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The National Company Law Appellate Tribunal on Thursday said that it will study the award given by the London Court of International Arbitration to arrive at a decision in the ongoing dispute between the US-based fast food McDonald's and its estranged Indian partner Vikram Bakshi.
A bench headed by Justice SJ Mukhopadhaya said the Tribunal will see whether it is the case of oppression and mismanagement or arbitral dispute. He said that if it's oppression and mismanagement then the LCIA award is not binding.The bench further added that if it's the case of arbitral dispute, then the tribunal has no jurisdiction
The NCLAT is now scheduled to next hear the appeals on October 25.
The Tribunal was hearing two appeals. McDonald's India is challenging an order of the National Company Law Tribunal which reinstated Bakshi as the MD of CPRL in July. Meanwhile, Bakshi has been seeking relief from the termination notice from McDonald's India.
CPRL is a 50:50 joint venture between McDonald's India and Vikram Bakshi for North and East region and the two partners have been embroiled in a legal dispute since 2013.
McDonald's India had served the franchise agreement termination notice to Bakshi on August 21. It has also asked CPRL to cease using McDonald's India trademark by September. However, not only did CPRL continue running the restaurants, it also managed to reopen 19 outlets after renewing their health licences which had expired in June.
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