McDonald’s deal: NCLAT admits HUDCO’s plea against Bakshi over unpaid dues

Our Bureau New Delhi | Updated on May 15, 2019 Published on May 15, 2019

The National Company Law Appellate Tribunal (NCLAT) on Wednesday admitted an intervention plea filed by Housing and Urban Development Corporation (HUDCO), claiming unpaid dues worth ₹195 crore from Vikram Bakshi.

A Bench headed by Chairperson SJ Mukhopadhaya accepted HUDCO’s plea and observed that Bakshi, the former Indian joint venture partner of American burger chain McDonald’s, and HUDCO, should explore the possibility of a settlement. The next hearing in the matter is on May 27.

HUDCO had filed an intervention application before the NCLAT seeking that its dues be cleared first from the amount Bakshi receives from McDonald’s.

Last week, McDonald’s had said it had reached an out-of-court settlement with Bakshi. The MNC said it had completed the acquisition of Bakshi’s 50 per cent stake in Connaught Plaza Restaurants Pvt Ltd (CPRL), the JV company that operated McDonald’s outlets in North and East India.

HUDCO’s counsel informed the NCLAT that a case related to the upaid dues is being heard by the Debt Recovery Tribunal (DRT). He said there cannot be a settlement as the matter is still pending at the DRT. He added that Bakshi should clear HUDCO’s dues before the settlement, as he is restricted from selling his shares in CPRL till then.

Meanwhile, counsels representing Bakshi and McDonald’s requested that they be allowed to withdraw their petitions against each other at the NCLAT. However, the NCLAT Bench did not agree, saying HUDCO and Bakshi should try to settle their case first.

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Published on May 15, 2019
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