New Delhi: CRPL acquired the rights to run the McDonald’s store for the next 25 years in 1995 with a 5050 stake.The National Company Law Appellate Tribunal (ENCLAT) has barred McDonald’s and its Indian affiliate CPRL owner Vikram Bakshi from implementing a mutual agreement.
Along with this, the tribunal has banned Vikram Bakshi from going abroad without getting permission from him or DRT.Enclat has said it will review the deal between veteran American fast food chain McDonald’s and its subsidiary in north-eastern India, Connaught Plaza Restaurants Private Limited (CPRL). According to the tribunal, the deal will be reviewed by CPRL owner Vikram Bakshi to sell his shares in CPRL to McDonald’s.
A two-member bench headed by Chairman Justice SJ Mukhopadhyay said the agreement between McDonald’s and Vikram Bakshi was prima facie a violation of the orders of the Date Recovery Tribunal (DRT) and its implementation should be stopped.
The two companies had the rights to run McDonald’s stores in India. Under this, the company’s stores in North and East India were run by Vikram Bakshi-controlled CPRL, while for West and South India, this right is with Amit Jatiya-controlled Westlife Development. CRPL acquired the rights to run the McDonald’s store for the next 25 years in 1995 with a 50:50 stake.
In the year 2013, Vikram Bakshi was removed as the MD of CPRL. He went to the shelter of the then Company Law Board. The NCLT reinstated him on July 14, 2017, against which the McDonald’s petitioned in Elklat. The same year, McDonald’s terminated the franchise agreement of CPRL alleging no royalty payments. Macdonald then told Enclat that he could not reconcile with Vikram Bakshi.
