McDonald's-Bakshi dispute: Delhi HC stays CLB order

McDonald's-Bakshi dispute: Delhi HC stays CLB order

The Delhi High Court has stayed a Company Law Board (CLB) order to transfer the litigation between McDonald's and Vikram Bakshi, estranged North and East India partner of US fast-food giant, to the Chennai bench of CLB.

A bench of Justice Sanjeev Sachdeva passed the order after Bakshi's counsel informed the court that there was no consent for transferring the litigation to the Chennai bench.
The matter is fixed for further consideration on January 15, 2015.

"It is submitted that the Chairman of the Company Law Board has transferred the matter to the member on the Chennai Bench for hearing the same. The counsel for the appellant submits that though the order of the Chairman records that the consent was given by the appellant, an application has been filed before the Chairman that no consent was given on behalf of the appellant and a modification has been sought.

"In the meantime, till the next date, the operation of the order dated November 27 of the Chairman is stayed. It shall be clarified that the interim order shall not come in the way of Chairman disposing of the clarification application filed by the appellant," the bench said.
On January 30, Bakshi had offered buying out the US food major's stake in their joint venture Connaught Plaza Restaurants.

The two parties are fighting for management control of the joint venture firm before CLB.
Incorporated in June 1995, Connaught Plaza Restaurants is a 50:50 joint venture between McDonald's Corporation and Vikram Bakshi. The JV has been running fast-food outlets in North and East India.

In a public notice on August 30, McDonald's India said "Vikram Bakshi has ceased to be the Managing Director of Connaught Plaza Restaurants Ltd (CPRL) pursuant to expiry of Bakshi's term on July 17."

The move was challenged by Bakshi before CLB which had on September 16 last year directed maintaining status quo with respect to shareholding and board pattern and the right of the call option until its further order.

Meanwhile, McDonald's had on November 28 terminated its joint venture agreement with Bakshi by sending a notice and moved the London Court of International Arbitration (LCIA) to settle the dispute

Narendra Modi or Rahul Gandhi? Who will win the battle royale of the Lok Sabha Elections 2019

Get real-time news updates, views and analysis on Lok Sabha Elections 2019 on 

Like us on Facebook or follow us on Twitter and Instagram with #DHPoliticalTheatre for live updates on the Indian general elections 2019.

Liked the story?

  • 0

  • 0

  • 0

  • 0

  • 0