McDonald's challenges Vikram Bakshi's reinstatement in company law appellate tribunal
McDonald's India on Wednesday said it has challenged before the NCLAT the order of National Company Law Tribunal (NCLT) reinstating estranged partner Vikram Bakshi as Managing Director of its joint venture, CPRL
New Delhi: McDonald's India on Wednesday said it has challenged before the NCLAT the order of National Company Law Tribunal (NCLT) reinstating estranged partner Vikram Bakshi as Managing Director of its joint venture, CPRL.
Connaught Plaza Restaurant Ltd (CPRL) -- the licensee of the food chain in north and east India region -- is an equal joint venture between McDonald's India and Bakshi.
On 13 July, the NCLT had restored Bakshi as MD of CPRL after and imposed a fine of Rs 10 lakh on the US-based fast food chain, besides restraining them from interference in the functioning of CPRL.
Confirming the company's step to challenge the NCLT order, McDonald's India spokesperson Barry Sum told PTI: "...we are exercising our legal right and appealing the NCLT decision to NCLAT."
The appeal was filed on Wednesday, he added.
Bakshi was ousted from the post of MD at the McDonald's franchisee in August 2013, following which he approached NCLT in September the same year. He has been at loggerheads with McDonald's over management of CPRL.
However, McDonald's took the matter to London Court of Arbitration citing the terms and conditions, where the matter is pending.
In June, 43 outlets of McDonald's in the national capital were closed following the expiry of eating house licence.
On Monday, McDonald's terminated franchise agreement of 169 outlets run by CPRL alleging breach of contract terms and payment default by the operator of the franchise in north and east India.
The fast food chain has a total of 430 outlets in the country.
On Tuesday, the NCLT had dismissed Vikram Bakshi's petition against cancellation of franchise licence agreement to CPRL, following which he moved an appeal before NCLAT.
US fast food chain McDonald's has selected MMG Group chairman Sanjeev Agrawal as its new partner to operate its outlets in north and east India, the company said
McDonald's on 21 August terminated franchisee agreement for the 169 outlets in north and east that were operated by Connaught Plaza Restaurant Ltd (CPRL), the joint venture (JV) with Bakshi