McDonald's won't settle out of court with Vikram Bakshi on the issue of franchising

McDonald's won't settle out of court with Vikram Bakshi

McDonald's won't settle out of court with Vikram Bakshi McDonald's India Pvt. Ltd (MIPL), the Indian branch of the fast-food chain, told the National Court that they won't settle out of court with Vikram Bakshi. McDonald’s India informed NCLAT during the hearing that it wishes to proceed with its appeal, as the settlement of the dispute with its franchise partner was not possible. NCLAT Chairman Justice SJ Mukhopadhaya said: “We understand from the arguments that there is no chance of amicable settlement.” The next hearing of the matter has been scheduled for September 21. “We filed a separate plea so that in case the two parties can’t reach a settlement, the NCLAT chairman has a right to order a fair valuation for one partner to buy the stake of another. After today, there is no option for us but to proceed with further litigation. We will figure out to where to get a stay order,” said Bakshi. In 2013, McDonald’s had voted against the re-election of Bakshi as managing director of CPRL, following which Bakshi challenged his removal at the Company Law Board (now NCLT), accusing McDonald’s of mismanagement and oppression. NCLT reinstated Bakshi as the managing director on 13 July and restrained McDonald’s Corp. from interfering in the functioning of CPRL. Bakshi's re-election as managing director at CPRL will be subject to the company board meeting under the supervision of NCLT-appointed administrator, former Supreme Court judge G S Singhvi. On August 21, McDonald’s India Pvt Ltd also announced termination of its franchise agreements with Connaught Plaza Restaurants Pvt Ltd that runs 169 restaurants in North and East India. It has asked CPRL to cease using any of the intellectual properties of McDonald’s at these outlets within 15 days of the termination notice.