- September 19, 2019 / 6 min readThe National Company Law Appellate Tribunal ordered Bakshi not to leave the country without informing it or the DRT.
The yearlong dispute McDonald’s India and Vikram Bakshi which was pending from last six years may be in jeopardy, with an appellate tribunal saying it would review and may even reverse their agreement.
The tribunal mentioned that both the sides had failed to obtain its approval for their settlement and the deal appeared to violate an order of the Debt Recovery Tribunal in proceedings initiated by state-owned Housing and Urban Development Corporation (Hudco) against Bakshi.
The National Company Law Appellate Tribunal ordered Bakshi not to leave the country without informing it or the DRT.
“As we find that the parties have reached agreement which has not been approved by this appellate tribunal, prima facie being against the interim order of DRT, we are of the view that the parties should not implement such agreement nor leave this country without intimating the Debt Recovery Tribunal or this appellate tribunal,” a two-member NCLAT bench led by Justice SJ Mukhopadhaya said on Wednesday.
It is believed that the case will next be heard on November 19.
McDonald’s India acquired Bakshi’s 50% stake in Connaught Plaza Restaurants Ltd, their joint venture for the burger chain’s operations in north and east India, in May, settling a dispute that erupted when Bakshi was fired as CPRL’s managing director in 2013. McDonald’s India and Bakshi then sought to withdraw the cases they had filed against each other.
However, the NCLAT said it may reverse their agreement and the transfer of shares if it finds the deal violated the DRT’s order.
The DRT prohibited Bakshi from selling shares in CPRL in a case filed by Hudco for the recovery of loans advanced to his hospitality business, Ascot Hotels, and had directed him to pay Hudco Rs 195 crore.
The NCLAT had previously advised Bakshi and Hudco to reach a settlement so that the tribunal could approve the agreement between McDonald’s India and Bakshi.
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