McDonald's informs company law appellate tribunal, settlement with Vikram Bakshi not possible
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
New Delhi: Fast food chain McDonald's on Wednesday informed the NCLAT that settlement of dispute with Vikram Bakshi, its joint venture partner for north and east India, is not possible.
The National Company Law Appellate Tribunal (NCLAT), which had last week asked both the parties to consider settling the dispute among themselves, has ordered them to file replies on cross petitions filed against each other, within a week.
During the hearing, the counsel for McDonald's said that the settlement of dispute with the franchise partner was not possible.
Posting the matter for next hearing on 21 September, NCLAT Chairman Justice SJ Mukhopadhyay said: "We find no scope of amicable settlement."
The tribunal had last week asked both the parties to decide by 30 August, whether they would consider settling dispute on their own or not.
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.
As part of the termination, CPRL has ceased to use McDonalds's name, system, trademark, designs and its associated intellectual property, among others within 15 days of the termination notice.
Bakshi was ousted from the post at the McDonald's franchisee in August 2013, following which he approached the NCLT in September the same year. He has been at loggerheads with McDonald's over management of CPRL.
He was reinstated as the MD of CPRL by NCLT on 14 July following which McDonald's approached the tribunal.
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