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McDonald's asks suppliers to stop dealing with Vikram Bakshi's CPRL

In its letter to suppliers, the US-based fast food major wrote that CPRL must cease the use of McDonald's system effective September 6th

Press Trust of India  |  New Delhi 

McDonalds asks suppliers to stop dealing with CPRL

McDonald's has asked suppliers to stop dealing with CPRL, its 50:50 joint venture with estranged partner Vikram Bakshi, in a bid to enforce its cancellation of licence.

McDonald's Pvt Ltd (MIPL) had last month terminated licence of 169 outlets operated by Connaught Plaza Restaurants Ltd (CPRL) in north and east

"As the master franchisor in India, earlier this week MIPL informed CPRL's suppliers that we have terminated our agreements with for all 169 restaurants in north and east India," a McDonald's spokesperson said.

In its letter to the suppliers, the US-based fast food major wrote: "must cease the use of the McDonald's system effective September 6. is not permitted to operate McDonald's restaurants."

When contacted, Bakshi said: "We have been reliably informed by suppliers to that they have received letters from Robert Vee Chong, a Director on the board of MIPL, indirectly pressurising them to stop supplies to 169 restaurants run by "

He further said the suppliers do not have agreements with MIPL and they take their orders from and also raise invoices to the latter.

"MIPL is not permitted by law or by any authorisation from to discharge any action on behalf of CPRL," Bakshi added.

On various occasions, Bakshi has maintained that the outlets will continue to operate till the board of met as ordered by NCLT-appointed administrator Justice

He had approached the NCLT after McDonald's removed him from the post of MD of in 2013. In July this year, the tribunal restored him to his position.

It was challenged by McDonald's in the National Company Law Appellate Tribunal (NCLAT) where the appeal is pending.

Simultaneously, Bakshi also challenged the termination of licence by McDonald's at the but was refused any interim relief. Both the appeals filed by the parties are listed for hearing on September 21.

As part of the license termination, was asked to stop using McDonalds's name, system, trademark, designs and its associated intellectual property, among others, with effect from September 6.

The suppliers of include, Vista Processed Foods, Schreiber Dynamix Dairies, Cremica Foods Industries and Amrit Foods, among others. They could not contacted immediately.

Except the 43 outlets in the national capital that were shut in June due to non-renewal of eating house licences, the remaining ones continue to operate.

First Published: Thu, September 14 2017. 09:20 IST