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After the National Company Law Tribunal’s (NCLT) order on Thursday reinstated Vikram Bakshi as Managing Director of Connaught Plaza Restaurant Pvt Ltd (CPRL), all eyes will now be on the arbitration proceedings being pursued by McDonald’s at the London Court of International Arbitration.
The US-based burger chain has been at loggerheads with Bakshi since 2013. CPRL is the 50:50 joint venture between McDonald’s and Bakshi.
Bakshi believes that the arbitrators involved in the proceedings at London will now have to take cognisance of the NCLT judgement.
He told BusinessLine : “Justice has prevailed and I feel fully vindicated with the NCLT order as our case of oppression has been proved. The judgement further declares all steps taken by McDonald’s pursuant to my non-re-election as Managing Director as illegal, unlawful, unjust and malicious. Since arbitration is one such step, in my belief the arbitrators will have to take cognisance of this judgement.”
The NCLT bench in its verdict has also appointed former Supreme Court judge GS Singhvi as the administrator with the power to vote in the meetings of the Board of Directors. Bakshi did not comment on the timelines of future board meetings.
Replying to a query on his future strategy, he said, “First and foremost, I will need to get back into the saddle of the MD, get involved again to the extent that I was prior to August 2013 and look into issues plaguing the operations.”
The tussle between the joint venture partners has been adversely impacting operations of McDonald’s restaurants in the Northern and Eastern region. Last month, CPRL had to temporarily suspend operations in over 40 restaurants in Delhi after the “eating house licenses” of these restaurants expired.
Back on trackAsked when CPRL would re-open these outlets, Bakshi said: “Re-opening these outlets shall be a priority, subject to compliances.” CPRL operates over 154 restaurants in the Northern and Eastern region.
When contacted, Barry Sum, Director, Corporate Relations, Asia Foundational Markets, McDonald’s, said: “We respect the decision of the NCLT. We are examining the judgement and exploring our legal options in the matter. ”
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