{"id":123723,"date":"2021-08-05T19:22:49","date_gmt":"2021-08-05T13:52:49","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=123723"},"modified":"2021-08-11T15:40:48","modified_gmt":"2021-08-11T10:10:48","slug":"arbitration-awards-and-the-public-interest","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/arbitration-awards-and-the-public-interest\/","title":{"rendered":"Arbitration Awards and The Public Interest"},"content":{"rendered":"<p><strong>Source:<\/strong>\u00a0<span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.business-standard.com\/article\/opinion\/arbitration-awards-and-the-public-interest-121080401910_1.html\" target=\"_blank\" rel=\"noopener\">Business standard<\/a><\/span><\/p>\n<p><strong>Relevance<\/strong>: Way forward for India in the Cairns Energy case<\/p>\n<p><strong>Synopsis<\/strong>: Recently, a court in Paris allowed<strong> Cairn Energy<\/strong> to freeze assets of <strong>Government of India<\/strong> in Paris in a tax dispute. Similar developments are possible in the US from actions by Cairn and <strong>Devas Multimedia<\/strong>. Thus, an objective, analytical approach to pursuing or resisting claims and arbitration awards is advisable.<\/p>\n<h5><b>Options before India<\/b><\/h5>\n<p>The choice before India are:<\/p>\n<ol>\n<li>to litigate continuously<\/li>\n<li>to accept the award<\/li>\n<li>to negotiate a settlement<\/li>\n<\/ol>\n<h5><b>Accepting the award<\/b><\/h5>\n<p>Accepting the award has the following consequences:<\/p>\n<ul>\n<li>Political &#8211; state appears to be weak if it accepts the award<\/li>\n<li>Social &#8211; it indicates selling out of public interest to business entities<\/li>\n<li>Economic &#8211; it could lead to more such cases such as Vodafone case, Vedanta case,\u00a0 Devas Multimedia case etc. which hurts public exchequer.<\/li>\n<\/ul>\n<h5><strong>Implications of a non-resolution<\/strong><\/h5>\n<p>Resolution would enable <strong>reallocation of India&#8217;s energies<\/strong> \u2014 our political, administrative, and judicial resources, and society\u2019s productive capacity and mind-share \u2014 to more constructive purposes.<\/p>\n<p>Additional considerations include substantial, <strong>continuing damage to India\u2019s business reputation<\/strong> for not honoring agreements and awards, and for resorting to repeated appeals.<\/p>\n<p>The <strong>indirect costs and collateral damage are enormous<\/strong>, such as to the telecom and energy sectors since 2012, to affected companies and employees, to the investment climate, and the cascading effects through the economy.<\/p>\n<h5><strong>Suggestions<\/strong><\/h5>\n<ul>\n<li><strong>Mindset change<\/strong>: The mindset will have to change for a more open approach, objective analysis, and decisions based on facts and reason. Cairn, Vodafone, and Devas have reportedly shown willingness to settle.<\/li>\n<li><strong>Evaluate pros and cons<\/strong>: The government should seriously consider evaluating the pros and cons of asset seizure and indirect damages, compared with other options, including possible settlements.<\/li>\n<\/ul>\n<p><strong>Conclusion<\/strong><\/p>\n<p>By ending these disputes quickly and well, we can hope to build a more reasonable and stable business and investment environment, and better business practices.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source:\u00a0Business standard Relevance: Way forward for India in the Cairns Energy case Synopsis: Recently, a court in Paris allowed Cairn Energy to freeze assets of Government of India in Paris in a tax dispute. Similar developments are possible in the US from actions by Cairn and Devas Multimedia. Thus, an objective, analytical approach to pursuing&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/arbitration-awards-and-the-public-interest\/\">Continue reading <span class=\"screen-reader-text\">Arbitration Awards and The Public Interest<\/span><\/a><\/p>\n","protected":false},"author":10330,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[8904,216,8778,8903,8399],"class_list":["post-123723","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-cairn-energy-case","tag-gs-paper-3","tag-important-international-institutions","tag-international-arbitration","tag-retrospective-taxation","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1702703305},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/123723","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10330"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=123723"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/123723\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=123723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=123723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=123723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}