NCLT reinstates Vikram Bakshi as MD of McDonald’s joint venture
NEWDELHI: The National Company Law Tribunal (NCLT) on Thursday reinstated Vikram Bakshi as managing director of Connaught Plaza Restaurants Pvt Ltd, an equal joint venture between Bakshi and McDonald’s Corp.
Connaught Plaza runs the McDonald’s franchise in North and East India. McDonald’s India had on August 30, 2013 announced that Bakshi’s term as MD had ended on July 17.
A bench headed by president MM Kumar also named GS Singhvi, former judge of the Supreme Court, to act in the capacity of an administrator with all powers, including the power to veto in the board meetings.
“He shall continue to act as managing director of Connaught Plaza Restaurants Pvt Ltd (CRPL) subject to passing of any resolution under the chairmanship of the administrator,” a 134page order held.
It was clarified that the order was passed keeping in mind that none of the parties were oppressed during the re-election of Bakshi as managing director.
“We respect the decision of the NCLT. We are examining the judgment and exploring our legal options in the matter,” McDonald’s India Pvt Ltd said in a statement.
Bakshi, who was represented by law firm, Shardul Amarchand Mangaldas Co in the three-year legal battle, contended that the manner in which he was ousted from the post was “illegal, mala fide, malicious and oppressive in nature” and not in accordance with the terms of the joint venture agreement. It was further alleged McDonald’s actions were largely directed at buying him out at lower valuations, and asserted that he was committed to the business.