UK-listed Cairn Energy said today that a French court has accepted its petition to freeze around €20mn of Indian government assets, in a bid to enforce the arbitration award it won last year.
Cairn won an arbitration case against the Indian government over a 102.5bn rupees ($1.4bn) retrospective tax demand and was also awarded damages of $1.2bn plus interest and costs.
The court has frozen 20 Indian state-owned assets in central Paris, Cairn said, although details are unclear.
"Our strong preference remains an agreed, amicable settlement with the government of India to draw this matter to a close," the company said.
"However, in the absence of such a settlement, Cairn Energy must take all necessary legal actions to protect the interests of its international shareholders."
India's finance ministry said that the government did not receive any notice, order or communication from any French Court and will take appropriate legal remedies to protect the interests of India if such order were to be received.
"Constructive discussions have been held and the government remains open for an amicable solution to the dispute within the country's legal framework," the ministry said, adding, representatives of Cairn had approached the government to resolve the matter.
Cairn had also filed a lawsuit against state-controlled airline Air India in May, to enforce the arbitration award.
The lawsuit filed in the US argued that that Air India is legally indistinct from the state itself because of the country's wide control over airline operator's operations and affairs and is jointly liable for the debts and obligations.
