InvestorQ : What does it mean that the US Federal court has given strict time lines for Cairn UK and the government of India?
vidhya Laxmi made post

What does it mean that the US Federal court has given strict time lines for Cairn UK and the government of India?

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sarah Leo answered.
4 months ago
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The US Federal Court has asked both the parties to the dispute viz. the Government of India and Cairn UK to set clear time lines for the closure of the case and also stick to those time lines. This was after Cairn UK had made a request to the US Federal Court for enforcement of the arbitral award worth $1.2 billion. Cairn UK had sought to lay claim on assets of state owned companies like Air India to recover its dues from the Indian government.

However, subsequent to the plea made by Cairn UK, the Indian government had also made an appeal to the US Court to dismiss the pleas. Now the US Federal Court has given strict time lines. It has given Cairn UK time till 10-Sep to file its response to the Indian government request to dismiss the Cairn request. Subsequently, the Indian government will have time till 01-Oct to file a response in support of their motion. All will be time bound.

Further Cairn will get time till 20-Oct to counter the statement made by the Indian government. The bottom line is that there should be much greater clarity in this case by the early part of November. Meanwhile, Indian government has scrapped the retrospective tax legislation but the benefit will only be available to global companies who claim no dues on past cases and are willing to certify accordingly.

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