India has filed a “writ of summons” in The Hague, challenging about $1.4-billion arbitration award in favour of UK-based Cairn Energy Plc, two government officials said on Tuesday.
“India had filed a writ of summons earlier this week challenging the arbitration award on the principle that no bilateral investment treaty can challenge the sovereign’s right on matters of taxation,” one official said on condition of anonymity. A writ of summons is the first legal step to notify the defendant that a civil lawsuit has been filed against them.
India had to take the step to protect its sovereign right after exhausting all efforts to settle the matter amicably, the second official said.
