NCLT showcauses US McDonald's Corp in Vikram Bakshi dispute
6 Sept 2017 12:27 AM IST
New Delhi: The National Company Law Tribunal on Tuesday dismissed a plea by Vikram Bakshi challenging termination of franchise agreement by McDonald's, while at the same time issued a show-cause notice to Mcdonald's Corporation over contempt petition by its estranged partner.
NCLT, which on Monday reserved its orders over two contempt pleas filed by Bakshi in his ongoing fight against McDonald's, asked his counsel to seek relief from the National Company Law Appellate Tribunal (NCLAT) where matter is already pending.
Bakshi had filed a contempt plea before the NCLT against termination of franchise license of 169 outlets in the north and east India last month by McDonald's.
He had also filed another plea against McDonald's Corporation alleging interference into the affairs of their 50:50 joint venture – Connaught Plaza Restaurant Ltd (CPRL).
Bakshi has been at loggerheads with the fast food chain over the management of CPRL after he was ousted from the post of MD of the McDonald's franchisee in August 2013.
McDonalds's India had asked CPRL not to use its brand system, trademark, designs and its associated intellectual property, among others, within 15 days of the termination notice which gets over on September 6. Bakshi had moved the NCLT following termination of license by McDonald's India Pvt Ltd (MIPL). In June, 43 outlets of the fast food chain were closed in the capital following expiry of eating house licenses.
CPRL board will meet today as 169 McD outlets face uncertainty
New Delhi: The board of Connaught Plaza Restaurant, the 50:50 joint venture between McDonald's India and its estranged partner Vikram Bakshi, will meet on Wednesday amid uncertainty over the fate of 169 outlets of the fast food chain run by it.
McDonald's India said the termination notice period ends on Tuesday after which the franchisee is not "authorised to use the McDonald's system and its intellectual property".
On the other hand, Bakshi reiterated that the CPRL board will decide on the future course of action in its meeting on Wednesday to be presided by NCLT-appointed administrator Justice G S Singhvi.
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