Fast food chain McDonald’s on Wednesday told the National Company Law Appellate Tribunal that it does not want an out-of-court settlement with estranged franchise partner Connaught Restaurants Private Ltd, reported Mint.
The two parties had terminated their agreement on August 21. “We informed NCLAT today [Wednesday] that we wish to proceed with the appeal,” said Barry Sum, director of corporate relations, Asia Foundational Markets, McDonald’s Corporation.
Taking McDonald’s stand on record, the NCLAT issued notices to both parties and asked them to file their replies within a week. “Without going into the question as to who is in default, we understand that there is no chance of amicable settlement,” said NCLAT chairperson SJ Mukhopadhaya.
The NCLAT had on August 25 asked the two parties to settle the dispute among themselves. The tribunal also asked McDonald’s India and CRPL to keep running the 169 restaurants in North and East India until the settlement talks are underway.
The joint venture between McDonald’s and CRPL first hit a roadblock when managing director Vikram Bakshi was ousted in 2013 after McDonald’s voted against his re-election. Bakshi challenged his removal in the National Company Law Tribunal, and was reinstated as the managing director in July.
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