McDon­ald’s can fight Bak­shi case abroad, says CLB

The Financial Express - - FRONT PAGE - Kaushal Shroff

THE Com­pany Law Board on Mon­day re­jected Vikram Bak­shi’s plea seek­ing a stay on for­eign ar­bi­tra­tion pro­ceed­ings ini­ti­ated by McDon­ald’s In­dia over dis­putes, in­clud­ing his re­in­state­ment as MD of Con­naught Plaza Restau­rants, re­ports Kaushal Shroff in New Delhi.

New Delhi, Dec 30: The Com­pany Law Board (CLB) on Mon­day re­jected Vikram Bak­shi’s plea seek­ing a stay on for­eign ar­bi­tra­tion pro­ceed­ings ini­ti­ated by McDon­ald’s In­dia (MIPL) in re­spect of the un­re­solved dis­putes be­tween the two, which in­cludes the ques­tion of Bak­shi’s re­in­state­ment as the MD of Con­naught Plaza Restau­rants (CPRL).

The part­ner­ship be­tween the US fast-food chain and Bak­shi is housed in CPRL.

Bak­shi’s term as CPRL MD ex­pired on July 17. Soon af­ter, prob­lems be­tween the part­ners sur­faced. On Au­gust 30, McDon­ald’s is­sued notices in se­lect news­pa­pers say­ing Bak­shi had ceased to be the MD of CPRL. In early Septem­ber, Bak­shi moved the CLB for his re­in­state­ment as MD of CPRL.

Sub­se­quently, on Novem­ber 28, while an ap­pli­ca­tion from Bak­shi seek­ing his re­in­state­ment as MD was still pend­ing be­fore the CLB, MI- PL ter­mi­nated the JV agree­ment, and on the next day, the com­pany, via e-mail, sub­mit­ted an ap­pli­ca­tion to the Lon­don Court of In­ter­na­tional Ar­bi­tra­tion (LCIA) seek­ing ar­bi­tra­tion of the dis­pute be­tween the par­ties.

Af­ter re­ceiv­ing MIPL’s ap­pli­ca­tion, LCIA shot off a no­tice to Bak­shi di­rect­ing him to nom­i­nate an ar­bi­tra­tor by De­cem­ber 28. How­ever, Bak­shi chose not to nom­i­nate an ar­bi­tra­tor.

As per the rules of LCIA and the ar­bi­tra­tion clause of the JV agree­ment, Bak­shi’s op­por­tu­nity to nom­i­nate an ar­bi­tra­tor for him­self has been “ir­re­vo­ca­bly waived” and hence­forth, the LCIA will take upon it­self the re­spon­si­bil­ity to nom­i­nate an ar­bi­tra­tor for Bak­shi.

Vikram Bak­shi

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.