Cairn Energy Plc, a British energy explorer company and one of Europe's leading independent oil and gas exploration and development company, has won an arbitration award against the Indian government in a tax dispute case.

This award means that the government will have to pay more than ₹7,500 crores to the energy company as the amount, which it seized by denying Cairn its share of dividend and the income tax department liquidating a portion of the residual shares that the company had in Cairn India post its merger with Vedanta. According to the sources, an international arbitration tribunal ruled about India's tax claim of ₹10,247 crores in past taxes over a 2006-07 internal re-organization of Cairn's India business not being a valid demand.

The tribunal has also asked the Indian government to refund the money withheld along with the interest to the company for seizing its dividend, tax refund, and sale of shares used to recover the dues partly. The government can appeal against the Tribunal ruling but is yet to comment about it and what it intends to do regarding the judgment.