NCLAT directs Bakshi to file affidavit on amount received from McDonald's for his shares

The National Company Law Appellate Tribunal (NCLAT) on Wednesday asked Vikram Bakshi, estranged Indian partner of McDonald's, to file an affidavit within a week detailing the amount he has received from the sale of his shares in CPRL as part of his settlement with the US-based fast food chain.

A two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya while hearing an intervention appeal by HUDCO on the settlement reached between Bakshi and McDonald's, also asked Bakshi's wife, Madhurima Bakshi, to disclose if she too has received any amount through the settlement.

The appellate tribunal has also asked Bakshi to furnish information about the "total decreed amount" sought to be recovered from him by the Debt Recovery Tribunal (DRT) along with the total amount paid by him in favour of state-run HUDCO, which is claiming over Rs 190 crore dues.

"On the basis of the affidavit, we may decide, whether to allow the agreement and others with MIPL," said NCLAT.

Bakshi and McDonald's India Pvt. Ltd (MIPL) had approached the NCLAT to withdraw cases filed against each other for management control of Connaught Plaza Restaurants Pvt Ltd (CPRL), which operates McDonald's chain in North and East India, saying they had reached an out-of-court settlement.

However, Housing and Urban Development Corporation (HUDCO) had opposed their settlement saying Bakshi and his related entities owed dues of Rs 194.98 crore, which Debt Recovery Tribunal had also ordered Bakshi to pay.

During the proceedings of NCLAT, senior advocate Amit Sibal appearing for Bakshi informed the appellate tribunal that Bakshi was willing a one-time settlement of around Rs 137 crore.

According to him, Bakshi has received a sum of around Rs 10 crore from the sale of his personal shares in CPRL and it has already been deposited before DRT.

However, Solicitor General Tushar Mehta, representing state-run HUDCO disputed the claim and suggested NCLAT to direct Bakshi to disclose full financial details of their settlement.

However, NCLAT rejected Solicitor General's request to disclose "total consideration" of the settlement.

"There is privacy also... why should total amount be disclosed..", said Justice Mukhopadhyay.

The NCLAT also suggested HUDCO to accept the offer of Rs 137 crore for now and recover the remaining amount through the DRT proceedings.

Earlier, on May 15 NCLAT had admitted the intervention plea filed by state-owned HUDCO claiming dues of Rs 195 crore from Vikram Bakshi.