NCLAT gives 4 weeks to Bakshi to settle dispute with HUDCO

The National Company Law Appellate Tribunal (NCLAT) on Tuesday gave four weeks' time to Vikram Bakshi to settle his dispute with state owned-HUDCO which is claiming dues of Rs 195 crore from the McDonald's estranged partner.

A two member bench of the appellate tribunal headed by Chairman Justice S J Mukhopadhaya said this would be the "last chance" to Bakshi to settle the dispute with Housing and Urban Development Corporation (HUDCO).

"We allow four weeks time to Vikram Bakshi to settle the matter with HUDCO," said the NCLAT.

The tribunal also directed Bakshi to file a report on the development by filing an affidavit in the matter before it.

Earlier this month, fast-food chain McDonald's and Bakshi had announced to reach an out-of-court settlement, buying out its partner's stake in their JV Connaught Plaza Restaurants Pvt Ltd, which operates fast food chain in northern and eastern India.

Both McDonald's and Bakshi had moved to withdraw cases filed against each other before the NCLAT to settle their dispute, which was then opposed by HUDCO claiming dues of Rs 195 crore on Bakshi.

During the proceedings, counsel Amit Sibal representing Bakshi informed the NCLAT that he has already paid Rs 66 crore to HUDCO and land was also in their possession.

"We have already paid Rs 66 crore, and are ready to pay another Rs 70 crore" he said, adding that "4.65 acres of unencumbered property worth Rs 300 crore is already in the possession of HUDCO."
On this NCLAT said: "there cannot be a settlement in contravention of any judicial order", in reference to the order passed by the Debt Recovery Tribunal in HUDCO's case against Bakshi."