Due to its 2021 blunder, India's cairn challenges at the huge is likely to fail

Toward the end of 2020 and investor-state dispute settlement arbitration tribunal in a case involving the British oil and energy giant Cairn and the republic of India found India guilty of having belated the India United Kingdom bilateral investment treaty.

The dispute arose when the India government armed with them retroactive 2020 amendment in the income tax act demanded that the Karen place taxes on the alleged capital gains in made due to a 2006 internal corporate instructions and rapture. The tribunal held that India's conduct bridge to the fair and equitable treatment provision of the India UK beat and order India to pay more than 1.2 billion to chiron.

Old and ISD award is binding on the parties it does not bring the disputes to an end.

There are two more obstacle first the award could be challenged at the seat of the arbitration second the host state code contest the enforcement of the award in the jurisdiction or in any other jurisdiction where the investor tries to enforce the word.

India has released the award in a court in the Hague. The seat of arbitration.

The award can be contested on limited ground such as the process dual is regularities and logistics channel metal India challenges is based on the ground that I SDS tribunal act jurisdiction India is considered that the taxes and matter aur side the scopes of the application of the it there full the case brought by the kayron fall outside subject matter is scope of the tribunal.

Where India has a legal right to challenge is there what this challenge is likely to fail.

Tribunal has explained the dispute between the caravan and India is not a tax dispute butter tax related investment disputes.

The tribunal held that attacks dispute related to the lyrics taxability of the specific transaction.

On the other hand in a textured investment disputes tribunal task is on the determined whether the state has violated and substructure protection scandal given in the diet and exercise the authority to be the field of taxation.

In the other words the question was whether the manner in which India text the 2016 transaction including the application of the 2020 man man tail sort of the substance is standard given the VIT or not

India's jurisdictional challenges will feel also because the text related metal or not excluded from the preview of India UK bit taxation matter or listed of the concept of article 43 of Indian utb it only for the substance is standard most favourite medicine treatment and international treatment. Taxes and related some measures could still be tested and touchstone to Dadar substantive standard of the Bee it has a pretty positive and the provisions.

The Indian government is correct in the asserting the Texas and power or in the indispensable part of the country 7 power how are you this is does not mean that exercise of the court cannot be subject matter of diabetes and the bit and equitable state.