Cairn drags Air India to a US court over tax spat with state

Cairn Energy Plc is dragging the unprofitable, state-owned carrier Air India Ltd. to a U.S. court to seek payment of an arbitration award from the South Asian nation as part of a long-running tax dispute, according to a filing.

The energy company, which last year won an arbitration award for $1.2 billion plus interest, is asking a court in New York to deem the airline as "the alter ego of India,” the court filing said. It "should be held jointly and severally responsible for India’s debts, including from any judgment resulting from recognition of the Award.” Officials at Air India or the government of India were not immediately available for comment on Saturday.