Recently, Europe’s leading independent oil and gas exploration Cairn Energy plc has filed a case, in accordance with the New York Convention, in The United States of America district court to enforce a $1.2 billion arbitration award it won in a tax dispute against India.

  • About
    • The Convention on the Recognition and Enforcement of Foreign Arbitral Awards, also called as the “New York Arbitration Convention” or the “New York Convention”, is one of the key instruments in international arbitration.
      • Arbitration: it is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators (an independent person/body) who make a binding decision on the dispute.
    • It applies to the recognition and enforcement of foreign arbitral awards and the referral by a court to arbitration.
    • The Convention was adopted by the UN following a diplomatic conference held in May and June by 1958 at the United Nations Headquarter located in New York, and entered into force on 7th June 1959.
  • Parties to the Convention
    • The Convention has 166 Countries parties.
    • India is a party to the Convention.
  • Aim
    • The Convention’s principal aim is that foreign and non-domestic arbitral awards should not be discriminated against by courts asked to enforce them.
      • It obliges Contracting Countries to ensure foreign awards are recognised and generally capable of enforcement in their jurisdiction in the same way as domestic awards.
    • To require courts of Contracting Countries to uphold valid arbitration agreements and stay court proceedings in respect of matters which the parties have agreed should be resolved by arbitration.
      • By signing up to the Convention, a state agrees that its courts will respect and enforce parties’ agreements to arbitrate, and to recognise and enforce any resulting arbitral award in its jurisdiction subject to only very limited grounds for refusal.

Cairn Energy files case in US to push India Cairn Energy files case in US to push India