NCLAT ASKS MCDONALD’S, VIKRAM BAKSHI TO SETTLE ROW

NEW DELHI: The National Company Law Appellate Tribunal (NC LAT) on Friday asked McDonald’ s India Pvt Ltd and joint venture partner Vikram Bakshi to try and settle longstanding disputes that caused the American fast-foodchain to terminate their partnership this week.

NCLAT also asked McDonald’s India and Bakshi’s Connaught Plaza Restaurants Pvt. Ltd (CPRL) to keep their 169 outlets in north and east India open and running while the talks for a settlement are underway.

The directive came after McDonald’s India terminated its franchise agreement with CPR L this week for all 169 outlets, citing non-payment of royalties as the reason.

CPR L was supposed to shut the outlets down within 15 days of termination( by September 6).

NCLAT chairperson SJ Mukhopadhaya asked both to decide whether an “amicable settlement” can be reached by August 30. “Before going into the merit (of the case), we allow the parties to obtain instruction if there is a chance of ami cable settlement on certain terms and conditions.”

Mukhopadhaya asked both parties not to pursue any criminal proceedings against each other till the case is settled.

The case will be heard next on August 30.

The tribunal is hearing an appeal brought by McDonald’s India against a National Company Law Tribunal( NC LT) order of July reinstating Bakshi as managing director of CPRL.