"If Cairn wins the case, it will be a step towards attaching and seizing Indian assets overseas, especially in the U.S.," the source said.
A US court has issued summons to the government of India in a case filed by cairn Energy Plc to implement a $1.2 billion arbitration award it had won against India, as per the court filings.
Cairn Energy Plc and Cairn UK Holdings Ltd filed a petition in a Washington DC district court on February 12 to confirm the arbitration award in a bid to mount pressure on India to pay up.
On February 16, Judge Richard J Leon of the District of Columbia district court issued summons electronically to India, days ahead of Cairn CEO Simon Thomson’s planned Thursday meeting with Finance Secretary Ajay Bhushan Pandey in New Delhi. Thomson is also hoping to meet Finance Minister Nirmala Sitharaman this week to persuade her to honour the arbitration award and swiftly implement it.
The government hasn’t yet said if it planned to pay up or appeal the award. Cairn’s strategy has been to increase pressure on the government to quickly close the matter and receive all that is due to it. If the government refuses to pay up, Cairn would need orders from a court with valid jurisdiction to enforce the award against Indian assets overseas.
Cairn has also filed petitions in the courts in the UK and the Netherlands, as per an agency report.
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