Re: "They can settle the case by paying only the tax arrears, in...

Re: "They can settle the case by paying only the tax arrears, in which case liability of the interest and penalty shall be waived," he said, adding the companies would have to withdraw all pending litigation in courts or tribunals or arbitration proceedings.

Not sure you are right about Cairn's rise in share price being due to the Indian tax issue there Ya:

Here with the original report from the "Times of India":

http://timesofindia.indiatimes.com/...6-billion-tax-demand/articleshow/46523521.cms

In which they quote:
"The draft order addressed to Cairn's subsidiary, Cairn UK Holdings Limited, is in respect of fiscal year 2006-07 to the amount of USD 1.6 billion plus any applicable interest and penalties," it said.

Might be an overture, but doesn't sound much of a concession to me?

pj