Cairn Energy PLC (LON:CNE) has told investors that the Arbitral Tribunal expects to deliver its ruling on the Cairn India dispute “after the end of the summer”, with a significant delay due to the coronavirus (COVID-19) pandemic avoided.
In a statement, the company repeated that it continues to have a high level of confidence in the arbitration and is seeking full restitution for losses of more than US$1.4bn.
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“The Arbitral Tribunal has indicated that, whilst it has encountered some difficulties created by the COVID-19 pandemic, it does not expect significant delays and hopes to remain reasonably within the lead-time it had anticipated,” Cairn said in the statement.
“Whilst it is not yet able to commit to a specific date for its ruling, it expects a release of the award after the end of the summer.”
In 2015, Cairn Energy entered into international arbitration proceedings against India following the expropriation of its investments and retrospective taxation actions undertaken by India’s Income Tax Department in 2014.
It filed a Notice of Dispute under the UK-India Bilateral Investment Treaty in order to protect its legal position and shareholder interests. Final merits hearings for the arbitration concluded during 2018.