McDonald's case: Bakshi to deposit Rs 5cr to go abroad

Last Updated 23 October 2019, 12:34 IST

The National Company Law Appellate Tribunal (NCLAT) on Wednesday directed Vikram Bakshi, the estranged partner of McDonald's, to deposit Rs 5 crore as a security deposit for permission to travel abroad.

A two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya asked Bakshi and his wife Madhurima Bakshi to deposit Rs 5 crore each by Thursday for permission to travel overseas.

On September 18, the NCLAT had restrained Bakshi from travelling abroad without its permission.

On being informed by Bakshi's counsel on Wednesday that dues of Hudco would be cleared by him soon, the NCLAT said he would have to furnish the security deposit first before he can travel abroad.

"Fraud is committed by you. You have violated the orders of Debt Recovery Tribunal (DRT). You can violate our order also," the appellate tribunal observed.

"DRT has asked not to transfer (your share) and you transferred it in violation of its order," it added.

In September, NCLAT had said it will review the settlement between fast food major McDonald’s and its Indian partner Vikram Bakshi over the sale of his shares in Connaught Plaza Restaurants Ltd (CPRL).

NCLAT said the settlement reached between McDonald’s and Bakshi was prima facie in violation of a Debt Recovery Tribunal order and it "would not be given effect to".

The NCLAT bench had also asked Bakshi not to leave the country without its permission.

CPRL, which is now wholly owned by McDonald’s after Bakshi transferred his share in the joint venture to the US-based firm, had temporarily shut down its 160 stores.

CPRL had on 20 May said that it has reopened 13 restaurants in Delhi and its suburbs.

On May 6, McDonald’s and Bakshi had told NCLAT that they were working towards an out-of-court settlement to end their dispute.

McDonalds’s announced an out-of-court settlement with the fast food chain in May, agreeing to buy out Bakshi from their joint venture that operated outlets in north and east India.

The details of the pact, including financial terms, were not disclosed.

Following that, both Bakshi and McDonald’s had approached the NCLAT to withdraw cases filed against each other but it was opposed by Hudco, which is claiming Rs 195-crore dues from Bakshi.

(Published 23 October 2019, 12:34 IST)

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