Companies

NCLAT directs Vikram Bakshi to reveal amount received from US major

Meenakshi Verma Ambwani New Delhi | Updated on July 10, 2019 Published on July 10, 2019

Also wants to know ‘total decreed’ amount pending against him in recovery tribunal

The National Company Law Appellate Tribunal (NCLAT) on Wednesday directed Vikram Bakshi, the former Indian joint venture partner of American burger chain McDonald’s, to furnish an additional affidavit outlining various financial details, such as the amount he received from his settlement with the American burger chain.

After being embroiled in a bitter legal feud, Bakshi and McDonald’s had earlier this year said that they have reached an out-of-court settlement. Under this, McDonald’s India said it has acquired Bakshi’s 50 per cent stake in their JV, Connaught Plaza Restaurants Pvt Ltd.

A two-member NCLAT Bench headed by Chairperson SJ Mukhopadhaya has directed Bakshi to furnish this additional affidavit within a week. The appellate tribunal has also asked him to provide details in the affidavit about the “total decreed” amount pending against Bakshi in the proceedings before the Debt Recovery Tribunal. In addition, it has also sought details regarding the amount he has paid in favour of HUDCO, and the rest that he intends to pay in lieu of a one-time settlement. This comes at a time when HUDCO has claimed dues worth ₹190 crore in relation to a loan granted to an entity controlled by Bakshi.

However, NCLAT rejected HUDCO's request for disclosure of “total consideration” of the settlement in the affidavit.

During the proceedings, senior counsels representing Bakshi said that they have proposed to pay ₹137 crore to HUDCO, which includes proceeds from his settlement with the American burger chain.

Meanwhile, the appellate tribunal has also asked for a disclosure on whether Bakshi’s wife Madhurima Bakshi has also received any amount as part of the settlement with the American burger chain. The Bench added that on the basis of this affidavit, it will decide whether to allow the agreement between Bakshi and McDonald’s India.

McDonald’s and Bakshi are currently seeking to withdraw cases filed against each other before the NCLAT and acceptance of the terms of their out-of-court settlement. However, HUDCO’s intervention application before the NCLAT stating that Bakshi should pay its dues first has delayed this process.

In a hearing on May 28, the NCLAT had directed Bakshi to settle its dispute with HUDCO within four weeks. The next hearing at the NCLAT is scheduled for August 1.

Published on July 10, 2019
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