Back18 of 43 McDonald’s outlets in Delhi reopened: Vikram Bakshi
The board of Connaught Plaza Restaurants, the joint venture between Vikram Bakshi and McDonald's India, on Sunday passed a resolution to reopen 21 outlets for which licences had been received
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New Delhi: Connaught Plaza Restaurants Pvt Ltd (CPRL), the joint venture between Vikram Bakshi and McDonald’s India Pvt. Ltd, has reopened 18 out of 43 outlets in the national capital that had been shut since June following the company’s failure to renew their licences.
CPRL is the north and east India licencee of the American fast-food chain and operates 169 McDonald’s restaurants.
The CPRL board on Sunday passed a resolution to reopen 21 outlets for which licences had been received; 18 outlets were reopened on Tuesday.
Representatives of McDonald’s India Pvt. Ltd (MIPL) on the board of CPRL did not attend the meeting. The meeting was presided over by former Supreme Court judge G.S. Singhvi, who has been appointed as an administrator on the board of CPRL by the National Company Law Tribunal, or NCLT.
“The board of CPRL under the chairmanship of Hon’ble Justice GS Singhvi had passed a resolution on 17 September to reopen the 21 restaurants for which health licenses have since been received. This decision has been taken by the board of CPRL in the best interest of the employees, vendors, landlords and all stakeholders," Bakshi said in a text message.
This comes in the backdrop of McDonald’s India terminating its franchise agreement with CPRL for 169 restaurants across north and east India on 21 August. According to the termination notice, Bakshi was supposed to cease using the McDonald’s name, trademarks, designs, branding, operational and marketing practice and policies and food recipes and specifications from 6 September.
However, all McDonald’s outlets have continued to operate until now, except 43 restaurants in Delhi.
An MIPL spokesperson said CPRL was no longer authorised to operate McDonald’s restaurants and that the fast food chain will continue to take steps to exercise its legal and contractual rights (to enforce termination).
“Consequent on the termination of the franchise agreements of 169 McDonald’s restaurants operated by CPRL in the north and east of India, effective September 6, CPRL is required to cease using the McDonald’s system and is no longer authorized to operate McDonald’s restaurants. We will continue to take steps to exercise our legal and contractual rights. At this point we do not have additional details to share," the spokesperson said.
The Bakshi-McDonald’s India row goes back to 2013, when the latter voted against his re-election as managing director of CPRL. Following this, Bakshi challenged his removal in the company law board (now NCLT).
NCLT reinstated Bakshi as MD in July. McDonald’s challenge to the NCLT order is pending before NCLAT.
Separately, a show-cause notice has been issued to McDonald’s Corp. by NCLT, on a contempt application filed by Bakshi alleging that the termination of the franchise agreement was in conflict with the tribunal’s order, which asked the American fast-food chain to refrain from interfering in the smooth functioning of CRPL and its 169 restaurants.
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