NCLT administrator writes to CPRL logistics partner to resume supply

NEW DELHI: In a bid to resume the functioning of 84 closed Mcdonald’s restaurants in north and east India, former Supreme Court judge GS Singhvi has written to Radhakrishna Foodland, the logistics partner of Mcdonald’s in north and east India to restore the supply chain services.

Singhvi is an administrator appointed by National Company Law Tribunal or NCLT on the board of Connaught Plaza Restaurant Pvt Ltd (CPRL), the north and east India licencee of the American fast food chain, to oversee the functioning of CPRL. Radhakrishna Foodland, which manages the distribution network of CPRL in north and east India, had discontinued its services (on December 20), due to which 84 Mcdonald’s restaurants faced closure earlier this week.

CPRL is a j oint venture between Mcdonald’s India (MIPL) and Vikram Bakshi, and operates 169 Mcdonald’s restaurants across north and east India.

In two letters dated December 24 and December 25, Singhvi said that the discontinuation of services has disrupted and jeopardised the business of CPRL. “Therefore, you are advised to forthwith resume all the said supply services,” Singhvi said, in one of the two letters mentioned above.

Mint has reviewed copies of both the letters.

Balasubramanian N Iyer, chief operating officer at Radhakrishna Foodland confirmed that the company has officially replied to the letter (and is waiting for Singhvi’s response).

“They (Radhakrishna Foodland) have not resumed services. RKFL has replied to Justice Singhvi’s letter. They claim it’s a contractual matter and does not fall in the ambit of administrator’s powers. If so, why did they not provide a 30-day notice enshrined in the agreement between CPRL and RKFL,” said Bakshi, in a text message.