View of Cairn’s oil rig. (Source: Cairn India Website)
The legal battle between the Indian government and Cairn Energy Plc is likely to play out in the United States after the company asked a district court to enforce the $1.2 billion award granted in its favour by an international arbitral tribunal. The dispute relates to the tax demand on Cairn UK Holdings Ltd. for alleged capital gains it made in the 2006 business reorganisation of its Indian holdings.