Air India asks U.S. court to dismiss Cairn petition, says it is premature

Indian government has filed before a court in The Hague -- the seat of the international arbitration tribunal -- a Motion to Stay and a Motion to Dismiss the arbitral award, the August 23 petition stated.

Air India has asked a New York court to dismiss a petition filed by Britain's Cairn Energy for seizure of its assets to enforce $1.2 billion arbitral awards against the Indian government, saying the litigation was premature as an appeal against the arbitration award was still pending. The petition by the airline, which is separate to Indian government's plea in a Washington court seeking dismissal of Cairn's lawsuit to seek confirmation of the arbitral award, lacks jurisdiction to adjudicate a "mere hypothetical question" or one that depends upon contingent future events that may or may not occur, said the New York district court. Cairn first moved a court in the U.S. District Court for the District of Columbia seeking confirmation of the arbitration award and then filed a petition in the New York court to seek declaration of Air India as "alter ego" of the Indian government and so it should be made liable to pay the $1.26 billion arbitral award.