No pos­si­bil­ity for dis­pute settlement with Bak­shi: McDon­ald’s tells NCLAT

Tri­bunal is­sues no­tice to both par­ties to file their replies; next hear­ing on Septem­ber 21

The Hindu Business Line - - FRONT PAGE -

Amer­i­can fast food chain McDon­ald’s and its es­tranged In­dian part­ner Vikram Bak­shi have failed to reach an out-of­court settlement to re­solve their long-stand­ing dis­pute. The Na­tional Com­pany Law Ap­pel­late Tri­bunal (NCLAT) on Wed­nes­day noted that there was no chance of an am­i­ca­ble settlement be­tween the two par­ties.

Last week, NCLAT had asked the two par­ties to in­form the court by Au­gust 30, whether there was a chance of an am­i­ca­ble settlement on cer­tain terms and con­di­tions be­tween them.

How­ever, McDon­ald’s In­dia in­formed NCLAT dur­ing the hear­ing that it wishes to pro­ceed with its ap­peal, as the settlement of the dis­pute with its fran­chise part­ner was not pos­si­ble. NCLAT Chair­man Jus­tice SJ Mukhopad­haya said: “We un­der­stand from the ar­gu­ments that there is no chance of am­i­ca­ble settlement.” The next hear­ing of the mat­ter has been sched­uled for Septem­ber 21.

The NCLAT also is­sued a no­tice to the par­ties to file their replies.

McDon­ald’s In­dia had filed a pe­ti­tion with NCLAT on Au­gust 23, chal­leng­ing a Na­tional Com­pany Law Tri­bunal (NCLT) or­der that had re­in­stated Bak­shi as the MD of Con­naught Plaza Restau­rants Pvt Ltd (CPRL). CPRL is a 50:50 joint ven­ture be­tween McDon­ald’s In­dia and Bak­shi. In 2013, Bak­shi was re­moved from the post, fol­low­ing which he had ap­proached NCLT.

On Au­gust 21, McDon­ald’s In­dia Pvt Ltd also an­nounced ter­mi­na­tion of its fran­chise agree­ments with Con­naught Plaza Restau­rants Pvt Ltd that runs 169 restau­rants in North and East In­dia. It has asked CPRL to cease us­ing any of the in­tel­lec­tual prop­er­ties of McDon­ald’s at these out­lets within 15 days of the ter­mi­na­tion no­tice.

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