McDonald's likely to move NCLAT on order of Vikram Bakshi

August 21, 2017

McDonald's, US fast food chain is preparing to move National Company Appellate Law Tribunal this week against the order of National Company Law Tribunal order of July 13 that reinstated Vikram Bakshi as the Managing director of its Indian joint Venture Connaught Plaza Restaurants Pvt Ltd. (CPRL).

The NCLT has ordered reinstatement of Vikram Bakshi as MD of CPRL - a 50:50 joint venture between McDonald's India Pvt Ltd and him. CPRL is responsible for operating McDonald's outlets in North and East India. Bakshi has been removed as Managing Director in August 2013.

There is no sign of resolution between the Company and it's JV partner and consequently, 43 joints of McDonald's remain closed in the capital. The outlets have been closed since June 29.

Mcdonald's India spokesperson Barry Sum said on the re-opening of the closed outlets, “ The operations of the outlet is affected by the failure to Eat House Licences remain suspended at the moment.”

Arbitration proceedings are also being pursued by the food chain at the London Court of International Arbitration in this regard where the matter is still pending. McDonald's and Bakshi continue to be at loggerheads over control of CPRL.

With this McDonald's India has also terminated the franchisee agreement for 169 fast food in north and east India run by CPRL and said that the outlets cannot use its brand name for any operations.

On account of termination, CPRL is ceased to use McDonald's name, system, trademark, designs and its associated Intellectual property rights among others within 15 days of termination notice. This termination includes all restaurants impacted by the recent failure to renew the eating house licenses.