Analyzing the Role of State Immunity in Cairn Energy’s Enforcement Lawsuit: Can India Successfully Invoke State Immunity in Defense?

Last year in December while deciding an investment dispute related to the sovereign right to tax, a PCA tribunal at The Hague, ruled in Cairn Energy's favour an award of $1.72 bn. against India. However, India is determined to protect her sovereign right to tax and vowed not to accept the arbitral award. In these circumstances, the British Oil giant Cairn Energy Plc. has started locating Indian assets in different countries and moved courts in several jurisdictions under the international treaty for the enforcement of the arbitral award. It is reported that Cairn Energy has registered the arbitral award in more than ten countries including the US, France, the UK. Recently, a Paris based court has ordered to freeze Indian government assets valued at around $20 mn. In this background, I will argue that how far the doctrine of state immunity help India to protect her assets in foreign countries.