169 McDonald’s outlets in north and east India to shut down

DISCORD American fast food giant ends agreement with CPRL, looking for partner

down on all stakeholders, including thousands of employees across 169 restaurants. McDonald’s operations in west and south India have not been affected as the master franchisee rights of the burger chain are owned by another firm, Westlife Development Ltd, through its unit Hardcastle Restaurants Pvt. Ltd.

Amit Jatia, vice-chairman of Westlife, declined to comment on the possibility of it opting for McDonald’s franchise for north and east India. Christianson of McDonald’s said it was too early to comment on potential partnerships.

The move comes almost two months after CPRL shut 43 of the 55 McDonald’s restaurants in Delhi following its failure to renew their licences, amid a legal battle between Bakshi and McDonald’s.

In 2013, McDonald’s voted against the re-election of Bakshi as managing director of CPRL, following which Bakshi challenged his removal at the Company Law Board (now the National Company Law Tribunal, or NCLT), accusing McDonald’s of mismanagement and oppression.

Later in 2013, McDonald’s revoked the joint venture agreement and invoked arbitration. McDonald’s has been pursuing arbitration against Bakshi in the London Court of International Arbitration. However, the NCLT reinstated Bakshi as managing director of CPRL earlier in June.

“This is a completely contemptuous, mala fide and yet another oppressive act indulged in by the McDonald’s Corporation to sabotage the order of the Hon’ble NCLT (which states that McDonald’s Corporation is refrained from interfering with the smooth functioning of Connaught Plaza and all its 169 restaurants open in the assigned territory of north/ east India),” Bakshi said in a text message.

“CPRL is considering the appropriate legal remedies that are available under law. How can they (MIPL) do a hit wicket,” Bakshi added, without confirming if the company paid the due royalties.

“The entire legal dispute will turn on the fact whether or not the company paid royalties. If CPRL did not pay the due amount, there is a definite cause for termination on the part of McDonald’s,” said Shamnad Basheer, former chair professor of intellectual property law at West Bengal National University of Juridical Sciences.

SOUNAK MITRA CON‑ TRIBUTED TO THIS STORY