Context: International arbitration cannot be the solution to Cairn’s dispute. Government must look at administrative reform.
Background: The recent move by Cairn to seize India’s sovereign assets in order to enforce its arbitration award was thought by many to be a fitting response to India’s intransigence. However, it is important to reflect on the many grey areas of law that need due consideration.
Issues with the international arbitrations
Way Forward: An end to the dispute seems unlikely. It raises many questions that administrators must address through reform. India’s model BIT introduced in 2016 rectifies the issue of dispute resolution through the specific exclusion of taxation.