanna and Justice S. K ...

. India amended its income tax law in 2012, adding an amendment/clarification allowing for it to collect tax on old investments. While India applied the law on Cairn in 2015, it had done the same in 2014 to

Vodafone Vodafone Group plc () is a British multinational telecommunications company. Its registered office and global headquarters are in Newbury, Berkshire, England. It predominantly operates services in Asia, Africa, Europe, and Oceania. , Vod ...

. The case went to the

and in September 2020, Vodafone got a ruling in its favour. In August 2021 India scrapped its retrospective tax provision.

Timeline

Before 2000

After 2000

References

Bibliography

* {{Citation, last1=Torterola, first1=Ignacio, title=TDM IACL Case Report Cairn Energy PLC, Cairn UK Holdings Limited v. The Republic of India. PCA Case No. 2016-7 - Procedural Order No. 4 - Decision on the Respondent's Application for Bifurcation - 19 April 2017, date=2020, url=https://www.transnational-dispute-management.com/downloads/19805_case_report_cairn_v_india_po4_2017.pdf, pages=6, editor-last=Massa, editor-first=Diego Luis Alonso, archive-url=https://web.archive.org/web/20210501221101/https://www.transnational-dispute-management.com/downloads/19805_case_report_cairn_v_india_po4_2017.pdf, publisher=School of International Arbitration, Queen Mary, University of London, International Arbitration Case Law, archive-date=1 May 2021, last2=Mistelis, first2=Loukas, last3=Ponomarov, first3=Volodymyr Arbitration cases Taxation in India Ex post facto case law Permanent Court of Arbitration cases

Timeline

Before 2000

After 2000

See also

References

Bibliography