McDonald's case: CLB to hear argument on possibility of arbitration on December 2 & 3

This to refer dispute with its Indian joint venture patner Vikram Bakshi

The Company Law Board (CLB), on Wednesday, decided to hear the argument on tenability of McDonald’s plea to refer the dispute with its Indian joint venture partner Vikram Bakshi to arbitration in the London Court of International Arbitration on December 2 and December 3.

 

On November 12 and November 13, CLB member B S V Prakash Kumar again heard the case based on the petition filed by Bakshi, who was ousted as managing director of Connaught Plaza Restaurants that runs McDonald’s outlets in North and East India, challenging his removal as the managing director of the joint venture entity Connaught Plaza Restaurants Pvt Ltd.

In an earlier hearing at CLB in October, McDonald’s had argued that the dispute between the American fast food company and its joint venture partner Vikram Bakshi’s Connaught Plaza Restaurants should be referred to international arbitration as per certain clauses in the agreement between the two parties. 

 

Connaught Plaza Restaurants has earlier stated in an affidavit that Bakshi’s appointment as the managing director was made at a board meeting and the same was not a subject matter of any arbitration agreement. The matter of appointment was governed by Article No 35 of the Articles of Association of the company. Bakshi’s affidavit also argued that the joint venture agreement does not cover the managing director's appointment by the board of directors, but only provides for election of a managing director at a general meeting.

 

Bakshi had moved the CLB after McDonald’s, in a public notice dated August 30, said: 

“Vikram Bakshi has ceased to be the Managing Director of Connaught Plaza Restaurants pursuant to expiration of Bakshi's term on July 17.”