Vikram Bakshi gets 4 weeks to settle Hudco dispute1 min read . Updated: 29 May 2019, 12:11 AM IST
- Hudco has claimed dues worth Rs195 crore from Vikram Bakshi, former partner for McDonald's in north and east India
- The development comes just weeks after McDonald’s and Bakshi had agreed to an out-of-court settlement to resolve the six-year-long legal dispute
NEW DELHI : The National Company Law Appellate Tribunal (NCLAT) on Tuesday directed Vikram Bakshi, the former McDonald’s partner for north and east India, to settle the dispute with state-owned Housing and Urban Development Corp. Ltd (Hudco) within four weeks.
Bakshi is still to repay the ₹195 crore, which includes unpaid principal, interest and penalties, Hudco had lent to Ascot Hotels and Resorts owned by Bakshi.
The development comes just weeks after McDonald’s and Bakshi had agreed to an out-of-court settlement to resolve the six-year-long legal dispute. However, an intervention by Hudco led to a delay in withdrawal of cases by both parties, as part of the settlement process.
The two-member bench headed by the appellate tribunal chairman Justice S.J. Mukhopadhaya directed Bakshi to ensure that the matter is settled with Hudco before the next hearing on 10 July. “We allow four weeks time to Vikram Bakshi to settle the matter with Hudco," the bench directed, adding that this would be the last chance for Bakshi.
The bench also asked Bakshi to file an affidavit on the settlement.
Bakshi had deposited ₹10 crore on Tuesday morning with the Debt Recovery Tribunal, said Amit Sibal, who appeared on behalf of Bakshi.
The former McDonald’s partner had also paid ₹66 crore to Hudco and is offering to pay ₹70 crore more, he said. On 9 May, the American fast-food chain said that it had bought out Bakshi’s 50% stake in their joint venture CPRL (Connaught Plaza Restaurants Pvt. Ltd), making it a wholly owned subsidiary of McDonald’s India Pvt. Ltd, and its affiliate McDonald’s Global Markets Llc.
Bakshi, the burger chain’s local partner for north and east India since the mid-1990s was ousted as its managing director in 2013. This led to a legal dispute between McDonald’s and Bakshi. The two agreed to resolve their differences through an out-of-court settlement earlier this month and withdraw all cases against each other. However, on 16 May, Hudco moved NCLAT opposing the settlement between the two till its dues are recovered from Bakshi.
Hudco had given a loan of ₹62.38 crore to Ascot Hotels and Resorts in the mid 2000s. However, the latter defaulted on loan repayment. In 2013, Hudco moved the Debt Recovery Tribunal to recover its dues.