New Delhi: The National Company Law Tribunal (NCLT) on Monday adjourned the hearing of the contempt plea filed against fast food major McDonald’s Corp. and its Indian arm, McDonald’s India Pvt. Ltd (MIPL), by estranged Indian partner Vikram Bakshi.

During the proceedings, counsel appearing for McDonald’s informed that the Delhi high court would on 25 October hear a petition challenging the show cause notice for contempt issued by the tribunal. Following this, a NCLT bench headed by its chairman, justice M.M. Kumar, adjourned the matter to 7 November. MIPL had filed a writ petition before the high court, questioning the validity of the contempt notice issued by the NCLT against it.

On 5 September, NCLT had issued show cause notice to McDonald’s Corp. and MIPL over the contempt plea filed by Bakshi. He had alleged that by terminating it licence, the US- based food giant has violated the NCLT order dated 13 July, which reinstated him as the managing director of CPRL and also restrained McDonald’s Corp. from interfering in the functioning of CPRL.

Counsel for both sides submitted that they would try to complete their arguments before the high court on 25 October. The tribunal also directed the parties to file their replies based on the outcome of the high court order. In August, the food chain had terminated the franchise licence of 169 outlets run by Bakshi in north and east India, which led to a legal battle between the parties. While Bakshi challenged the termination, terming it as illegal, McDonald’s alleged breach of contract terms and payment default by Bakshi.

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