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Cairn Energy lawsuit in US against Air India may stumble over precedent
May 25, 2021
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The key issue would be whether Air India is an alter ego of the Government of India
A lawsuit filed in New York by Cairn Energy Plc seeking to declare national carrier Air India as an alter ego of the government to pressurise India to pay the $1.2 billion arbitration award the British oil and gas firm won in a retrospective tax dispute, could stumble if the court takes a recent similar case as a precedent.
The precedent relates to a case brought by Lithuanian creditors against Tajik Air, the national airline of Tajikistan, to enforce a $20 million award.