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McDonald's case: Some CPRL operated outlets of McDonald's remain open

As many as 43 outlets of the fast food chain have been closed already in the Capital since June, following the expiry of eating house license.


By   |  Updated On : September 07, 2017 08:50 AM
Some CPRL operated outlets of McDonald's remain open. (File Photo)

Some CPRL operated outlets of McDonald's remain open. (File Photo)

New Delhi :  

Amid uncertainty over the future of 169 such restaurants following the cancellation of license, some of the outlets of McDonald's run by CRPL, franchisee of the US fast food chain for north and east India, continued to function yesterday.

Due to an alleged breach of contract terms and payment default, McDonald's India had terminated franchise agreement for 169 outlets run by Connaught Plaza Restaurants Ltd (CRPL).

In a bid to stop using its brand and associated intellectual property following termination of the license, it had given 15-days notice to CPRL- a 50:50 joint venture between the company and its estranged partner Vikram Bakshi.

However, PTI correspondent found the outlet of the chain at the international airport here operating in full swing. It has also been confirmed that outlets of the fast food chain in parts of South Delhi and Gurugram operated during the day.     

As many as 43 outlets of the fast food chain have been closed already in the Capital since June, following the expiry of eating house license.

Meanwhile, during the day the board of CPRL met with NCLT-appointed administrator Justice G S Singhvi presiding the meeting to decide a future course of action.   

When contacted, Bakshi said: "Our appeal in front of NCLAT is to be heard tomorrow. The administrator on the board of CPRL in the board meeting today has asked both sides to await NCLAT's decision tomorrow."   

A McDonald's India spokesperson said: "We are looking to take steps to exercise our legal and contractual rights to enforce the termination."    The spokesperson had stated yesterday that CPRL was no longer authorized to use the McDonald's system and its intellectual property after the expiry of the termination notice.     

In another development, Bakshi claimed he has been elected again as Managing Director of CPRL by Justice GSSinghvi. "Whilst the NCLT had restored my position as MD from August 6, 2013, at the board meeting today I have been elected as MD again for a further period," Bakshi said.   

However, appellate tribunal (NCLAT) today denied any interim relief to Bakshi on his plea seeking a stay on the termination of franchise agreement. The tribunal has listed the matter for hearing tomorrow.     

The National Company Law tribunal (NCLT) yesterday dismissed a plea by Bakshi challenging termination of the franchise license asking him to seek relief from the appellate tribunal where the matter is already pending.   

McDonald's and Bakshi have been fighting over the management of CPRL after he was ousted from the post of managing director of the joint venture company in 2013.    

The US food giant has another franchise agreement with Hardcastle Restaurants Pvt Ltd, which operates 261 McDonalds outlets in western and southern India.

(With PTI Inputs)

First Published: Thursday, September 07, 2017 08:01 AM

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