iNDICA NEWS BUREAU-
UK’s Cairn Energy (renamed Capricorn Energy), which had filed a suit against Air India in a US court in February 2021, has now withdrawn suits as part of its settlement with the Indian government.
On Wednesday, December 15, the company filed a “notice of voluntary dismissal” of its petition against India in the District of Columbia District Court.
According to the PacerMonitor website that tracks federal court cases in the US, the company also filed a similar plea for dismissal of its petition against Air India in the New York Southern District Court. Both cases have been “terminated”.
On February 12, Cairn had filed a petition in the District of Columbia court to confirm the arbitration award it won against India last December in the retrospective tax case.
The arbitration tribunal had ordered India to pay $1.2 billion-plus interest and costs to the UK firm in the seven-year-old tax case.
The company sought to seize the Indian government’s assets overseas to recover the money and hence also filed a petition on May 14 in the New York court against Air India. Cairn urged the court to hold Air India responsible for India’s debt, including obligations arising from the arbitration award.
“Pursuant to Rule 41(a)(1)(A)(i) of the Federal Rules of Civil Procedure, the plaintiff(s) and or their counsel(s), hereby give notice that the above-captioned action is voluntarily dismissed, with prejudice and without costs against the defendant(s) Air India Ltd,” said the summary of the dismissal notice on PacerMonitor.