NCLAT Asks McDonald’s And Vikram Bakshi To Settle Dispute Themselves
The National Company Law Appellate Tribunal (NCLAT) asked U.S. fast food giant McDonald’s and its estranged Indian joint venture partner Vikram Bakshi to consider settling their dispute among themselves.
The tribunal, which will hear the matter next on August 30, asked McDonald’s to give an undertaking that the 169 outlets will be allowed to function till the negotiations are on. The parties will have to decide by then whether they will consider settling the dispute.
McDonald's has terminated its franchisee agreement for the 169 outlets in north and east that were operated by Connaught Plaza Restaurant Ltd., the joint venture with Bakshi’s firm.
According to the termination notice issued by McDonald’s to Connaught Plaza Restaurant, the outlets have time till September 6 to function, post which they will have to stop using the McDonald’s name and trademark.
The tribunal also asked Bakshi to give an undertaking that he would not pursue the criminal cases filed in India against McDonald’s executives when they come for negotiations.