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Delhi HC seeks Bakshi's reply on McDonald's plea to enforce arbitral award

Justice Sanjeev Sachdeva issued notice to Bakshi and sought his response to the plea by December 7

Press Trust of India  |  New Delhi 

Vikram Bakshi
Vikram Bakshi

The High today sought response of Vikram Bakshi, estranged partner of McDonald on the company's plea seeking enforcement of an arbitral award to transfer in their joint venture to it.

The of International Arbitration (LCIA) in its September 12, 2017 order had directed Bakshi to sell his stake in the joint venture (JV), Connaught Plaza Restaurants Pvt Ltd (CPRL), to McDonald's Pvt Ltd (MIPL).

By a 2-1 majority, the LCIA in its partial award had asked Bakshi to transfer his 1,45,600 in CPRL to at a fair valuation in accordance with their JV agreement.

Justice Sanjeev Sachdeva issued notice to Bakshi and sought his response to the plea by December 7, the next date of hearing.

MIPL, represented by senior advocate Rajiv Nagar, in its plea has apart from seeking enforcement of the award also asked for extension of an interim order passed by the high in 2013 to maintain status quo regarding the shareholding in CPRL.

The December 2, 2013 order of the high had recorded a statement made on behalf of Bakshi that status quo will be maintained with regard to shareholding in CPRL till culmination of arbitral proceedings.

Bakshi's lawyers, including senior advocate N K Kaul, said there was no need to extend the 2013 order as it still continues to operate since the LCIA award was a partial one.

In view of the submission by Bakshi's lawyers, the did not pass any interim orders.

It, however, said that Bakshi, and his company Bakshi Holdings, would be bound by the statement.

MIPL had approached the LCIA after Bakshi rejected its offer to buy out his stake in CPRL.

He had reportedly rejected MIPL's offer as he felt that its valuation of the was lower than what it actually was.

First Published: Tue, September 26 2017. 12:33 IST