The global fast food chain McDonald’s has had the conflict with Bakshi since 2013 over the management of their joint venture in India.
McDonald’s told National Company Law Appellate Tribunal (NCLAT) on Wednesday that it is unable to amicably settle its dispute with Vikram Bakshi, The Indian Express reported.
Bakshi’s company Connaught Plaza Restaurant Ltd (CPRL) had been operating 169 McDonalds franchises in India. After the termination of the agreement between the two companies on August 21, NCLAT gave both companies time until August 30 to settle the disagreement internally. However, the companies failed to resolve the issue outside the court.
“We find no scope of amicable settlement,” NCLAT Chairman Justice S J Mukhopadhyay said on Wednesday. Mukhopadhyay has set the next hearing on September 21. He ordered both parties to respond to the cross petitions that they have filed against each other within a week.
As McDonald’s has withdrawn its franchise from the CPRL, the later has only 15 days to use the fast food chain’s name, design, system, trademark, intellectual property among other things. The outlets have until September 6 to run McDonald’s name.
It was in September 2013 when Bakshi approached the NCTL, one month after the fast food giant removed Bakshi from the post of Managing Director.
McDonald’s set up its first restaurant in India in 1996 and India was also the first country where it decided to introduce non-beef and non-pork menu items. In India, the brand was being managed by two companies. Its north and east India outlets were run by CPRL with 50:50 venture between Bakshi and McDonald’s. The south and west India stores are run by Hardcastle Restaurants Pvt Ltd that is owned by Amit Jatia.
Since 2013 Bakshi and McDonalds have been fighting each other in the court for the management of the fast food giant’s stores in India. The case is awaiting a decision by the London Court of International Arbitration (LCIA) too.