India And The Cairn Energy Conundrum

Cairn Energy PLC ("Cairn Energy") is one of Europe's leading independent oil and gas exploration and development companies and its dispute with the Indian government has recently been making headlines here in India as well as across the globe.

In this article, we would like a recap of the case and the order given as well as answer questions such as - What is the Cairn Energy-Indian government dispute all about? What did the Permanent Court of Arbitration say in its ruling? What are Bilateral Investment Treaties ("BIT")?

Cairn Energy v. Indian Government - Setting the Stage

The dispute is predominantly a tax dispute and can easily be linked to the prominent Vodafone and Indian government tax case, which, simply put, resulted in the Indian government introducing the Finance Act, 2012 which amended the Income-tax Act, 1961 retrospectively.