McDonald’s India has agreed for a board meeting with its estranged Indian partner Vikram Bakshi on September 30 in a departure from its earlier stance.
The burgers and fries chain and its former Indian partner for northern and eastern region are currently engaged in a tussle at the Company Law Board (CLB) where Bakshi has been seeking his reinstatement.
Bakshi, who was ousted as McDonald’s India’s Managing Director after holding the post for 17 years through a joint venture with his company Connaught Plaza Restaurants, had alleged McDonald’s of treating him unfairly over its other partner Amit Jatia. Jatia’s firm Hardcastle Restaurants runs McDonald’s in eastern and southern India.
Bakshi had approached CLB on September 9 where he alleged McDonald's of trying to buy him out at the behest of Jatia. He also alleged that McDonald’s had wanted to buy him out in 2008 for $5 million as well which he refused.
In his petition to the CLB, Bakshi accused the American fast food chain of “implementing a pre-determined scheme of attempt to take over the company in a coercive, oppressive and illegal manner contrary to law”.
In a public notice on August 30, McDonald's ousted him stating his tenure had ended. Bakshi’s re-election as managing director was also opposed by two members and supported by two in a board meeting on August 6. McDonald’s had also raised concern that Bakshi’s other business interests were affecting business and was causing conflict of interest.
Bakshi asked the CLB to grant ad-interim injunction restraining McDonald's India, its parent firm along with directors and officials appointed by them from preventing him from acting as or holding out or representing himself to be the managing director of the company.
Bakshi continues to be a director on the board of Connaught Plaza Restaurants and a joint venture partner with control of 50 per cent equity in it.
The CLB on September 16 had directed CPRL and Bakshi to maintain status quo.
Meanwhile, the next hearing of the CLB is slated for October 3 after submission of the documents related to the case on October 1.
bindu.menon@thehindu.co.in