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The legal spat between McDonald's and Vikram Bakshi, who was ousted as managing director of Connaught Plaza Restaurants Pvt Ltd that runs McDonald's outlets in North and East India, has intensified with Connaught Plaza Restaurants stating in an affidavit before the Company Law Board (CLB) that Bakshi's appointment as managing director was made at a board meeting.
This, the Connaught Plaza Restaurants said, was governed by Article No 35 of the Articles of Association of the company, and the same was not the subject matter of any arbitration agreement.
However, in his defence, Bakshi's affidavit argues 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.
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In the affidavits, the petitioners had raised concerns over the malafide acts which are beyond the scope of reference of arbitration. It also noted the conflicting business interest is misplaced, and designed to "oppressively" ousting the petitioner from the company.
Bakshi also noted he had infused capital of Rs 6.35 crore in the company between the last quarter of 2012 and the first quarter of 2013. According to him, the money has been lying as share application money and the issue of shares is being delayed at one pretext or the other.
He denied the credit facilities made available by banks and institutes to him are because they are supported by letters of comfort from McDonald's. He also disputed the allegation that he had promoted his own companies. Bakshi noted that Legends of India was owned by Ascot Hotels and Resorts Private Ltd, which is owned by his daughters. In his affidavit, Bakshi said he did not deceive or mislead about the ownership of Legends of India, which serves Awadi cuisine which is the most unlikely segment to be considered by McDonald's.
Meanwhile, the Company Law Board (CLB) on Friday decided to hold the next hearing of the plea by Vikram Bakshi, the Indian partner of the US-based fast food chain McDonald's - challenging his removal as the managing director of the joint venture entity Connaught Plaza Restaurants - on November 12 and 13.
The dates for the next hearing were decided after CLB member B S V Prakash Kumar heard the case on Thursday and Friday.
