Hindustan Times ST (Jaipur)

NCLT administra­tor writes to McDonald’s logistics partner to restore supply service

- Harveen Ahluwalia harveen.a@livemint.com

In a bid to resume the functionin­g of 84 closed McDonald’s restaurant­s in north and east India, former Supreme Court judge G.S. 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 Private Limited (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 20 December), due to which 84 McDonald’s restaurant­s faced closure earlier this week.

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

In two letters dated 24 December and 25 December, Singhvi said that the discontinu­ation of services has disrupted and jeopwithou­t ardized the business of CPRL and amounts to “contravent­ion of the orders of the Hon’ble NCLT and tantamount to contempt of the order of NCLT (dated 13 July 2017),” according to which Singhvi has to ensure smooth functionin­gofCPRLres­taurants.

“Therefore, you are advised to forthwith resume all the said supply services, so that all the restaurant­s operated by CPRL have a complete supply of all the products that they are supposed to sell and are able to continue to operate their daily businesses without any impediment,” Singhvi said, in one of two letters mentioned above.

Mint has reviewed copies of both the letters.

Radhakrish­na Foodland was also asked by Singhvi to send response to the letters by Tuesday noon. 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), divulging details on the content of the response and restoratio­n of services.

“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.

The developmen­t comes in the backdrop of the ongoing legal battle between Bakshi and MIPL. On 21 August, McDonald’s India had terminated its franchise agreement with CPRL, according to which Bakshi was supposed to cease using McDonald’s name, trademarks, designs, branding, operationa­l and marketing practice and policies and food recipes and specificat­ions from 6 September.

This terminatio­n was challenged by Bakshi before the NCLT for being in contempt of the earlier NCLT order, which had asked McDonald’s Corp. to refrain from interferin­g in the smooth functionin­g of CPRL. So far, Bakshi has continued to operate the restaurant­s.

NEW DELHI:

 ?? MINT/FILE ?? CPRL operates 169 McDonald’s restaurant­s across north and east India
MINT/FILE CPRL operates 169 McDonald’s restaurant­s across north and east India

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