The National Company Law Tribunal (NCLT) has barred US-based McDonald’s Corporation from interfering in the smooth operations of restaurants owned by its licensee in India and joint venture, Connaught Plaza Restaurants Pvt Ltd (CPRL).

The NCLT order said McDonald’s Corporation is restrained from interfering with the smooth functioning of Connaught Plaza and all its 154 restaurants open in the assigned territory of North and East India. The tribunal also ruled in favour of Vikram Bakshi, the Indian partner, and re-appointed him Managing Director of CPRL.

NCLT’s order said: “All steps taken in pursuance of non-election of Vikram Bakshi as Managing Director, are also declared illegal, unlawful, unjust and malicious.”

The tribunal also noted that the board of CPRL is split, with two nominee Directors from McDonalds India and the other two being Bakshi and his wife. In order to break the impasse, the court appointed Justice GS Singhvi, a former Supreme Court judge, as an Administrator with the powers to vote in board meetings. Bakshi had earlier told BusinessLine that around 40 McDonald’s restaurants in the capital had temporarily suspended operations in June.

Sources had said that as the tussle between the board escalated, McDonald’s operations in the Northern and Eastern regions in the country had been adversely impacted. Since the ouster of Bakshi in 2013 as the Managing Director, the board of CPRL, has been running the day-to-day operations.

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