January 25, 2018

Contempt proceedings against McDonald’s restarted: NCLT


On January 22, the contempt plea filed against American fast food chain McDonald’s Corp. by its estranged Joint Venture Partner Vikram Bakshi resumed hearing in the NCLT.

McDonald’s was guided to file a reply by January 30, 2018 to the contempt plea; the bench was headed by NCLT President M.M. Kumar.

CPRL is a 50:50 joint venture between Vikram Bakshi and McDonald’s India unit. It functions 169 McDonald’s restaurants in North and East India.

Bakshi accused that the cancellation of the agreement was against an order by NCLT in July 2017 in the contempt plea filed by him, which directed McDonald’s to not interfere in the functioning of outlets managed by the CPRL. Following this, the NCLT issued McDonald’s a show-cause notice.

McDonald’s India moved the Delhi High Court against the show-cause notice. In November 2017, the high court ordered a stay on the notice, and earlier in January 2018, it dismissed McDonald’s India’s appeal, making way for NCLT to restart hearing in the matter.

The matter is slated for hearing next on 7 February.

The squabble between McDonald’s-Bakshi traces back to 2013, when McDonald’s voted against Bakshi’s re-election as Managing Director. Since Bakshi could not take this, he challenged his removal at the Company Law Board which is now the NCLT.

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