New Delhi : Fast food major McDonald said it is exploring legal options after the NCLT restored its estranged partner Vikram Bakshi as the managing director of Connaught Plaza Restaurants Ltd (CPRL). Besides, restoring Bakshi as the MD of CRPL, the National Company Law Tribunal (NCLT) has also restrained the Illinois- headquartered McDonald’s Corporation, the parent company of McDonald’s India Pvt Ltd (MIPL), from interfering in the functioning of the joint venture.
“We respect the decision of the NCLT. We are examining the judgement and exploring our legal options in the matter,” said MIPL in an official statement. Any order of NCLT could be challenged before the National Company Law Appellate Tribunal (NCLAT) within 45 days of the order. CPRL, a 50:50 joint venture between McDonald’s India Pvt Ltd (MIPL) and Bakshi, is the licensee for north and east India regions for the fast food chain.
Commenting on the development, Vikarm Bakshi told PTI, “Our stand has been vindicated and we have got justice after fighting for the right cause. I admire the Indian judiciary which has gone in every account and delivered a judgement on Indian entrepreneurship.” He further added that CRPL would now come back to its growth and operational journey the way it was prior to 2013 and continue to progress.
Bakshi was not re-elected as the MD of CRPL following the objections of MIPL and its parent company. McDonald had on August 30, 2013 announced that Bakshi’s term as MD of CPRL had ended on July 17 following which Bakshi challenged the decision before CLB (the previous body having jurisdiction over company matters). Consenting to his submissions that McDonald wanted to oust him after the venture was established in India, the NCLT said, “It is with a view to grab hard labour of Bakshi which has been invested in CPRL that had triggered the non-voting in his favour on the meeting dated August 6, 2013.”