US McDonald's plea against NCLT show cause premature: HC
1 Feb 2018 11:47 PM IST
New Delhi: The Delhi High Court on Thursday said that a plea by McDonald's against a show cause notice issued to the fast-food major by the National Company Law Tribunal on a contempt plea filed by its estranged Indian partner Vikram Bakshi was "premature" and reflected "some paranoia".
The observations were made by a bench of justices Siddharth Mridul and Deepa Sharma while hearing the company's appeal against a single judge's decision to reject its challenge to the NCLT show cause notice.
The bench was of the opinion that the tribunal was only contemplating initiation of contempt proceedings and there has been no determination of contempt by the NCLT.
It suggested McDonald's to reply to the show cause notice and to indicate before the NCLT that there has been no violation of the tribunal's orders by the company.
"Issuance of show cause notice not a cause of action. Why should we entertain this plea at all," the bench said and added "it is a little premature. There seems to be some paranoia."
The single judge in his January 9 decision had dismissed the company's plea saying the grievances raised by it were a result of "unfounded apprehensions" that the NCLT had prejudged the issue and that it "reflects paranoia rather than substance".
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