The London Court of International Arbitration (LCIA) has asked Vikram Bakshi, the estranged partner of McDonald's in India, to sell his stake in the JV firm CPRL to the US-based fast food chain, said sources.
In its 2:1 majority award, the arbitration panel has asked Bakshi to transfer his 1,45,600 shares in the 50:50 joint venture Connaught Plaza Restaurant Ltd (CPRL) to McDonald's at a fair valuation in accordance with their JV agreement, sources added.
The international arbitration tribunal in London has also rejected Vikram Bakshi's claim that McDonald's India did not validly terminate the JV.
The LCIA has also rejected Bakshi's relief seeking a declaration that the JV agreement remains in force and effect, they said.
It has also asked Bakshi to cooperate with McDonald's in obtaining all approvals under applicable law.
There were no immediate comments from McDonald's India and Bakshi.