McDonald’s India Private Limited has asked the Delhi High Court to enforce a London arbitration court’s order against its estranged partner Vikram Bakshi, PTI reported on Tuesday. On September 13, the London Court of International Arbitration had asked Bakshi to sell his stake in Connaught Plaza Restaurants Ltd, the franchisee for McDonald’s in North and East India.
The United Kingdom-based court had also said that independent experts should be appointed to evaluate a fair price for Bakshi’s stake. Bakshi holds 50% stake in the joint venture.
“MIPL will continue with its appeal at National Company Law Appellate Tribunal, and also continue to take all other measures and steps to exercise our legal and contractual rights in related matters,” a McDonald’s India spokesperson told Mint. Bakshi, on the other hand, refused to comment on the matter.
The conflict
On August 21, McDonald’s India had cancelled its licence agreement with Connaught Plaza Restaurant Limited. McDonald’s said it had been forced to end the partnership as CPRL had “materially breached terms of the respective franchise agreements relating to the affected restaurants, and failed to remedy the breaches”.
The joint venture between McDonald’s and CRPL first hit a roadblock when Bakshi was ousted in 2013 after McDonald’s voted against his re-election. Bakshi challenged his removal in the tribunal and was reinstated as managing director in July.
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