Centre to challenge all Cairn cases in international courts

India has decided to appeal a $1.2 billion international arbitration award won by Cairn Energy Plc in a tax dispute and to strongly contest all cases filed by Cairn in various international courts, a person informed about the development said.

The move signals the government’s resolve to defend its sovereign rights in taxation. The government has, however, kept open the possibility of a resolution within existing Indian laws, the person said.

This indicates the government’s willingness to settle the tax dispute if Cairn chooses to do so under the direct tax dispute settlement scheme, Vivad se Vishwas, which gives relief on interest and penalty if the principal tax demand is paid.