Setback for McDonalds as NCLT reinstates Bakshi as MD of Connaught Plaza RestaurantThe tribunal has said the meeting of Connaught Plaza Restaurants Ltd (CPRL) of August 6, 2013 in which Bakshi was removed as MD of the company was illegal, unjust and malafide
In a major setback to the US- based fast food chain McDonald's in India, the National Company Law Tribunal (NCLT) today restored its estranged partner Vikram Bakshi as the Managing Director of Connaught Plaza Restaurant Ltd.
The tribunal has said the meeting of Connaught Plaza Restaurants Ltd (CPRL) of August 6, 2013 in which Bakshi was removed as MD of the company was illegal, unjust and malafide.
"The status of Mr Vikram Bakshi as Managing Director of CPRL is restored," said a two-member NCLT bench headed by its President Justice M M Kumar.
The court has also appointed former Supreme Court judge G S Singhvi to act as administrator in the company with power to vote.
"He (Bakshi) shall continue to act as Managing Director of CPRL subject to passing of any resolution under the Chairmanship of the administrator," the tribunal said.
It further observed: "All steps taken in pursuance of non-election of Vikram Bakshi as Managing Director are also declared illegal, unlawful, unjust and malicious."
CPRL, a 50:50 joint venture between McDonald's India Pvt Ltd (MIPL) and Bakshi, is the licensee for north and east India regions of the US fast food chain.
Bakshi was at loggerheads with the US based fast food chain over the management of CPRL.
In a public notice on August 30, 2013, McDonald's India said: "Vikram Bakshi has ceased to be the Managing Director of Connaught Plaza Restaurants pursuant to expiration of Bakshi's term on July 17."
However, Bakshi contested that he cannot be removed as MD through a general meeting of the company.