FIRM CAN SELL McDONALD’S PRODUCTS

The Delhi high court on Thursday declined to pass an interim order restraining Connaught Plaza Restaurants Pvt. Ltd ( CPRPL), a McDonald’s franchisee, from selling products under the name of the US fast food giant. CPRPL is a 50: 50 joint venture of McDonald’s and its estranged Indian partner, Vikram Bakshi.

Justice Rajiv Sahai Endlaw said that the restaurants of the franchisee were a running business and hence cannot be stayed ex- parte without proper consideration of all aspects, including CPRPL’s reply. The court, however, allowed a representative of McDonald’s legal team to visit some of the restaurants run by CPRPL to collect samples of food and packaging as well as inventory. The restaurants were directed to provide the samples to the representative.

The direction came after McDonald’s, represented by senior lawyer Rajiv Nayar, contended that the franchisee restaurants were using products and packaging that did not measure up to its quality standards as different suppliers were being used. Mr Nayar said that if CPRPL was not going to follow the global standards maintained by McDonald’s, it could not use the brand name.

The court also issued notice to CPRPL and Vikram Bakshi, seeking their response on McDonald’s plea.

The fast food company has sought orders restraining CPRPL and Mr Bakshi from “duplicating the McDonald’s system.”