Cairn tells Govt to appoint arbitrator by Nov 11

The Indian Government initially disagreed with Cairn, saying that the tax disputes are not covered under the bilateral treaty.

Cairn Energy Plc is reportedly willing to suspend its appeal to International Court of Justice (ICJ) seeking appointment of an arbitrator on behalf of the Government of India to resolve the Rs. 10,247-crore tax dispute, provided an arbitral panel is put in place by November 11.

Cairn will press the ICJ to name an arbitrator on behalf of the Indian Government, if New Delhi fails to name an arbitrator by November 11, reports a business daily.

Cairn has already named former Bulgarian minister Stanimir A Alexandrov as its arbitrator in the matter.

Late last month, the British company wrote to Finance Minister Arun Jaitley reminding him of the Government's promise to appoint an arbitrator to resolve the issue.

In March, Cairn sought arbitration under the India-UK Bilateral Investment Protection Agreement, disputing the tax demand raised on a 2006 internal business reorganisation.

The Indian Government initially disagreed with Cairn, saying that the tax disputes are not covered under the bilateral treaty.

Then in September, Cairn moved the Hague-based International Court of Justice, seeking appointment of an arbitrator on behalf of the Government of India.

At this stage, the Indian Government told Cairn as well as the ICJ that an arbitrator will be appointed soon, but nothing concrete has come out so far.