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Vikram Bakshi, who is embroiled in a legal battle with US fastfood chain McDonald’s, plans to move the Delhi High Court, challenging the “partial award” given by an arbitral tribunal of the London Court of International Arbitration (LCIA).
The LCIA, in its “partial award” passed on September 12, had asked Bakshi to sell his stake in Connaught Plaza Restaurants Ltd (CPRL) to McDonald’s. CPRL is a 50:50 joint venture between McDonald’s India and Bakshi, and runs McDonald’s outlets in the northern and eastern regions of the country.
The LCIA tribunal had also directed that independent experts be appointed to determine the fair valuation of the joint venture.
In September, McDonald’s India had filed a petition in the Delhi High Court, seeking enforcement and execution of the LCIA partial award.
However, Bakshi’s counsel on Wednesday informed a Bench of the National Company Law Appellate Tribunal (NCLAT) that he will now be filing a petition challenging the partial award in the Delhi High Court.
Twin petitionsThe NCLAT Bench was hearing petitions filed by McDonald’s and Bakshi today. While McDonald’s petition challenges a National Company Law Tribunal order that reinstated Bakshi as the MD of CPRL, Bakshi’s petition is to seek a fair valuation for his stake in CPRL.
Due to the ongoing proceedings at the Delhi High Court, the Bench decided to adjourn the hearing. The next hearing at NCLAT is scheduled for November 16.
Bakshi and McDonald’s India have been embroiled in a legal tussle since 2013.
McDonald’s had also been pursuing the arbitration against Bakshi at LCIA since 2013.
On August 21, McDonald’s India had terminated its franchise agreement with CPRL and asked Bakshi to shut down the outlets by September 6. However, CPRL continues to run them.
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