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
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.